Council tax Scotland: 'Eye-watering' proposals to increase council tax for a quarter of Scots slammed as 'terrifying'

Scottish Government proposes hiking up council tax by up to 22.5 per cent for those in the most expensive houses

Proposals to introduce “eye-watering” tax increases for a quarter of Scots have been slammed as “terrifying” for those struggling with the cost-of-living crisis.

The Scottish Government is looking to change the council tax system so those living in the most expensive houses have to pay more. This comes after the existing system was criticised for being “unfair”.

Now the Government has confirmed it is looking to potentially increase council tax by up to 22.5 per cent for those in bands E, F, G and H over the next three years.

Cuncil tax could rise by as much as 22.5 per cent for the most valuable homes in Scotland Picture: RobertRay/Getty

The Scottish Conservatives warn this could lead to people paying “enormous” tax bills, and councils potentially being forced to cut local services.

Back in 2015, the Commission on Local Tax Reform said the council tax arrangements mean those in band H properties are paying three times as much as those in band A, despite their properties being worth on average 15 times more.

The Government has put forward proposals to change this by increasing council tax for those in band H properties by 22.5 per cent to an average of £4,251 a year.

It also suggests having band G going up by 17.5 per cent to £3,259, band F increasing by 12.5 per cent to £2,590, and putting band E up by 7.5 per cent to £2,001.

Council tax bills could increase for those in the most expensive properties. Image: Shaun Wilkinson.

Liz Smith, the Scottish Conservatives’ finance and local government spokeswoman, said households should not be bearing the brunt of filling the “black hole” caused by the SNP in council finances.

She said: “These bombshell proposals from the SNP-Green Government will terrify people struggling to cope with the global cost-of-living crisis. Local authorities are in dire straits due to savage cuts being imposed on their budgets year after year by SNP-Green ministers.

“Typically, those ministers are once again passing the buck to councils to make impossible decisions.”

The Government has, however, defended the proposals, saying 75 per cent of people in Scotland will not be affected. It is now asking members of the public to share their views on the plans by launching a consultation on the matter.

Public Finance Minister Tom Arthur

Despite this, it is understood the Government is not wedded to the proposals in the consultation, much of which dates back to the previous leadership.

Public finance minister Tom Arthur said: “We have listened to calls for the council tax system to be made fairer, as presently more of the burden falls on those in the lower bands when considered as a proportion of the value of their property.

“The changes would affect around a quarter of properties and, even after they are taken into account, average council tax in Scotland would still be less than anywhere else in the UK.”

Mr Arthur added: “We know that many people are struggling with their finances and our council tax reduction scheme is there to ensure nobody has to pay a council tax bill they cannot be expected to afford, regardless of what band they are in.”

The consultation will run for ten weeks until September 20. Any changes to council tax would be phased in over three years from April 2024.