Scotland’s Finance Secretary, Shona Robison, has received a warning from Holyrood’s Local Government Committee regarding the possibility of imposing another council tax freeze. The committee expressed widespread opposition to such a move, highlighting concerns raised by local authorities.
Last year, then First Minister, Humza Yousaf, unexpectedly announced a council tax freeze at the SNP conference. While Robison, who was also Finance and Local Government Secretary at the time, claimed that the freeze was fully funded, Scottish Green MSP Ariane Burgess, the convener of the committee, stated that councils did not agree with this assessment.
According to the umbrella body Cosla, the council tax freeze decision removed local discretion to raise income, hindered the opportunity to invest in services, and added complexity to the budget-setting process. This came at a time when councils were already facing challenging decisions regarding the level of savings to make.
Burgess emphasized the importance of meaningful engagement with local authorities before making any decisions regarding council tax freezes in the future. She also called for agreement between the Scottish Government and Cosla on what a ‘fully-funded’ freeze entails.
The implementation of the Verity House Agreement (VHA), aimed at improving the relationship between the Scottish Government and councils, has been met with overwhelming negativity by councillors. A consultation conducted by the Local Government Information Unit (LGIU) revealed that only 8% of respondents were satisfied with the progress of the VHA, while 10% believed it had improved relations.
The Mercat Group, a network of council chief executives, criticized the VHA agreement, stating that it contradicted the principles of devolving power, sharing responsibility, and achieving parity of esteem between central and local government. The lack of consultation with local government before announcing the council tax freeze last year was seen as a breach of trust and respect within the VHA.
It is clear that there are significant concerns regarding the Scottish Government’s approach to council tax freezes and its relationship with local authorities. The need for collaboration, transparency, and meaningful engagement in decision-making processes has been underscored by the Local Government Committee and other stakeholders. It remains to be seen how the Scottish Government will address these issues and work towards building a more positive and productive relationship with councils.
