Government cash 'sufficient for council tax freeze'

Published on Thursday 6 November 2008 08:42

FINANCE Secretary John Swinney has insisted the cash councils have been promised by the Scottish Government is enough to freeze the council tax next year.

Linlithgow Labour MSP Mary Mulligan quizzed him on the issue when he appeared before the Scottish Parliament's local government committee.

She pointed out the 70 million that councils will receive next year to compensate them for a zero tax rise is the same amount as they received this year.

But Mr Swinney said if the cash had been calculated by applying the "GDP deflator" – a measure of inflation – it would have been just 58m. "So there was a gain for local government in the position last year," he said.

And he said the sum was sufficient to enable another freeze.