Scottish Budget: Council tax reforms considered by ministers Nicola Sturgeon said there was a ‘willingness’ to do a deal with the Greens on the issue

Reforms to Scotland‘s council tax will be considered by ministers in return for political support for the Budget announced earlier this week, Nicola Sturgeon has said.

The First Minister said there was a “willingness” within the Scottish Government to bring forward changes to local taxation as the price for getting its spending plans through.

“I very much hope that we can come to an agreement that does see a commitment to local tax reform” The i politics newsletter cut through the noise Email address is invalid Email address is invalid Thank you for subscribing! Sorry, there was a problem with your subscription. Nicola Sturgeon

As the SNP is a minority administration, it needs the support of at least one other party to pass its Budget Bill, with the most likely scenario a deal with the Greens.

The smaller party is seeking a commitment to significant reforms to the council tax, which it says is outdated and results in the owners of highly valuable homes paying less than they should be.

Reforms were introduced in April last year, resulting in a hike in the rates paid by home owners of the four highest council tax bands, but the Greens are now lobbying for more far reaching change.

During First Minister’s Questions at Holyrood, Green co-convener Patrick Harvie pressed Ms Sturgeon to show “urgency and leadership” on the issue if she wanted the Budget to pass.

In her response, Ms Sturgeon indicated that ministers could well make such a commitment to persuade the six Green MSPs to help get the spending plans through early next year.

‘Hidden’ cuts

“There have already been discussions, I know, between Patrick Harvie and his colleagues and the Finance Secretary about tax reform. Derek Mackay is keeping me updated on those,” she said.

“We would expect those discussions to continue.

“I very much hope that we can come to an agreement around that, that does see a commitment to local tax reform, and a greater commitment to devolution of tax power to local authorities.”

Mr Harvie also accused Mr Mackay of trying to conceal the extent of cuts to councils’ core budgets through a “sleight of hand” in his Budget statement to MSPs earlier this week.

The Finance Secretary said the document provided a “real terms increase in both revenue and capital funding” for councils, as well as a real terms increase in the overall settlement of £210m.

But local government umbrella group Cosla said the Budget actually left councils facing cuts of £192m to their core budgets.

The Scottish Parliament‘s independent research unit later said the cuts were even deeper, amounting to more than £300m.

Mr Harvie said this was because the councils’ overall settlement included ring-fenced Scottish Government commitments on issues such as nursery places.

“Councils around the country are now being forced to look at cuts to schools, social care, parks, libraries,” he said. “Where does the First Minister think those cuts should fall?”

Responding, Ms Sturgeon said she would “like to do more for local government, for health, in a whole range of different areas”.

But she added: “If opposition parties want extra spending in some areas of the Budget, there is a duty to say what areas of the Budget they think that money should come from…we can’t create money out of nowhere.”