Council tax set to increase across Scotland

Council tax is set to increase across Scotland after the Scottish Government chose not to extend its cap.

But First Minister John Swinney says local authorities should not increase rates by “substantial amounts”.

Finance secretary Shona Robinson outlined her Budget on Wednesday, which she said was “filled with hope for Scotland’s future”, including an end to the two-child benefit cap.

She announced a more than £1bn uplift for local authorities, but warned that levies should be kept low, after a council tax was frozen over the last 12 months.

Swinney told STV News that councils “have no need to increase” taxes significantly after “fresh, uncommitted resources” were pledged.

“This is all part of what I’m trying to do to strengthen out public services in our communities and to make sure that public authorities, whether in the health service or in our council, are well supported by government finance to make sure they can deliver the services that will meet the needs of people in our communities,” the First Minister said.

“And to do so, particularly in the case of local councils, without increasing the council tax by significant amounts.”

Scottish council leaders will consider the Budget when they meet on Friday. An analysis document published by local government body COSLA found there had been a £337m increase in funding that wasn’t ringfenced.

The Budget also announced income tax rates in Scotland have been frozen until 2026 and free school meals will be extended to primaries 6 and 7 in Scotland for low-income families.

The Budget, the first since John Swinney took office, comes against a backdrop of dire public finances, somewhat alleviated by a £3.4bn increase in the next financial year caused by the UK Government’s spending decisions outlined in October.

The minority Scottish Government needs at least one other party to back the Budget for it to pass, but none has yet committed to supporting it.