Tag: finance

On the eve of Edinburgh’s crucial budget meeting, JIMMY BURNETT argues that the SNP government must end the Council Tax freeze – NOW

Local Government is in crisis. And it is a crisis for which councils bear little or no responsibility.

The Scottish Government has made successive cuts in support for local government, culminating in this year’s savage £550 million reduction. This coupled with the continuing imposition of the SNP-enforced nine year long council tax freeze, has forced local councils, like Edinburgh, into implementing cuts on a scale, never before envisaged.

And to make matters worse, the council tax freeze has seen the better off benefit by three times as much as people at the bottom of the scale – and of course the poorest section of society, who receive full or partial council tax relief, save not one penny.

In addition, as pointed out by Unison, councils, in dire need of alternative resources, have partially plugged the gap, by increasing service charges. Charges which of course, hit the lower paid harder, as the recent “ Close the Gap” report highlighted.

Since 2007, 40,000 jobs have gone in local authorities across Scotland.
Vulnerable and older peoples service have been particularly hit. 13,000 fewer people receive a Home Care Service than was the case a mere six years ago. Service charges for vulnerable people have risen by 11.5 million since 2010.

Here in Edinburgh, the Council is being forced to inflict almost £90 million cuts on crucial services. Yet they cannot even consider raising their council tax , without immediately receiving further cuts in resources from the Scottish Government.

Lets have a quick look at the figures. A council tax rise of 3% in Edinburgh would raise 7 million, a relatively small sum, but still enough to make some contribution to saving crucial services. This would cost Band A households 45p per week, Band D householders 67p per week and Band H householders – those in the highest valued houses – £1.35 per week.

Surely not too much to ask, when people are dying in Edinburgh while waiting for care packages to be provided?

But there is a catch. A 3% rise would in reality, unless the Scottish Government chose to lift their penalty system, would raise precisely nothing for services: the Scottish Government would immediately claw back £7 million from the council. So much for local democracy and accountability!

Since 2,007, the Scottish Government, have chosen to earmark a staggering £2.5 billion to finance the council tax freeze. This is public money. Money being spent on services , but only if councils agree to freeze their council tax. As a result councils across Scotland have been denied their democratic right to raise taxes locally and be accountable to the electorate for that rise.

So the council tax freeze is unfair. The better off have had savings three times the level of the less well off.

The council tax freeze has deprived councils of their democratic right to raise much needed resources for local services.

The Scottish Government-imposed council tax freeze is anti democratic, as it removes local accountability.

Even at this late stage, the Scottish Government, AT NO COST TO THEM WHATSOEVER, could choose to end this unfair freeze. And they could, and should, allow councils to raise their tax with no penalty clawback.

But they are unlikely to do so. And have said as much. This is an election year, and therefore, it appears, that because they believe the freeze to be popular, they are prepared to see services sacrificed, jobs lost and people suffer.

And the irony is that they appear to be able to do so, with virtually no criticism, whilst it is councils, who they are forcing to make cuts, who are bearing the brunt of the ire of the general public!

Jimmy Burnett was Housing and Finance Chair of Edinburgh District Council