Council tax frozen

Council tax rates will be frozen in the next financial year to support people struggling with the effects of high inflation, the First Minister has announced.

The freeze will benefit every Council Tax-payer in Scotland at a time when rising prices are putting significant strain on household finances. The Scottish Government will fully fund the freeze to ensure councils can maintain their services.

First Minister Humza Yousaf said:

“Today’s announcement will bring much needed financial relief to those households who are struggling in the face of rising prices. Council tax is already lower in Scotland than elsewhere in the UK, and some 2.5 million households will now benefit from this freeze.

“Of course, the public sector across the UK is facing budget pressures as a result of UK Government austerity, and we know councils are facing financial challenges themselves. That’s why the Scottish Government will be fully funding this freeze to ensure they can continue providing the services on which we all rely. This is on top of the real-terms increase to local government revenue funding this financial year.

“The Scottish Government remains wholly committed to the Verity House Agreement, and as part of that are continuing work with COSLA on a new fiscal framework for local authorities. We are also working on longer term reforms to the council tax system, which are being considered by the working group on local government funding that we are chairing jointly with COSLA.”

Background

The Scottish Government has increased the resources available to local government in 2023-24 by more than £793 million, a real-terms increase of £376 million or 3%, compared to the 2022-23 Budget figures.