Tag: council tax

Minister urges those eligible to apply for Council Tax support

Scottish households have saved more than £3.5 billion in council tax since the Council Tax Reduction (CTR) scheme was introduced a decade ago.

The latest figures published by the Scottish Government show 460,860 recipients received CTR in October 2023, meaning one-in-five households were benefiting from the scheme.

People on low incomes are eligible for CTR if they live in Scotland – there is no equivalent benefit in England where most councils require each household to contribute a minimum amount of council tax, irrespective of ability to do so.

People who receive CTR save on average £800 a year and become eligible for up to 35% off their water and waste charges.

As part of the 2024-25 Scottish Budget the Deputy First Minister also made £144 million available to enable local authorities to freeze Council Tax rates at their current levels, benefitting every Council Tax payer in Scotland.

Public Finance Minister Tom Arthur said: “The Council Tax Reduction scheme celebrated its tenth anniversary in April and these latest figures show the scale of support it has provided to people in Scotland over the last decade.

“Our social contract with the people of Scotland means we are committed to giving an extra helping hand through targeted additional support to those who need it most and it is important everyone is aware of the help that is available to them. 

“Some people are also eligible for other council tax discounts or sometimes full exemptions, including students, people with disabilities and carers amongst others.

“I urge people to check their eligibility for council tax reduction , council tax discounts and other financial support by visiting our online resources or by contacting their local council.”

People can check whether they are eligible for Council Tax Reduction through mygov.scot or by contacting their local council.

Details of other help available including extra financial support or for things like food, heating and electricity can be found on the Scottish Government’s cost of living crisis support website.

Legislation passed on council tax on second and empty homes

Increasing housing availability using the tax system

New powers enabling councils to charge up to double the full rate of council tax on second homes have been agreed by the Scottish Parliament. Councils will be able to increase the charges from 1 April 2024, with rates for the first year being based on those from 2023-24.

The change brings second homes into line with council tax policy on long-term empty homes and aims to increase housing availability by encouraging more homes to be used for living in.

New owners of properties that have previously been empty for more than twelve months will now have a six-month grace period, during which they will be protected from paying double the full council tax rate, with the potential for the six months to be extended by councils. This is subject to evidence that renovations or repairs are being undertaken by the owner with a view to the building being brought back into use.

Public Finance Minister Tom Arthur said: “I’m pleased Parliament has backed this important legislation. These changes to council tax were a commitment made in our Programme for Government and aim to make sure the tax system works as an incentive to prioritise homes for living in.

“A majority of those who responded to our consultation earlier this year supported councils being able to charge a council tax premium on top of regular rates for second homes.

“By protecting those renovating an empty home from paying the empty home premium, we are incentivising new ownership and giving them time to organise and undertaken the work necessary to bring it back into use.”

Councillor Katie Hagmann, COSLA’s Resources Spokesperson, said: “I am delighted that this important legislation has now been given Parliamentary approval. COSLA very much welcomes the ability for councils to take the decision to increase the premium on second homes in their areas.

“This supports our long-standing 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.”  

The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2023

A second home is classed as any home that is not used as someone’s primary residence but that is occupied for at least 25 days in a year.

Latest figures show that at the end of September 2022, there were 24,287 second homes in Scotland.

Second homes are currently subject to a default 50% discount on council tax. However, local councils can vary council tax charges and the majority already charge second home-owners the full of council tax, the maximum currently allowed.

Council Tax ‘bombshell’ would hit 92,000 Edinburgh households – Boyack

Scottish Labour MSP Sarah Boyack has branded the SNP government’s consultation on Council Tax a “scandal”, revealing that the changes would hit 92,971 households in Edinburgh.

The SNP government is currently consulting on plans to hike Council Tax for properties in bands E to H – which would hit 39% per cent of households in Scotland’s capital.

People in the area could face increases of up to around £800.

This consultation follows years of ‘brutal’ budget cuts to Council budgets by the SNP government.

Scottish Labour MSP Sarah Boyack said: “Years of brutal cuts by the SNP has local services in [AREA] at breaking point, and now the government wants to plug the gaps with eye-watering Council Tax hikes of up to around £800.

“It is a scandal that ordinary Scots are once again being asked to pay more while getting less in return.

“This damaging Council Tax bombshell will hit more than 92,000 households in Edinburgh during the worst cost of living crisis in decades, piling pressure on people already facing impossible financial decisions.  

“Scots struggling with rising housing costs should be getting support from their government – but instead they are being asked to foot the bill for the SNP’s failure.

“Labour will stand up for people struggling with soaring living costs and fight for a fair deal for Edinburgh.”

BUT WHAT WOULD LABOUR ACTUALLY DO? REPLACE THE COUNCIL TAX? – Ed.

Local AuthorityHomes in bandsE to H % of homes affected  Potential increase  
Scotland715,31228% 
Aberdeen City32,65329%£821.11
Aberdeenshire50,87343%£768.12
Angus13,15923%£725.82
Argyll & Bute14,96332%£815.41
City of Edinburgh92,97139%£798.04
Clackmannanshire6,41326%£777.79
Dumfries & Galloway18,87026%£735.84
Dundee City10,43815%£819.39
East Ayrshire11,44720%£819.95
East Dunbartonshire25,47054%£780.38
East Lothian18,19336%£791.39
East Renfrewshire22,62357%£780.14
Falkirk18,08024%£751.81
Fife45,05626%£763.58
Glasgow City49,50117%£826.32
Highland34,14329%£786.73
Inverclyde7,14819%£788.16
Midlothian12,37429%£834.99
Moray9,55522%£788.67
Na h-Eileanan Siar1,55911%£711.53
North Ayrshire14,38721%£800.48
North Lanarkshire30,48220%£728.08
Orkney Islands1,91817%£754.78
Perth & Kinross26,90637%£773.78
Renfrewshire22,49226%£791.69
Scottish Borders16,51329%£747.56
Shetland Islands1,87117%£694.91
South Ayrshire18,49734%£801.05
South Lanarkshire41,06527%£717.07
Stirling17,65544%£816.68
West Dunbartonshire7,40317%£771.19
West Lothian20,63425%£766.77

Source: Chargeable Dwellings: Sep 2022 data: 

https://www.gov.scot/publications/council-tax-datasets/

Scottish Government Council Tax Consultation:

https://www.gov.scot/news/council-tax-consultation/

Scottish Government to consult on second homes council tax hike

Councils empowered to prioritise ‘homes for living in‘

Plans to enable councils to raise the amount of council tax paid on empty and second homes will be included in a new consultation to help increase housing availability.

First Minister Humza Yousaf will announce proposals at the Scottish Trades Union Congress today (Monday 17 April) which could give councils powers to charge up to double the full rate of council tax on second homes from April 2024.

The proposed change would bring second homes into line with long-term empty homes from next year. The joint consultation with COSLA will also seek views on further powers to charge more than double rate on both empty and second homes in future years.

Latest figures show that in January 2023 there were 42,865 long-term empty homes in Scotland.

The consultation will also ask for views on whether there should be changes to the definition of when a property offering self-catered accommodation becomes liable for non-domestic rates.

The plans will deliver on commitments in the Scottish Government’s Housing to 2040 strategy and Bute House Agreement with the Scottish Green Party to enable councils to prioritise homes for living in and manage the impact of second or long-term empty homes.

Ahead of the consultation opening, the First Minister said: “We want everyone in Scotland to have an affordable home that meets their needs and this work to improve the availability of sustainable long-term housing opportunities is a core part of that.

“By recognising the important role councils have in considering local needs, these proposals aim to strike a balance between good housing supply and helping communities to thrive and benefit from tourism.

“I encourage anyone who is interested to respond to the consultation as we try to prioritise homes for living in, seeking a fair contribution to local services from everyone and recognising the benefits to local economies from self-catering accommodation and second homes.

“All responses will be carefully considered before legislation is introduced to the Scottish Parliament.”

COSLA Resources Spokesperson Councillor Katie Hagmaan said: “Local government in Scotland is committed to supporting access for everyone in Scotland to an affordable home.

“That is why we are pleased to be launching this joint consultation, as we work to meet the shared aim of creating the right balance to increase the availability of housing and a taxation system that is fair for the tourism industry.

“We also welcome the greater fiscal empowerment for councils to reflect local circumstances this would introduce. Any additional funding created by these changes under consultation will enable councils to invest in local needs and support sustainable communities.

“We are pleased to be jointly working with the Scottish Government on this vital area of work and we look forward to considering the responses.”

The consultation opens today 1- 7 April 2023 – on the Scottish Government’s consultation page and is expected to run for 12 weeks until 11 July 2023.

Housing statistics: Empty properties and second homes

Help with council tax bills

Minister urges people to check eligibility for support

People struggling to pay their council tax during the cost of living crisis are being encouraged to check if they are eligible for money off their bill.

The Council Tax Reduction (CTR) scheme is unique to Scotland and helps people on low incomes save an average of £750 a year on their council tax bill. Those eligible can also save up to 35% on their water and waste charges.

The latest figures published by the Scottish Government show 455,220 recipients received CTR in November 2022, meaning around one-in-five households were benefitting from the scheme.

Public Finance Minister Tom Arthur visited Citizens Advice and Rights Fife yesterday to meet staff advising people on dealing with the cost of living crisis. He said: “We know that this cost of living crisis is hammering people on lower incomes and those already living in poverty. It is vital that people know where to go to get advice and support.

“The Council Tax Reduction scheme will celebrate its tenth anniversary in April and Scottish households have saved more than £3 billion on their council tax since it was introduced. The support it provides has never been more important and I urge people to check whether they are eligible.

“Information can be obtained from your local Citizens Advice Bureau – like the excellent facility I visited in Glenrothes today – local councils and the Money Talk Team service promoted by the Scottish Government, as well as online.”

Chief Executive Officer of Citizens Advice and Rights Fife, David Redpath, said: “We are experiencing unprecedented demand for advice on how to maximise incomes to the cost of living crisis.

“Council Tax Reduction plays a key role in making budgets stretch further and we encourage people to check if they are eligible for a reduction, discount or even an exemption from paying council tax.

“Citizens Advice and Rights Fife is here to help people find ways to ease the cost of living whether that is council tax or any other daily living costs.”

Scottish Conservative council election manifesto pledge to increase the discount for single person households

Lothian MSP, Miles Briggs, has claimed that almost 160,000 people across Edinburgh and the Lothian’s would benefit from increasing the council tax discount for single occupancy households, from 25% to 35%.

Figures obtained by SPICe, the Scottish Parliament research department, show that there are currently 159,490 households across Edinburgh and the Lothian’s who receive the single occupancy household discount. Of which 98,000 are in Edinburgh, 17,218 in East Lothian, 13,967 in Midlothian and 30,305 in West Lothian.

A central Scottish Conservative council election manifesto pledge is to increase the discount for single person households from 25% to 35%.

The average property in local authorities across Scotland is band D. This means that the average single person household in Edinburgh would save an additional £138 per year, in West Lothian £131 per year, in Midlothian £144 per year and East Lothian £134 per year.

The total saving for single occupancy households in Edinburgh would be approximately £13,524,000 in West Lothian £3,969,955 in Midlothian £2,011,248 and in East Lothian £2,307,212. Across all four local authorities the savings for single household properties would be £21,812,415.

Lothian MSP, Miles Briggs, said: “Increased council tax and the rise in the cost of living, all hit single person households the hardest, with more and more people struggling to get by.

“The Scottish Conservatives have committed to and will continue to push for single occupancy households to receive 35% council tax discount, a 10% increase from the current discount of 25%.

“Across Edinburgh and the Lothian’s this would benefit almost 160,000 people, alleviating some of the pressure from council tax hikes.

“Single parents, young professionals and elderly people living alone would all benefit from an increase to the single occupancy household discount.”

Tables for tax bands in each local authority and savings per tax band:

Edinburgh

BandCouncil TaxSaving
A£919.17£92
B£1,072.36£107
C£1,225.56£123
D£1,378.75£138
E£1,811.52£181
F£2,240.47£224
G£2,700.05£270
H£3,377.94£338

98,000 x 138 = £13,524,000

Edinburgh council tax payers pay £587 less on average than those in England

Official figures reveal that council taxpayers in Edinburgh pay on average £587 a year less than they would in Tory-run England and £398 less than in Labour-run Wales.

Across Scotland, council tax payers get the best deal in Britain. The figures also demonstrate that the savings for Scottish council tax payers in comparison to what those in England and Wales will pay is going to be even greater next year.

  • The research shows that Band D council tax payers in Edinburgh pay £1,379 which is £587 less than the equivalent in England and £398 less than in Wales.
  • Council tax across Scotland is lower than in England – for 2022/23, the average Band D Council Tax bill in Scotland is £1347 compared to £1966 in England and £1777 in Wales.
  • For 2022/23, the average charge for all property bands, including E, F, G and H, is between £413 and £651 lower in Scotland than England.
  • The average council tax increase in Scotland for 2022/23 was 3.0%, compared with 3.5% in England and 2.7% in Wales.

Commenting, SNP MSP Gordon MacDonald said: “Council taxpayers in Edinburgh are paying £587 less than they would in England. In fact, council taxpayers across Scotland get the best deal in Britain.

“On top of the £150 council tax rebate announced last month by Finance Secretary Kate Forbes, this demonstrates that the Scottish Government is doing all it can within its restricted powers and resources to keep as much money as possible in the pockets of Scottish families.

“Council tax bills in Edinburgh are so substantially lower because the SNP has such a strong record of delivering the best value. For an entire decade the SNP Scottish Government froze the cost of council tax – despite Westminster continuing to slash the Scottish budget.

“The SNP Scottish Government is also rolling out a social security system based on fairness and respect. It has introduced the ‘game-changing’ Scottish Child Payment – which will deliver £25 per week per child for the lowest income families in Edinburgh – and we are increasing a range of Scottish social security benefits by six per cent.

“It is a glaring contrast with the Westminster Tory Government which, far from protecting hard-pressed families from the spiralling Tory cost of living crisis, it callously cut vital Universal Credit support by £20 a week for the poorest families.

“This is a real tale of two Governments and the people of Scotland will have the opportunity to send a message to Boris Johnson by rejecting the Tories in the local elections on May 5.”

‘A tale of two governments’? It’s worth pointing out that neither Boris Johnson nor Nicola Sturgeon will be standing in May’s LOCAL government elections. These elections are supposed to be about who runs our council services!

Edinburgh is currently under the control of an SNP – Labour ‘Capital Coalition’ partnership. Do you think Edinburgh taxpayers are really getting a ‘good deal’? – Ed. …

Children’s Society welcomes council tax exemption for Scottish care leavers

Charity The Children’s Society has welcomed First Minister Nicola Sturgeon’s announcement that all care leavers in Scotland will be exempt from council tax. Continue reading Children’s Society welcomes council tax exemption for Scottish care leavers