Council tax 'mismanaged since 1991' as experts say SNP reforms were a 'desperate search for cash'

Humza Yousaf announced at the SNP party conference there would be a freeze on council tax next year.

First Minister Humza Yousaf during his speech during the SNP annual conference at the Event Complex Aberdeen (TECA) in Aberdeen.

Successive governments have mis-managed council tax over more than 30 years of collective failure, experts have said.

Advice papers from the Royal Society of Edinburgh also heavily criticised the now-ditched council tax reforms brought forward by the SNP which would have seen significant increases for those living in the most expensive properties.

They said the move was a “desperate search for money” which was “more likely to hinder future reform of council tax than to help”.

Plans, now ditched by Humza Yousaf, would have seen an increase in the relative tax rates on properties in Band E to H, rising by between 7.5 per cent and 22.5 per cent.

The proposed increase – likely to result in £176m in additional funding – was exploited ruthlessly by Scottish Labour during the Rutherglen by-election campaign who warned voters of SNP plans to significantly increase the amount individuals would be paying in council tax.

The announcement of a council tax freeze, made at SNP conference, also sparked fury among council leaders due to not being warned beforehand.

However, the Royal Society attacked the planned reforms to council tax, stating it could not be made fairer “while using out-of-date valuations".

Council tax is set based on the value of a house in 1991, often inflating the value of some properties while artificially deflating others.

The Royal Society said making council tax fairer was “impossible...without a property revaluation”.

They said: “Rather than go ahead with changing the multipliers, the Scottish Government should commission a survey to establish just how inaccurate the 1991 banding now is, paying attention to the expectation that there will be geographic differences in house price changes as well as relative price changes by property type.

"The Council Tax consultation gave the impression of a desperate search for more cash from Council Tax, albeit a relatively small amount, required in part because of the cumulative effects of the nine-year Council Tax freeze.

"What is required instead is securing the research and data underpinning for a programme of local taxation reform which might take 10 years to complete.

"The information should be available so that political parties can adopt well-informed policy positions ahead of the 2026 Holyrood election and so that a measure of political consensus might be developed.

They added: “Undoubtedly reform is politically difficult, which is why it has never happened since relevant powers were fully devolved from 1999.

"Mismanaging those parts of the tax system in Scotland which are devolved reflects badly on the Scottish Parliament.”

Another advice paper, written by the Celtic Academies Alliance, said a Green Land Value Tax which would tax land rather than property or wealth should be considered by the Scottish Government as a more stable and progressive alternative to council tax.

The government said it had not yet been informed of any expected funding from the Chancellor’s Autumn statement, due on November 22.

Advice papers from the Royal Society of Edinburgh also heavily criticised the now-ditched council-tax reforms brought forward by the SNP which would have seen significant increases for those living in the most expensive properties.

They said the move was a “desperate search for money” which was “more likely to hinder future reform of council tax than to help”.

Plans, now ditched by Humza Yousaf, would have seen an increase in the relative tax rates on properties in Band E to H, rising by between 7.5 per cent and 22.5 per cent.

The proposed increase – likely to result in £176m in additional funding – was exploited ruthlessly by Scottish Labour during the Rutherglen by-election campaign who warned voters of SNP plans to significantly increase the amount individuals would be paying in council tax.

The announcement of a council-freeze, made at SNP conference, also sparked fury among council leaders due to not being warned beforehand.

However, the Royal Society attacked the planned reforms to council tax, stating it could not be made fairer “while using out-of-date valuations".

Council tax is set based on the value of a house in 1991, often inflating the value of some properties while artificially deflating others.

The Royal Society said making council tax fairer was “impossible...without a property revaluation”. They said: “Rather than go ahead with changing the multipliers, the Scottish Government should commission a survey to establish just how inaccurate the 1991 banding now is, paying attention to the expectation that there will be geographic differences in house price changes as well as relative price changes by property type.

"The Council Tax consultation gave the impression of a desperate search for more cash from Council Tax, albeit a relatively small amount, required in part because of the cumulative effects of the nine-year Council Tax freeze. What is required instead is securing the research and data underpinning for a programme of local taxation reform which might take 10 years to complete.

"The information should be available so that political parties can adopt well-informed policy positions ahead of the 2026 Holyrood election and so that a measure of political consensus might be developed.

They added: “Undoubtedly reform is politically difficult, which is why it has never happened since relevant powers were fully devolved from 1999. Mismanaging those parts of the tax system in Scotland which are devolved reflects badly on the Scottish Parliament.”

Another advice paper, written by the Celtic Academies Alliance, said a Green Land Value Tax which would tax land rather than property or wealth should be considered by the Scottish Government as a more stable and progressive alternative to counciltax.

A Scottish Government spokesperson said: “The First Minister’s decision to freeze council tax next year and not to proceed with the proposed increases is a cost-of-living measure that will bring welcome financial relief to households across Scotland.“Longer term reforms to the council tax system are being considered by the Joint Working Group on Sources of Local Government Funding and Council Tax Reform with COSLA.”