THE Scottish Government will refuse to hand over Westminster funding to local authorities if they do not agree to freeze council tax.
The Daily Record reports that Deputy First Minister Shona Robison has said that councils who want a slice of a £62.7 million increase in grant funding will have to freeze the levy.
First Minister Humza Yousaf announced the freeze at the SNP conference in October last year, to opposition from council umbrella body Cosla and the Scottish Greens.
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It comes after Argyll and Bute Council, run by a coalition of LibDem, Tory, and Independent Councillors, have defied the freeze to put the levy up by 10%.
Robison initially offered £147m to councils to pay for the freeze, but authorities said this was not enough. The Finance Secretary then committed another £45m, set to come through Barnett consequentials after the UK Government’s Budget, and a further £17.7m.
The Record reports that Cosla figures wrote to the Deputy First Minister to complain that the extra funding is tied to the freeze.
They said: “It has now been confirmed by civil servants that any council which does not implement a freeze will not receive any of the funding, which will in fact mean a financial sanction (counter to Scottish Government’s previous public position).
“We would ask that this additional funding of £62.7m is allocated to all councils flexibly, no matter what their decision in relation to the council tax freeze.”
In her response, Robison confirmed the extra funding was on condition of the levy being paused.
She said: "I confirm that as set out in my letter of 21 February the offer of a £62.7 million increase in the General Revenue Grant is contingent on agreement to freeze the Council Tax.
“I am pleased that the majority of councils which have set their budgets to date have chosen to accept the additional funding and freeze council tax in 2024-25.
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“I hope that all other councils yet to make their decision also freeze their council tax now that we have offered this compromise.”
We told how Argyll and Bute Council defied the Holyrood freeze to increase bills by 10%.
Council leaders said the hike – which will see charges for an average Band D property rise to £1627.12 – is necessary to help save local services.
Speaking in Holyrood on Thursday, Robison said she hopes the council will “reconsider” the move, claiming it will leave the authority £400,000 worse off than if it had taken the funding offered by the Government.
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