All Scots councils set to freeze tax for a second year

Published on Tuesday 10 February 2009 21:08

JOHN Swinney, the finance secretary, is on the verge of securing a second successive council tax freeze over the next 48 hours, as local authorities confirm their budgets.

Despite a threatened rebellion late last year and tighter budgets caused by the economic crisis, it is almost certain that all Scottish councils will continue to freeze the tax.

The Scotsman has had confirmations from 25 of the 32 councils that the 70 million being offered to them collectively is enough to keep the council tax at the same level as it has been for the past two years.

The other seven local authorities have not replied, but they are expected to follow suit.

Privately, many councils have admitted that, even though they are short of funds, it would amount to "political suicide" to increase payments. If they did they would also have to make up for the money which Mr Swinney has offered for an inflation-level increase of 3 per cent that would be withdrawn from their budget allocation.

Linda Gow, the Labour leader of Falkirk Council, said: "We will be implementing a council tax freeze this year, as it is the only means of accessing our share of the 70 million."

Another council official, who did not wish to be identified, said that in the current economic climate a council tax rise above inflation would be very unpopular.

"It is better to take the Scottish Government's money and freeze the council tax," he added.

Other senior councillors were more enthusiastic. Peter Johnston, the SNP leader of West Lothian Council, said: "After a decade in which the council tax has gone up by 94 per cent, we are delighted to be in a position to freeze (it] for the second year running."

However, others warned it would lead to cuts.

Rhondda Geekie, the Labour leader of East Dunbartonshire, said: "We will freeze the council tax, but there will be 6 million worth of cuts to be made."

In Falkirk, Ms Gow said that there would have to be 9 million of savings.

SNP ministers have said that they fully expect a council tax freeze to be implemented and that the current settlement for councils is the best councils have ever had, supported by flexibility in the concordat.

They blame cuts on the "worst settlement in the Scottish block grant since devolution began".