Joint Working Group on Sources of Local Government and Council Tax Reform: February 2024

Attendees and apologies

Core membership attendees:

• Tom Arthur MSP, Minister for Public Finance, Planning and Community Wealth (Chair)
• Patrick Harvie MSP, Minister for Zero Carbon Buildings, Active Travel and Tenants’ Rights 
• Joe FitzPatrick MSP, Minister for Local Government Empowerment and Planning 
• Cllr Katie Hagmann, COSLA Resources Spokesperson 
• Robert Emmott, Local Authority Director of Finance Group
• Les Robertson, IRRV Representative 

Also in attendance:

• Mirren Kelly – COSLA
• Jonathan Sharma – COSLA
• Ellen Leaver - Scottish Government    
• James Messis - Scottish Government

Apologies:

• Cllr Shona Morrison, COSLA President  
• Cllr Steven Heddle, COSLA Vice-President  
   

Items and actions

1.    The chair, Tom Arthur MSP, welcomed members to the Seventh Meeting of the Group. The Group agreed the minutes from the previous meeting on 14 November 2023 and discussed the actions from them.

2.    The group discussed updates on the list of actions:

•  Tom Arthur MSP discussed the recent engagement with the Poverty and Inequality Commission, who maintain an interest in the work of the group.
• Tom Arthur MSP updated the group on the announcement earlier in the month which confirmed £200,000 funding to Citizens Advice Scotland. The funding is intended to develop a better understanding of the reasons why some people end up in Council Tax arrears and to help reduce and prevent non-payment in future.
• Scottish Government officials updated the group on the new data sharing developments through the Digital Economy Act 2017.
• Tom Arthur MSP gave an update on the internal exploration to provide local authorities with the discretion to increase Council Tax on Second and Long-term Empty Homes by up to 300%/
• The chair introduced the third item on the agenda – ‘Engagement with the Public’ - and highlighted the importance of a stocktake ahead of setting direction.

4.    The chair referred to the Deputy First Minister’s Stage 3 Statement. He reflected on the statement’s reference to the necessity to move into the ‘Second Phase’ of work, including developing and implementing plans for public engagement to build consensus on the nature of reform.

5.    The group discussed public perception of reform considering the recent consultation on Council Tax Multipliers’. The group agreed the need to bring the public on the journey of engagement and acknowledged the importance of taking care in the drafting of any policy documents. The group agreed that the Joint Working Group should vet and evaluate the materials, including with trusted stakeholders; potentially seeking the views of the Tax Advisory Group.

6.    The group discussed certain aspects of reform which could be taken to public engagement. There was consensus that undertaking certain reforms ahead of broader engagement would be premature and risk the development of that consensus on reform. 

7.    The group agreed the need to build consensus both on the nature and basis of reform. The group also agreed that engagement questions with a broader scope might not be conducive to establishing that consensus. 

8.    The group discussed several types of engagement and agreed an action for the development of a paper on the forms of public engagement for the Group members to consider. The group acknowledged that the development of this work would aid in establishing a work plan, including in the future on other source of Local Government funding.