Magazine article Public Finance

Average Scottish Council Tax Increases to Be Set below Inflation

Magazine article Public Finance

Average Scottish Council Tax Increases to Be Set below Inflation

Article excerpt

Scottish councils are to receive funding increases of up to 5.5% as part of a record settlement totalling £8.7bn for 2007/08.

Giving more details of the deal he published in December, Finance Minister Tom McCabe said on February 7 that the total increase of £396m would enable local authorities to improve services while keeping council tax increases down.

The minister's declaration came as town halls prepared to set their council tax levels for 2007/08 on February 8. They were expected to agree an average below-inflation rise the lowest since the creation of the Scottish Parliament in 1999. The Scottish elections take place on May 3.

Scotland's biggest council, Labour-run Glasgow City, has already said it will freeze its council tax for the second year running.

McCabe gave detailed aggregate external finance figures, consisting of revenue support grant, specific grants and income from business rates, for all 32 Scottish councils.

The increases range from 3. …

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