Leader offers Council Tax compromise
THE leader of Inverclyde Council has made an offer to Scotland's deputy first minister that would see a local Council Tax freeze next year.
Councillor Stephen McCabe has written to Shona Robison MSP, who is also the country's finance secretary, seeking the area's share of the government grant to freeze Council Tax for 2024/25.
At a special meeting yesterday, Thursday 29 February 2024, the council agreed to increase Council Tax by 8.2 per cent in 24/25 and six per cent in 25/26 to help deliver a balanced budget and minimise cuts to jobs and services.
In doing so, the council declined the Scottish Government’s funding offer to implement a Council Tax freeze in 24/25.
The council leader has now made an offer to implement a freeze if the deputy first minister provides the money that was earmarked for Inverclyde.
Councillor McCabe said: “I have reflected on the discussions at the full council yesterday and the desire expressed by many of my fellow councillors that Inverclyde residents should benefit from the funding on offer from the Scottish Government for a Council Tax freeze.
“I have therefore written today to the Deputy First Minister proposing a way in which this can be achieved.
“If the government is willing to make this funding available on a recurring basis, baselined into the local government settlement for 2024/25 and beyond, I would be prepared to recommend to the council that we use the funding for 2024/25 to provide Inverclyde households with a one-off rebate on their Council Tax charge for 2024/25, which would mean that Inverclyde residents would receive a freeze in their Council Tax for 2024/25 in line with the First Minister’s national policy priority.
“This, I believe, offers a win-win-win for all concerned.
“The Scottish Government gets its national Council Tax freeze, Inverclyde households benefit from a local Council Tax freeze, and the council receives the benefit of a stronger Council Tax base.
“The compromise I have suggested is eminently reasonable.”
The full text of the letter is as follows:
Dear Shona
Council Tax Freeze
As you will no doubt be aware, last night Inverclyde Councillors exercised our democratic right to increase Council Tax. I am sure you will fully respect that decision.
Recognising however the First Minister’s desire for a national council tax freeze, I am writing to offer you a compromise agreement.
In your letter of 27 February to Stuart McMillan MSP you stated that around £2.9m, subject of course to additional funding being received by the Scottish Government from the UK Government, was available to the Council to support a Council Tax freeze. This sum obviously remains unallocated.
If you were prepared to make this funding available on a recurring basis, baselined into the local government settlement for 2024/25 and beyond, I would be prepared to recommend to the Council that we use the funding for 2024/25 to provide Inverclyde households with a one-off rebate on their Council Tax charge for 2024/25, which would mean that Inverclyde residents would receive a freeze in their Council Tax for 2024/25 in line with the First Minister’s national policy priority.
This I believe offers a win-win-win for all concerned. The Scottish Government gets its national Council Tax freeze; Inverclyde households benefit from a local Council Tax freeze; and the Council receives the benefit of a stronger Council Tax base.
I hope you will be prepared to accept this compromise in the spirit it is offered.
I have taken the liberty of copying this letter to the President and Vice President of COSLA and the Resources Spokesperson, as well as to Councillor Elizabeth Robertson, Leader of the Council’s SNP Group.
I look forward to hearing from you. A prompt response would be greatly appreciated so that we can make the necessary arrangements for the rebate to be made.
Kind regards
Stephen
The budget papers from Thursday’s special council meeting are available in the ‘Committees & Meetings’ section of the Inverclyde Council website or via the link in the Related Links section of this page and a recording of the meeting is available to watch on the council’s YouTube channel or via the link in the Other Websites section of this page.