William Eichler 19 February 2016

Council tax freeze costs Scotland £484m, says union

GMB Scotland has demanded an end to an eight year freeze on council tax which will cost Holyrood £484m in additional income for 2016-17.

The union, which will hold a protest outside the Scottish parliament next week, argues the council tax freeze erodes the tax base, leading to cuts to jobs and services in Scotland's least affluent areas.

The protests will coincide with the final reading of the Scottish Budget in Edinburgh next week, and takes place at a time when Scotland's local authorities face severe cuts and job losses.

GMB's action is a response to a new report showing that, had council tax kept pace with inflation of 25.61% since 2007, the 32 local authorities in Scotland would be raising £484m in additional income for 2016-17.

Edinburgh City Council would have raised the most with an additional £50m, and, not far below that, Glasgow City Council would have raised £45m.

Gary Smith, secretary of GMB Scotland, told ministers to 'take their heads out of the sand' when it comes to the impact of cuts.

He continued: 'This erosion of the tax base only applies in Scotland and can only be remedied in Scotland. Above all it ends the policy of paying for local government in Scotland by "robbing Peter to pay Paul ".

'It is not right that wealthy Scottish households pay less council tax in real terms than eight years ago leading to cuts to jobs and services in Scotland's least affluent areas.'

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