New powers enabling councils to charge up to double the full rate of council tax on second homes come into force this week.
Councils will be able to increase the tax from today (Monday 1 April 2024) and 29 of Scotland’s 32 local authorities, including City of Edinburgh, have confirmed that second homeowners will have to pay the higher charge in their areas.
The changes aim to help increase housing availability by encouraging more homes to be used for living in. They have come into force following joint work with the Convention of Scottish Local Authorities (COSLA) and a public consultation held in 2023.
Local Government Empowerment Minister Joe FitzPatrick said: “We know there are housing pressures in parts of Scotland because of the prevalence of second homes. These new powers give flexibility to local councils, allowing them to charge the higher council tax rate on second homes if they wish and making sure they can prioritise homes for living in.
“The majority of people who responded to the public consultation last year supported these changes, which bring second homes into line with council tax policy on long-term empty homes.
“The changes demonstrate the value of the Verity House Agreement between the Scottish Government and COSLA in putting policies in place that can better meet the needs of local communities across Scotland. They also deliver important parts of the Scottish Government’s ‘Housing to 2040’ strategy and Bute House Agreement with the Scottish Green Party.”
Councillor Katie Hagmann, COSLA’s Resources spokesperson, said: “I am pleased that this important legislation is coming into force this week. COSLA welcomes the ability for councils to take the decision to increase the premium on second homes in their areas where appropriate.
“It supports the long-standing COSLA position that councillors who are closest to their communities should be empowered to take the decisions about what best works in their local communities, demonstrating the value of the Verity House Agreement.”
Care experienced children and young people will receive further support to improve attainment, attendance and wellbeing throughout their education and beyond.
The Scottish Government will provide £10.5 million to be shared by local authorities across Scotland through the Care Experienced Children and Young People Fund.
Launched in 2018, the funding is provided to local authorities and aims to improve the educational outcomes for care experienced children and young people, supported by the strategic goals of The Promise and the Scottish Attainment Challenge.
The fund has so far provided more than £60 million to deliver initiatives such as mentoring programmes and out of school support.
First Minister Humza Yousaf, said: “I am fully committed to Keeping the Promise – every single child should grow up loved, safe, supported and respected, as well as being given every opportunity to flourish and reach their full potential.
“Supporting care-experienced young people includes helping them to continue or re-enter education and The Care Experienced Children and Young People Fund plays a vital role in delivering additional support to improve educational outcomes.
“We know it is making a real difference as the latest figures show more care experienced children and young people are staying in school for longer and achieving higher qualifications.
“Improving outcomes for care-experienced young people requires a truly national effort, and the Scottish Government will continue to work with local authorities, schools and others to ensure that all young people in Scotland can meet their full potential.”
COSLA Children and Young People Spokesperson Cllr Tony Buchanan said: “Local Government is committed to keeping the Promise made to care experience children and young people by 2030.
“We have welcomed this funding, which councils have used in recent years for a number of innovative approaches responding to the diverse needs of care experience children and young people across Scotland. This has included ‘virtual’ head teacher and mentoring schemes.
“We will continue to work with the Scottish Government, across Local Government and with our partners across the education system to ensure that all children and young people grow up loved, safe and respected and achieve the best possible outcomes.”
UNISON Scotland has called for a above-inflation pay increase for local government workers as it submitted its 2024/25 joint pay claim.
The unions – UNISON and Unite – submitted the claim earlier this year, although COSLA leaders are unlikely to respond before their budget allocations are finalised. UNISON has made it clear we want a deal agreed as close to the April 1, 2024 implementation date as possible.
Local government workers are continuing to struggle with the cost-of-living crisis and UNISON has warned there is a real risk that workers will find better-paid, less-stressful work elsewhere if their pay continues to lose its value.
UNISON says that an above-inflation pay increase is the only way to maintain the staff levels necessary to deliver services to the public, looking after the most vulnerable, giving children the education they need and keeping neighbourhoods safe.
The key elements of UNISON’s claim are:
A one-year settlement that runs for the period 1 April 2024 to 31 March 2025.
For those on the lowest pay – an above-inflation increase in line with the aspiration, agreed with UNISON in November 2023, to achieve implementation of a minimum rate of pay for all local government workers of £15 per hour by 1 April 26.
An increase of 7% to all spinal column points (or an increase of £1.60 to the hourly rate whichever is greater) and related allowances.
Urgent progress to be made on how we achieve a no detriment reduction in the working week to enable members to achieve a better work-life balance.
A review of the scope and level of the Distant Islands Allowance.
No less than parity with other local government bargaining groups.
Lilian Macer, UNISON’s Scottish Secretary, said: “An above-inflation wage rise is the only way to maintain the staff levels necessary to deliver services to the public. Unless councils and schools can pay competitive rates, employees will find better-paid, less-stressful work elsewhere and new recruits will be thin on the ground.
“Our members tell us how every day how they are struggling with the cost-of-living crisis and how they are struggling to make ends meet. Local government workers must be properly rewarded for the vital services they provide.
UNISON have signed a joint letter with Cosla and other unions to the Deputy First Minister, Shona Robison MSP, saying it is clear to both employers and unions “that funding levels for councils have not kept pace with increased demand for services.”
They say “Local Government is facing a cut in real terms to both core revenue and capital budgets. As a proportion of funding allocated to the Scottish Budget, the percentage for local government has declined.”
And that “this is impacted by both the growing need of services due to demographic pressures and the ongoing cost of living crisis.”
It is in everyone’s interest to achieve a sustainable settlement on pay at the earliest opportunity.
The letter states: “Scottish Local Government settlements must be sustainable alongside the significant budget challenges facing councils and it is vital that the approach to our workforce is fair, acknowledging the essential front-line services that are delivered every day.”
Edinburgh residents, visitors, and industry back plans for a visitor levy, an engagement exercise has revealed.
Generating close to 4,000 responses in total, a four-week survey conducted by the Council over Christmas and New Year found broad support for the aims and objectives of its Visitor Levy for Edinburgh proposals.
The survey found that Capital residents and community groups are particularly keen to see some of an Edinburgh levy reinvested towards enhancing essential public services, such as keeping the city clean and moving.
Business groups, who have largely fed back via focussed engagement sessions, express greater support for dedicated destination marketing and industry support, while everyone tends to agree a levy should be simple to administer and support the protection and enhancement of Edinburgh’s heritage and world-famous cultural offering.
The full findings – which echo evidence gathered by Council officers over the last six years – will be presented to Councillors on the Policy and Sustainability Committee on Tuesday (12 March).
Members of the Scottish Parliament’s Local Government, Housing and Planning Committee will also meet on the same day to debate amendments to the national Visitor Levy (Scotland) Bill which, if set in legislation as the Visitor Levy (Scotland) Act this Spring/Summer, will allow Scotland’s local authorities including Edinburgh to charge a levy on overnight accommodation.
With much of the Capital’s scheme already researched and developed, Edinburgh is well placed to formally consult on and finalise its plans and is likely to become the first city in the UK to formally adopt a city-wide visitor levy.
Cammy Day, City of Edinburgh Council Leader, said: “Edinburgh has been lobbying the Scottish Government for more than a decade for the local powers to introduce a visitor levy. Finally, we are edging closer to this long-called for legislation.
“Throughout the years, we have repeatedly and actively engaged with our tourism and hospitality industry, as well as with residents, seeking views at various stages on the type of visitor levy Edinburgh needs.
“At every turn, we’ve had overwhelming backing at a community level and have witnessed growing support from those in the tourism and hospitality industry. This is only building as we head towards the last Parliamentary hurdle.
“We’re very proud that Edinburgh is one of the world’s most popular visitor destinations, but we’re equally aware that this success comes at a cost. A small overnight charge is common practice in other major cities and destinations, so why not here?
“The introduction of a levy will provide a funding stream that would be reinvested in the city and our infrastructure, to the benefit of our visitors and, crucially, the people who live here in our great Capital city all year round.
“While I welcome how far the Bill has come, I also echo the concerns shared by COSLA last week that it needs to allow visitor levies to be more flexible and quicker for Councils to roll out.
“Now that Edinburgh is ready to lead the introduction, I hope to see these adopted in the amendments Members of Parliament debate next week.”
Legislation which will see the introduction of a National Care Service for Scotland (NCS) has passed Stage 1 in Parliament.
MSPs have voted for the general principles of the National Care Service (Scotland) Bill which will ensure greater transparency in the delivery of community health and social care, improve standards, strengthen the role of the workforce and provide better support for unpaid carers.
The proposals include establishing a National Care Service Charter, rights to breaks for carers and provisions to enact Anne’s Law so people in care homes have the right to be visited by their families.
Social Care Minister Maree Todd said: “We need long-term, widespread transformation to fix some of the ingrained issues within the system and ensure sustainability for the future.
“We have spent considerable time working with people with lived experience on how to reform social care for the better. I’m grateful to the thousands of people who have lent their voices and I am determined to ensure the Bill delivers the positive change needed.
“Today’s vote shows that the Scottish Parliament also recognises this and I am grateful to them for bringing us one step closer to this urgent reform.
“This Bill is the biggest public sector reform since devolution and it is our chance to make meaningful change that we all agree is needed to the social care system. I know the people of Scotland will see huge benefits.”
Scotland’s largest trade union bodies have condemned the Scottish Government’s proposed National Care Service Bill as ‘not fit for purpose’ as MSPs approve the legislation at Stage 1.
The Scottish Trades Union Congress (STUC) alongside the three biggest social care unions in Scotland – UNISON, GMB SCOTLAND and UNITE – have written to the Cabinet Secretary for NHS Recovery, Health and Social Care Neil Gray outlining their shared concerns on the Bill.
The letter states that social care workers’ concerns have been ‘widely ignored’ by the Scottish Government and that, at this stage of proceedings, the Bill as drafted remains ‘firmly unacceptable’.
Last week the Scottish Parliament’s Health, Social Care and Sport Committee’s report into Stage 1 drew criticism from trade unions who outlined the ‘glaring deficiencies’ of the proposals on costs and operation of the service.
Commenting, STUC General Secretary Roz Foyer said: “It beggars belief that, despite repeated warnings to the Scottish Government, Scotland’s social care workers are still in the dark on the basic fundamentals of the new National Care Service.
“Our social care sector already suffers from insecure conditions and low pay. We cannot risk those weaknesses being carried over into any new system of nationalised care.
“We must see the Scottish Government take seriously the recommendations of the Health, Social Care and Sport Committee’s report into the Bill. This would include improving pay, terms and conditions for social care staff, including a £15 per hour minimum wage. We also need to see Scottish Government guarantees on Fair Work and sectoral bargaining in addition to full sick pay from day one of employment.
“Our social care staff are the lifeblood of our system. We value their work and it’s high time the Scottish Government does likewise.”
COSLA: “SIGNIFICANT CONCERNS” ON NATIONAL CARE SERVICE PLANS
Speaking ahead of the Stage 1 debate for the National Care Service Bill in the Scottish Parliament on Thursday 29th February, Councillor Paul Kelly, COSLA’s Health & Social Care Spokesperson, commented:“Councils have expressed significant concerns regarding current National Care Service plans and believe there is still work to do to ensure proposals can meet aspirations.
“In particular, Council Leaders are disappointed in the decision of the Scottish Government to continue to push through legislation where a power will be given to Ministers to delegate children and justice services, despite the potential disruption to services and extensive negotiations and concessions from Local Government.
“Council Leaders remain concerned that such a move risks excessive centralisation of decision-making away from local people and areas. Leaders did agree that COSLA should continue to work closely with Scottish Government to address these concerns.
“COSLA welcomes the progress which has been made in reforming some National Care Service proposals, including that local authorities will continue to play a central role in the delivery of, and accountability for care.
“There is a pressing need to improve people’s experiences of accessing and delivering care in Scotland. Although legislative and governance reform may be part of that, the reality is that national funding decisions – including the proposed council tax freeze which has not been fully funded – will further squeeze local care and social work services which are already under incredible pressure.
“Investment in social care must be seen as a priority which can enhance the wellbeing of people, of society and of Scotland.”
Having passed Stage One, the National Care Service (Scotland) Bill moves into Stage 2 where amendments will be considered by the Health, Social Care and Sport Committee before Stage 3, when the full Parliament makes a final vote on whether to pass the Bill.
The Scottish Budget has been approved by Parliament, ensuring funding can be targeted towards the missions of supporting public services, growing the economy and tackling poverty.
MSPs have passed the 2024-25 Scottish Budget Bill, with spending commitments including:
£13.2 billion for frontline NHS boards, over £1.5 billion for policing and nearly £400 million to support the fire service
Over £5 billion to help create jobs, support businesses, aid the transition to net zero and fund public transport to provide viable alternatives to car use
£6.3 billion for social security benefits, £200 million to help tackle the poverty-related attainment gap and £1.5 million to cancel school meal debt
Over £14 billion for local authorities – the highest settlement yet delivered for local government
At the heart of #ScotBudget is the social contract between this government and the people of Scotland.
Deputy First Minister and Finance Secretary Shona Robison said: “I am pleased that Parliament has approved our Budget, allowing us to enact our spending plans in the face of a deeply challenging financial situation.
“This is a Budget which stays true to our progressive values: investing in services, growing our economy, protecting vulnerable people and tackling the climate emergency.
“We have taken decisions which prioritise funding in the areas that have the greatest impact on the quality of life for the people of Scotland – despite the challenges caused in large part by the UK Government’s failure to invest in public services and infrastructure.
“Our block grant funding from the UK Government has fallen in real terms since 2022-23. Our capital spending power is due to contract by almost 10 per cent in real terms over five years – that’s around £1.6 billion in total, equivalent to the cost of building a large hospital.
“I have written to the Chancellor urging him to change course, using next week’s Spring Budget to increase funding for public services and infrastructure instead of cutting taxes.”
Scotland’s local government umbrella body Cosla fears the Budget will mean more misery for cash-strapped councils.
Scotland’s Council Leaders today (Friday) said that any interference in the democratic decision making of Councils by Scottish Government Ministers is disrespectful.
Commenting following the meeting COSLA Resources Spokesperson Councillor Katie Hagmann said: “Council Leaders were absolutely clear today that it is not appropriate for Scottish Government Ministers to interfere in the democratic decision making of Councils.
“Leaders also reaffirmed in the strongest possible terms the principle that it should be for individual Local Authorities to set their own level of Council Tax without sanction or financial detriment imposed by Scottish Government.
“Leaders were clear that given the financial situation in which councils find themselves as a result of the proposed Scottish Budget, recurring penalties in relation to setting council tax levels should not be applied.
“I have been asked to seek confirmation from Scottish Government that there will be no further Council Tax freezes for the remainder of this Parliament.”
Following a special meeting yesterday (Friday 9th February) Council Leaders are seeking an urgent further meeting with the Deputy First Minister in relation to the Budget settlement for Scottish Local Government, highlighting the dire consequences of the Government’s current spending plans on communities throughout Scotland.
Commenting following the meeting the COSLA Resources Spokesperson Councillor Katie Hagmann said: “Leaders were clear today that an urgent meeting with the Deputy First Minister is a priority.
“Leaders expressed anger at the Budget setting timetable which has left Councils unable to set their budgets due to a lack of certainty from Scottish Government and as a result of having to wait until UK Government Spring Statement before knowing what additional funding could be passed on.
“In addition, there was a clear direction from Leaders to seek restoration of the £63m cut to the core Local Government budget on behalf of their communities and the essential services they rely on at the meeting with the DFM.
“Leaders also agreedthat the council tax freeze should be on a voluntary basis with agreement that the £147m, already earmarked by Scottish Government for this purpose, is distributed to all Councils with flexibility to raise Council Tax by up to 5%. There should also be no penalty or reduction in funding in line with the principles of the Verity House Agreement.
“Leaders were clear that Councils should be given full flexibility of funding to deploy within Schools, and the wider community, to provide the right support for the diverse needs of children and young people across Scotland, therefore recognising that a wide range of people who contribute to a child’s education.
“Finally, Leaders agreed to seek a guarantee that the £45m Barnett consequentials resulting from the UK Government’s recent announcement will be passed in full to councils, also in accordance with the Verity House Agreement so it can be used to address local priorities.”
Legislation which would give councils the power to introduce a visitor levy to raise funding for local tourism facilities and services has passed its first vote in Parliament.
MSPs have voted to endorse the general principles of the Visitor Levy (Scotland) Bill, which would enable councils to apply a levy on overnight stays in line with many tourist destinations across Europe. All money raised would be reinvested in facilities and services that are substantially used by visitors, benefitting tourists and local economies.
The proposals were backed in a Scotland-wide consultation led by the Scottish Government. Should they wish to use the powers, councils would be required to consult local communities, businesses and tourism organisations on whether a visitor levy should be brought in and how any revenue should be spent.
Representatives from the tourism industry, COSLA, the Scottish Government and other partners have formed an expert group to consider how the legislation could be best implemented if passed.
Speaking after the Stage One vote in Parliament, Public Finance Minister Tom Arthur said: “I strongly believe that a visitor levy can be a force for good, offering councils the opportunity to use the proceeds to invest in their local economy, bringing benefits to residents and visitors alike.
“This Bill is about giving local government a new power, which they can use as appropriate. It fits with our ambition of fiscally empowering local government and strengthening local democracy, and the New Deal for Business and the New Deal for Local Government are at the heart of the Scottish Government’s approach to this measure.
“We have already taken on board the helpful input we have had from business, councils and others and I am committed to continuing that meaningful and constructive engagement as we move forward.”
COSLA’s Resources Spokesperson Councillor Katie Hagmann said: “I am delighted to see the progression of the Visitor Levy Bill through Parliament.
“The introduction of visitor levy powers is a small but significant step towards maximising the revenue raising powers available to local government, enabling those closest to the community, your democratically elected councillors, the power to decide what works best for their local communities, and recognising the great diversity of needs across Scotland.
“The revenue raised by the levy has the potential to provide much-needed additional investment in our communities, in areas from the natural environment to cultural and leisure facilities, at a time when local government is facing significant strain on resources. Meanwhile, we are keen to ensure that this additional revenue stream helps us to maintain Scotland’s position as a world-leading tourist destination.
“We are fully committed to further joint work with the Scottish Government as the Bill continues its journey through Parliament, as well as continued engagement with colleagues across our important tourism industry.”
Having passed Stage One, the Visitor Levy (Scotland) Bill will be considered for line-by-line amendments by the Local Government, Housing and Planning Committee before Stage Three when the full Parliament considers further amendments and makes a final vote on whether or not to pass the Bill.
If passed, the legislation will give local authorities the power to introduce a visitor levy in all or parts of their area. The levy would be a percentage of the overnight accommodation cost, with the rate set by the local council.
The levy would be collected by the accommodation providers and remitted to the relevant local authority. It would apply to almost all types of overnight accommodation, including hotels, self-catering accommodation and campsites.
Of the 27 European Union member states, 21 charge occupancy taxes.
