Council tax to be 'effectively' frozen across Scotland after breakthrough in stand-off with Argyle and Bute and Inverclyde

The Scottish Government said agreement had been reached with Argyll and Bute and Inverclyde councils

Council tax will be “effectively” frozen across Scotland after talks with two rebel local authorities reached a breakthrough.

Argyll and Bute Council said it would reconsider a freeze after previously announcing a 10 per cent hike. Meanwhile, the Scottish Government said an agreement had been reached with Inverclyde Council.

It will still raise council tax by 8.2 per cent, but will give taxpayers a “one-off credit” to fully mitigate the impact of this.

Argyll and Bute Council, which covers Tobermory on Mull, are reconsidering a 10 per cent increase in council tax. Picture: Getty Images

A spokesman for First Minister Humza Yousaf said: "Council tax has been frozen across all 32 local authorities.” He added: “For 31 council areas, it’s a simple freeze, and in effect it is a freeze in Inverclyde because of the one-off credit.”

The move will come as a relief for Mr Yousaf, who announced a council tax freeze during the SNP conference last year, but faced an immediate backlash from local authorities.

Deputy First Minister Shona Robison, who is also in charge of Scotland’s finances, previously said those councils which raised the tax would not receive a share of extra funding.

Argyll and Bute said it had been given “extra assistance” to deal with the impact of severe weather support.

Council leader Robin Currie said: “We can now look at freezing council tax for the coming year. We have been lobbying hard for equal support for Argyll and Bute, which reflects the incredibly severe impact of unprecedented severe weather in October last year.

“We made a very strong case for that to the Scottish Government at a meeting we asked for in January this year. We have continued to press ministers ever since on a range of other issues. We are, of course, delighted that they have listened to our calls for severe weather support and that they have now provided for Argyll and Bute that extra assistance that we are fighting for.”

The council said additional funding totalling around £6.26 million meant the overall financial circumstances had improved.

Mr Currie added: “We see this as acknowledgement of a number of significant issues. It is recognition of the unique challenges that Argyll and Bute faces, which we fight for at every possible opportunity. It reinforces the important role of local government.

“And it supports what has been our priority all along – protecting vital local jobs and services. I will be recommending that we freeze council tax for this year at a special meeting of the council.”

Those living in Inverclyde would have seen an 8.2 per cent rise this year and a 6 per cent increase the following year. However, earlier this month, council leader Stephen McCabe said he had “reflected” on discussions with Ms Robison, instead offering a “compromise”.

He wrote to the Deputy First Minister to state he would use the additional funding to offer a council tax rebate to Inverclyde residents, amounting to a freeze.

Mr McCabe said: “I have reflected on the discussions at the full council yesterday and the desire expressed by many of my fellow councillors that Inverclyde residents should benefit from the funding on offer from the Scottish Government for a council tax freeze. I have therefore written today to the Deputy First Minister proposing a way in which this can be achieved.”