Humza Yousaf’s pledge to freeze council tax in tatters after authority raises bills

Humza Yousaf’s pledge to freeze council tax for all Scots has been broken after a town hall confirmed it would raise bills by 10 per cent.

Argyll and Bute council voted on Thursday to defy the Scottish Government and reject the freeze, claiming it was the only way to avoid deep cuts to services and jobs.

Councillors decided to impose the double-digit increase in bills from April hours after last-minute concessions from Shona Robison, the deputy First Minister.

Ms Robison had promised a further £62 million for Scottish councils if they agreed to implement the SNP’s flagship policy designed to help with cost of living pressures.

However, Robin Currie, the council leader, said the “eleventh-hour” compromise had come too late and that increasing bills was the only way to save services.

“This rise is a blow for those in Argyll and Bute, but it illustrates the impossible position councils have found themselves in after years of SNP underfunding and mismanagement,” Liz Smith, finance spokeswoman for the Scottish Tories, said.

“It also shows that Humza Yousaf’s unilateral decision on a council tax freeze was no more than a hollow boast and gimmick to please his own party members at their conference.”

She added: “The SNP’s years of incompetence and neglect have led to savage cuts and crumbling public services, and left councils with no option but this rise – which thoroughly exposes the appalling failure to provide for essential services.”

SNP ministers had insisted that councils would be handed extra cash, equivalent to a five per cent rise in bills, in exchange for freezing council tax.

But local authorities have rejected claims that the policy would be “fully funded” and suspect promises that the one-off payment would be reflected in future funding settlements will be broken.

While several Scottish councils have agreed to the freeze, others are yet to set their budgets and a handful are considering following Argyll and Bute by increasing rates.

At the SNP conference in October, Mr Yousaf promised to “the people of Scotland that, next year, your council tax will be frozen.”

However, he had failed to consult with local authorities, which have the legal power to set bills.

‘Not fully funded’

Ms Robison previously said Scotland’s 32 councils would share £147 million if they agreed to freeze council tax rates.

On Thursday, the deputy First Minister revealed she had found another £62.7 million, as the nationwide freeze appeared on the brink of collapsing.

She put in writing that the funding for the freeze would be “baselined in future years into the General Revenue Grant for all councils which agree to freeze their council tax in 2024-25.”

However, Argyll and Bute maintains that the freeze was not fully funded and said a 10 per cent rise was needed if it was to plug a £40 million funding gap.

It means band D properties in the region will pay £1,627.12 per year from April, up from £1,479.20. Argyll and Bute council is run by a coalition of Liberal Democrat, Tory and independent councillors.

Local authorities had been shocked by Mr Yousaf’s announcement of the freeze last year, especially as the Scottish Government had previously planned to hike rates disproportionately for more expensive properties.

The policy was seen as a reaction to the SNP’s devastating loss in the Rutherglen and Hamilton West by-election, when the party was trounced by Labour.

Cllr Currie, a Liberal Democrat, said this year’s budget had been “the most difficult” his council had ever faced.

He said that despite making savings the council had faced “a multi-million-pound budget gap that threatened the council services people use every day.”

Cllr Currie added: “This service-saving budget is only possible with an increase in council tax. Council tax funds council services. Increasing council tax saves services.

“It was a difficult decision to take but it is the responsible one. Council tax reduction benefits are there to help those in greatest need.

“And communities across the area can continue to rely on the council services and support they need.”

The Scottish Government was approached for comment.