The unfair Council Tax must end

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

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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

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Home truths on the waterfront

Western Harbour development will ease city’s housing crisis

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The National Housing Trust initiative (NHT) will deliver almost 900 affordable homes for rent in Edinburgh, Social Justice Secretary Alex Neil revealed at Western Harbour yesterday.

The City of Edinburgh Council has already delivered more than 400 NHT homes with hundreds more in the pipeline. The latest 234-home development at the Western Harbour brings the total number of NHT homes approved across Scotland to more than 2,000.

The Scottish Government’s financial innovation is unlocking strategic sites for housing development across the country, delivering more homes for less public investment.

The City of Edinburgh Council, Scottish Futures Trust and the Forth Ports Group are spearheading the Waterfront development, which is being built by Hart Builders.

Mr Neil said: “The contribution from innovative financing approaches, such as NHT, using government guarantees, loans, grant recycling and new sources of private funding is substantial and growing.

“Edinburgh has wholeheartedly embraced the NHT, the first guarantee-based model for housing in the UK, as one that can help ease the city’s housing pressures.

“People in the capital will have access to a quality home at an affordable rent, and the NHT model allows them to save for a mortgage whilst staying in the home that they may be able to buy.

“NHT, which is providing affordable homes without the need for grant subsidy, has reached a milestone with over 2,000 homes approved for construction.

“More generally, we have exceeded our target to deliver 30,000 affordable homes in this Parliament including over 20,000 homes for social rent.

“Our new target to deliver 50,000 affordable homes over the next five years is bold, credible and affordable. This is a 67 per cent increase in completed homes over the next five year period.”

Councillor Norman Work, City of Edinburgh Council said: “The City of Edinburgh Council is delighted to work in partnership with Scottish Government, Forth Ports and Scottish Futures Trust in enabling this development, which includes the 2000th National Housing Trust home across Scotland.

“The Council has committed over £100 million for NHT in Edinburgh, and this will deliver almost 900 affordable homes throughout the city. Edinburgh has a shortage of affordable housing and this 234-home development will make a significant contribution towards the regeneration of Western Harbour and creating an integrated sustainable community.

“Edinburgh is a growing city and meeting the need for new, good quality and good value homes is a major part of the Council’s Capital Coalition commitment to ensure that the city’s residents are well housed. The Council will continue to seek innovative funding solutions through collaborative working partnerships to deliver affordable homes”.

Christa Reekie, commercial director at the Scottish Futures Trust (SFT), explained: “Today’s announcement clearly illustrates the huge impact SFT’s award-winning National Housing Trust programme is having and further consolidates the partnership between the City of Edinburgh Council and SFT even further.”

Colin Macdonald of Hart Builders, part of the Cruden Group said: “We are delighted to be working with Forth Ports, Rettie & Co., the Scottish Government, Scottish Futures Trust and City of Edinburgh Council to deliver this development at Western Harbour.

“It will not only provide a secure and sustainable environment, but will also enable Hart to maintain current employment and training opportunities over the lifetime of the construction period.”

Nick Watson, Director at Rettie & Co. said: “Over the last three years Rettie and Co has enabled and coordinated the delivery of much-needed new rental stock for the City of Edinburgh delivering 296 new units.

“We are delighted to have been working constructively on the Western Harbour development with Forth Ports, Cruden, Hart Builders, the Scottish Government, Scottish Futures Trust and City of Edinburgh Council.”

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