The Funding of Local Government in Scotland, 2024-2025

How did we estimate how much Council Tax each council would receive?

The Scottish Government then estimated how much it would assume each council might raise from Council Tax.

Councils collect Council Tax based on an historical valuation of houses, with houses placed into one of eight bands, A to H. The number of houses in each band determines how much each council can raise.

In 2023-24, Council Tax for a Band D property in different councils varied between £1,261 and £1,515. But, to calculate how much we assume they will raise, we assume that they all charge the same amount; for 2024-25 this was £911. This means that they all raise more income than we assume. We also assumed that there would be an increase in the total number of houses. We did not assume any Council Tax rise in 2024-25.

The revenue raised from Council tax in 2023-24 was £2.8 billion.

Assumed income from Council Tax, £ billions (the actual amount raised is higher).

All councils set higher Council Tax rates than those assumed in our calculations. They can spend the extra on providing services. 

Council Tax rates were frozen between 2008-09 and 2016-17, in 2021-22, and again in 2024-25, for which they received additional support.