Holyrood backs Council Tax reform

‘local taxation is broken and in this five-year Parliament we have an opportunity to fix it’ – Scottish Green MSP Andy Wightman

The Scottish Parliament has approved legislation that will protect household incomes, make local taxation fairer and that paves the way for an additional £500 million to be invested in education over this parliament.

Holyrood voted to increase the top four bands of council tax – despite the final order criticising the government. SNP MSPs were forced to vote for a motion noting that they had failed to make radical enough changes, after opposition parties led by the Greens amended the order.

The changes will see top council tax bands E – H rise from April next year.

The overwhelming vote in favour of the council tax order is the first step in the process of reforming council tax with the Scottish Government committing to further discussions on fair and progressive taxation over this Parliament.

Speaking after the vote Cabinet Secretary for Finance and the Constitution Derek Mackay said: “The steps we have taken today pave the way for additional investment in schools right across Scotland to help close the attainment gap and are the first step in a journey of reform to make local taxation fairer.

“Our changes also make council tax more progressive and ensure that three quarters of households will see no rise in their bills as a result of these reforms.

“In fact our reforms ensure that while those who can afford to pay more will rightly see a moderate increase in their bills, all households will pay less on average than under council tax regimes in England, and less than they would have done if the Scottish Government’s council tax freeze had not been in place.

“This is a significant step for Parliament and will enable us to significantly increase investment in Scotland’s schools.

“It is disappointing that Parliament failed to support steps to ensure that any future reforms are based on the principle of fair and progressive taxation, but this government will remain committed to that principle.”

Andy Wightman MSP, Local Government spokesperson for the Scottish Greens, welcomed the vote which enables changes to Council Tax and saw the Scottish Government forced to accept widespread concerns about their approach to local taxation.

Ministers had attempted to amend Mr Wightman’s amendment to the Government motion, in a bid to delete modest criticisms of the Government.

But at Decision Time, opposition MSPs supported Mr Wightman’s amendment and the amended motion was then approved after Green, Labour and SNP MSPs backed it. The Tories and Libdems voted against it.

Andy Wightman, Local Government spokesperson for the Scottish Greens and MSP for Lothian, said: “This minority Government must expect their record to be challenged, and Greens will always seek to do this in a constructive way. At no point have we ever stood in the way of the changes to Council Tax as they are better than nothing. It has been bizarre to see SNP Ministers threatening to vote down their own policy simply because they don’t like fair criticism.

“Level heads prevailed tonight and educational attainment will be boosted by £100 million. But what has also prevailed is an agreement by all Holyrood’s five parties that the current system of local taxation is broken and that in this five-year Parliament we have an opportunity to fix it.”