Shona Robison has been accused of unprecedented interference in local government by the Labour leader who defied her demands for a council tax freeze.
Inverclyde boss Stephen McCabe predicted Scottish councils were “heading for bankruptcy” because of the decisions made by the SNP finance secretary.
“History will not judge your stewardship of the nation’s finances kindly,” he told Ms Robison in a stinging letter today.
Mr McCabe’s Labour group, with backing from two Independent councillors, last week voted to raise council tax in Inverclyde by 8.2% from April and provisionally by 6% in 2025/26.
It means the bill for a Band D home will rise £127 a year from £1,429 to £1,547.
The move was in spite of Humza Yousaf’s vow to freeze the tax Scotland-wide, and Ms Robison offering councils £210m, the equivalent of more than a 5% rise, to avoid rises.
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Mr McCabe said the money was inadequate given the pressures on local services.
However the next day, March 1, he suggested a “compromise” to Ms Robison, saying that if she gave Inverclyde more money he could give taxpayers a rebate, wiping out the rise.
Ms Robison refused, and urged Mr McCabe to “formally revisit” the council’s decision.
She told him: “The advantage of implementing a freeze, rather than applying ‘a one-off rebate on their Council Tax charge for 2024/25’, would be that residents in Inverclyde would not then be faced with an effective 14.2% increase in their council tax in 2025/26.”
She also said it would be unfair to the councils who agreed a freeze if Inverclyde’s budget was topped up “on a recurring basis” in exchange for a one-year rebate.
Mr McCabe today replied and forcefully rejected Ms Robison’s request, and insisted his rebate plan was a “win-win” for the Government, Inverclyde residents and the council.
He said: “In my 17 years as a council leader, I have worked with three previous Cabinet Secretaries for Finance: John Swinney, Derek Mackay and Kate Forbes.
“None of them sought to interfere in the democratic decision-making process in Councils in the way you are.
“Is the next step if we don’t comply with your instructions to send in Commissioners to take over the running of the Council?
“For the avoidance of doubt, I will not be asking the Council to revisit the decisions we made on 29 February.”
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He added: “Without Council Tax rises significantly above inflation in the years ahead, Scotland’s councils are heading for bankruptcy.
"This is likely to happen on your watch. History will not judge your stewardship of the nation’s finances kindly."
He said he knew of some councils planning 10% tax rises in 2025/26 because of current cuts, followed by 5% rises each year after that.
He concluded: “If you were to refuse my offer again the only reasonable conclusion that could be drawn is that a nationwide freeze in Council Tax is not the national priority the First Minister said it was and that punishing Councils that dared to exercise their democratic rights is more important.”
In response, Ms Robison said: “I can see no rational financial or economic reason for the administration to increase the council tax by 8.2% in the middle of a cost of living crisis.
“I would welcome the opportunity to talk further with Inverclyde Council, which is aware that if it freezes council tax, it would be provided with the same amount of money it hopes to raise from its 8.2% hike. Instead, it will sadly be the people of Inverclyde who will have to literally pay the price of the council administration’s imprudent decision.
“For the sake of Inverclyde’s residents I hope the administration will think again as they have time to revisit their decision this week.
"And as I have confirmed to them in writing, I am happy to have further discussions with them, including on methods to deliver the Council Tax Freeze by recrediting households for next year and resetting their Council Tax Bands accordingly in future years to reverse the 8.2% increase.
“To date 28 councils have confirmed that they will take forward the fully funded council tax freeze, benefitting their residents at a time when the cost of living crisis is putting significant strain on household finances.”
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