Council tax freeze Scotland: Inverclyde council becomes second local authority to reject Humza Yousaf tax freeze

Two local authorities – Inverclyde and Argyll and Bute – have now voted for

A second local authority has voted to push through a rise in council tax in a move that appears set to wreck the Scottish Government’s plans for a nationwide freeze.

Inverclyde Council on Thursday backed a 8.2 per cent increase, effectively rejecting a plea by Humza Yousaf for local authorities to support a widespread freeze on council tax. The decision was made as council leader Stephen McCabe accused ministers of bullying, saying the attempt to force through a freeze was "shameful".

The council also voted for a 6 per cent council tax increase in 2025/26, saying it faced an estimated £12.5 million funding gap over the next two financial years.

Humza Yousaf and Shona Robison. Picture: Jeff J Mitchell/Getty Images

Mr McCabe said: “This has been the most difficult budget process that I have been involved in during my 17 years with the council. Despite the challenges, we are fulfilling our legal obligation to deliver a balanced budget and, more importantly, we are delivering a budget that protects frontline jobs and services for the people of Inverclyde.

“At a time when Inverclyde is haemorrhaging jobs in the private sector, we have kept council jobs losses to the bare minimum.”

Mr McCabe added: “An 8.2 per cent increase means the average council tax rise over the last 17 years is 1.5 per cent, still significantly below the rate of inflation. We are today exercising our right as a council to set our own rate of council tax and to decline the Scottish Government offer to freeze the rate for next year.”

Argyll and Bute also rejected the council tax freeze, voting for a 10 per cent increase last month. It comes as the body representing Scotland’s local authorities joined with council bodies from across the UK to call for more funding from Chancellor Jeremy Hunt ahead of the Spring Budget next week.

In a move likely to deepen tensions between councils and the Scottish Government, Cosla has written to Mr Hunt urging him to review the Budget and provide “sufficient investment to local government”.

A Scottish Government spokesperson said: “We recognise the importance of local authorities in providing vital public services across Scotland. That is why, in the face of a profoundly challenging financial situation, the Scottish Government is making available record funding of more than £14 billion to councils in 2024/25.

“However, our spending decisions remain tied to those of the UK Government which is why, in line with Scottish local authorities, we are calling on the Chancellor to use the Spring Budget to deliver a fair settlement for Scotland.”