Copyright scotsman
Owners of Scotland’s most expensive homes could face a council tax hike of up to £3,000 under draft plans that would see those living in the lowest-value homes saving hundreds of pounds a year. The Scottish Government has published a consultation on proposals to overhaul council tax, after first promising changes in 2007. But opponents have claimed the proposals “could see Scots clobbered with yet more jaw-dropping tax hikes under the SNP”, with one potential option leaving the most expensive homes in the country with a bill of more than £6,500. The draft options include revaluing properties, which are currently charged based on their 1991 value, and increasing the current eight charging bands, A-H, to either 12 or 14. The proposals have been drawn up by the Scottish Government and Cosla, with SNP Finance Secretary Shona Robison insisting any changes must be informed by “robust evidence and wide public debate”. Ms Robison has also stressed that her government is “not advocating for a specific reform” but is examining whether a “consensus around a unified position on council tax could be achieved”. READ MORE: SNP's rent controls approved as empty and second homes poised for council tax hikes Under the 14-band “progressive proposal”, one of several options drawn up by the Institute for Fiscal Studies (IFS), after a revaluation of property values, the model would add more bands to “create a more gradual increase in council tax across property types”. But the model points to new upper bands, J and K, for “very high-value properties”, which the Scottish Government’s consultation stresses “provides a smoother progression from the lowest to the highest-value homes”. The document adds: “Under this design, households in the lowest-value homes (Band A1) would see a reduction in rates equivalent to an estimated £260 per year based on average 2025-26 council tax charges across Scotland. Homes in Bands A2 to C would see reduced rates equivalent to an estimated £130 to £200. READ MORE: SNP 'incompetence and cuts' blamed as 'eye-opening' report reveals 'titanic' council funding gap “Properties in the highest band (K) would face higher rates equivalent to an estimated £2,750 more per year.” A similar model with 12 bands has also been tabled, which would potentially save those in the lowest-value homes an average of £170 a year compared to this financial year, while the highest-value band could face a hike of an estimated £1,600. The consultation has also raised the question of whether a revaluation takes place nationally or locally, which would take account of different housing markets in different parts of the country. Ms Robison said: “Any future changes to council tax must be informed by robust evidence and wide public debate. As part of our joint programme of engagement with Cosla, we are seeking views on these matters. “The Scottish Government is not advocating for a specific reform, rather the aim of this work is to examine whether consensus around a unified position on council tax could be achieved. Any reform proposals that come forward in the next parliament would clearly be contingent on securing that unified position, would require a long delivery period and would likely not be complete in this decade." Katie Hagmann, Cosla resources spokesperson, said: that “reform is long overdue”. READ MORE: Scottish politics has never been more important - get The Steamie newsletter today Scottish Conservative finance and local government spokesperson, Craig Hoy, said: “These proposals could see Scots clobbered with yet more jaw-dropping tax hikes under the SNP. “The last thing Scots struggling with rising bills need is the prospect of another huge rise in council tax looming over them.”
