Swinney adamant council tax freeze will go ahead

Published on Sunday 23 November 2008 20:56

JOHN Swinney insisted yesterday that Scotland's local authorities had enough money to deliver next year's council tax freeze without any extra resources from the government.

The finance secretary was responding to warnings from some council leaders that, without significant extra cash, they will not be able to bring in the second year of the freeze.

This year's moratorium was agreed by Scotland's councils after ministers gave them an additional 70 million.

Another 70 million is on offer for next year, but because of the changed economic situation, higher fuel costs and other inflationary pressures, some councils believe that will not be nearly enough to deliver the freeze.

Steven Purcell, the Labour leader of Glasgow City Council, said: "The money from the Scottish Government does not reflect the inflationary pressures. It did last year, but the same amount of money this year will not fund the inflationary pressures on council tax."

But Mr Swinney said last year's freeze had only cost councils 58 million and he had allowed them to keep the 12 million.

"Now in the forthcoming two years, 70 million of new money will be available in each financial year to support the freeze in the council tax," he said. "By the time we get to next April, there is absolutely no way inflation will be running at the current level of 4.5 per cent, absolutely no way whatsoever.

"So I think there is adequate money to freeze the council tax."