Parliament backs fairer council tax

The Scottish Parliament has approved legislation that will protect household incomes, make local taxation fairer and that paves the way for an additional £500 million to be invested in education over this parliament.

The overwhelming vote in favour of the council tax order is the first step in the process of reforming council tax with the Scottish Government committing to further discussions on fair and progressive taxation over this Parliament.

Speaking after the vote Cabinet Secretary for Finance and the Constitution Derek Mackay said:

“The steps we have taken today pave the way for additional investment in schools right across Scotland to help close the attainment gap and are the first step in a journey of reform to make local taxation fairer.

“Our changes also make council tax more progressive and ensure that three quarters of households will see no rise in their bills as a result of these reforms.

“In fact our reforms ensure that while those who can afford to pay more will rightly see a moderate increase in their bills, all households will pay less on average than under council tax regimes in England, and less than they would have done if the Scottish Government’s council tax freeze had not been in place.

“This is a significant step for Parliament and will enable us to significantly increase investment in Scotland’s schools.

“It is disappointing that Parliament failed to support steps to ensure that any future reforms are based on the principle of fair and progressive taxation, but this government will remain committed to that principle.”

Background

The Scottish Parliament approved the Council Tax (Substitution of Proportion) (Scotland) Order 2016.

More information on the council tax plans is available at: http://news.gov.scot/news/council-tax-reform