Council tax is set to increase in West Dunbartonshire and Argyll, which includes Helensburgh and all points north to Oban, after the Scottish Government chose not to extend its cap on the hated on householders.
But First Minister John Swinney says local authorities should not increase rates by “substantial amounts”, although he must be aware that it will increase the Cost of Living burden on low income families.
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, which turned out to be right following a meeting between First Minister John Swinney and Prime Minister Keir Starmer.
She announced a more than £1bn uplift for local authorities, but warned that the increases in council tax should be kept low. I has been 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, but the Labour Gropup on West Dunbartonshire Council are likely to pay little heed to him.
“This is all part of what I’m trying to do to strengthen our public services in our communities and to make sure that public authorities, whether in the health boards or our councils, 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.”
The truth is that in West Dunbartonshire the council is on the wrong side of broke and cutting everything in sight and the Health Board’s money situation was dire and got badly worse during the covid pandemic.
Scottish council leaders considered the Budget when they met today. An analysis document published by local government body COSLA found there had been a £337m increase in funding that wasn’t ringfenced, which means that it was not allocated to a specific service.
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.
Free school meals for all pupils are unlikely to be introduced until after 2026.
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.