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Scotsman
6 days ago
- Business
- Scotsman
Scotland's political parties urged to commit to abolishing council tax
Tax Justice Scotland said politicians should 'grasp the jaggy thistle of real reform' Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Scotland's political parties have been urged to commit to abolishing and replacing the 'unfair and outdated' council tax in their Holyrood election manifestos. Tax Justice Scotland, a campaign group backed by more than 50 organisations and individuals, including charities, trade unions and the Kirk, called on politicians to 'grasp the jaggy thistle of real reform'. Advertisement Hide Ad Advertisement Hide Ad Council tax is based on property values from 1991, and experts estimate more than half of properties are in the 'wrong band'. The Institute for Fiscal Studies described it as 'ripe for reform' in a report published earlier this year. Money stacked on top of a council tax bill | PA However, this is seen as politically difficult, because any revaluation will likely lead to wealthier Scots paying more. In June, SNP public finance minister Ivan McKee said a revaluation was 'absolutely needed', adding: "The reality of that is that there will be winners and losers, and that's really important to recognise." However, the Scottish Government later poured cold water on this, and suggested substantial reform will not be possible this decade. Tax Justice Scotland said local authorities are now relying on a system that perpetuates 'deep and persistent unfairness', leaving local public services – such as schools, social care and libraries – under growing pressure. Advertisement Hide Ad Advertisement Hide Ad It called on parties to commit to abolishing the tax ahead of the Holyrood election next year, replacing it with a 'fair, modern property tax'. The campaign group said ministers should launch a national revaluation of property as a first step following the election, and ensure the new system is 'local, proportional, and protects those on low or fixed incomes'. The SNP has long promised to reform council tax. Its 2007 manifesto pledged to scrap it and replace it with a local income tax. Its 2021 manifesto said the party was still committed to reforming council tax to make it 'fairer', but would ask a citizens' assembly to consider the way forward. Ministers are now engaging with Cosla, the local authority body, to 'build consensus around reforms', before seeking the views of the public. Advertisement Hide Ad Advertisement Hide Ad Scottish Labour's 2021 manifesto pledged to abolish council tax and replace it with a fairer alternative, while the Tories said they would not support any overhaul in the absence of cross-party support for a reform proposal. The Liberal Democrats promised to 'restart the cross-party process to replace the council tax', and proposed switching to a land value system. The Greens pledged to replace it with a tax related to property value. Speaking on behalf of Tax Justice Scotland, Dave Watson, director of the Jimmy Reid Foundation, said: 'We've had consultations, commissions and countless commitments, but little has changed. 'Decades of delay on council tax reform have deepened the crisis facing local services and locked in inequality. The 2026 election is the moment for Scotland's leaders to move beyond words and commit to the fair, modern and proportionate tax system our communities deserve.' Advertisement Hide Ad Advertisement Hide Ad Sara Cowan, director of the Scottish Women's Budget Group, added: 'The broken system of council tax hits women hardest, especially those holding up households, holding down low-paid jobs, and holding communities together.
The National
6 days ago
- Business
- The National
Campaigners demand Council Tax reform in 2026 manifestos
Tax Justice Scotland – a movement supported by more than 50 organisations, economists, academics and trade unions – has published new analysis demanding action on the issue. The group says the current Council Tax system is outdated, financially unsustainable and unfair. READ MORE: Scottish council to pay nearly £50,000 to lease its own offices They argue that it puts pressure on vital local services such as schools, social care and libraries. Despite broad political agreement that the tax is not fit for purpose, campaigners say progress has stalled. In June, Public Finance Minister Ivan McKee said a revaluation of properties is 'absolutely needed'. However, the Scottish Government has confirmed that current discussions with local authorities are only meant to inform a longer-term public debate, with no substantial changes expected this decade. Tax Justice Scotland has warned that continued delays risk repeating a pattern of inaction that has gone on for more than 20 years. The campaign group also says rising bills are hitting low-income households – a large number of which are headed by women, including single parent households – the hardest, and that the time for consultations and vague promises is over. Dave Watson, director of the Jimmy Reid Foundation, said: 'We've had consultations, commissions and countless commitments, but little has changed. 'Decades of delay on Council Tax reform have deepened the crisis facing local services and locked in inequality. 'The 2026 election is the moment for Scotland's leaders to move beyond words and commit to the fair, modern and proportionate tax system our communities deserve.' Tax Justice Scotland are calling for clear manifesto commitments to abolishing Council Tax and replacing it with a fair, modern property tax and launching a national re-evaluation of property as "the first step in the next Parliament". The group are also demanding any new systems are local, proportional and protect those on low or fixed incomes whilst ensuring effective transition support is in place. Campaigners say that replacing Council Tax is vital for a fairer system which helps close the wealth gap. Property is a major source of wealth in Scotland – and one of the few the Scottish Parliament can currently tax. The group also point to findings from the Accounts Commission, which warns that councils are using reserves and one-off savings to stay afloat, while public demand continues to grow. They highlight that Council Tax is still based on 1991 property values and that many homes are in the wrong band. By 2014, the most expensive homes were paying only 3.5 times more than the cheapest, despite being worth 15 times as much on average. READ MORE: 'Made up': Scottish Labour disown fake Anas Sarwar quote on lawyer's website Tax Justice Scotland also said that "bold, detailed commitments from party leaders" are now needed to break the cycle of delay and deliver lasting reform. Sara Cowan, director of the Scottish Women's Budget Group, said: 'The broken system of Council Tax hits women hardest, especially those holding up households, holding down low-paid jobs, and holding communities together. 'The evidence has been sitting on a shelf for years, and the consensus for what comes next is clear. 'We're calling on every party leader to show courage and leadership by putting Council Tax replacement front and centre in their manifestos.'
