Alex Salmond's Alba move to block 'super council tax' bid after soaring bills concern

Cash strapped councils are calling for new powers to review discounts and exemptions and also to impose additional levies.

It comes after the Herald revealed that Scotland's council tax mountain has risen to record levels, increasing sharply by nearly 50% in a year as concerns grow of a credit crisis during the coronavirus pandemic.

In 2020/21 the amount of council tax that remained outstanding amounted to £139.552m on March 31, 2021.

Last year, before the pandemic hit, the council tax debt stood at £95.4m - a rise of nearly 25% on the previous year.

The amount currently owed in council tax which has led to tens of thousands of households being pursued is believed to have impacted by the economic effects of the Covid-19 pandemic as councils limited debt recovery processes to avoid contributing to financial pressure on council taxpayers.

The so-called ‘super council tax’ demands came from the local authorities' umbrella group Cosla in response to a Scottish Government inquiry on tax.

But it has come under fire as it raises fears of soaring council tax bills at a time when consumers are being hammered by soaring energy bills and fuel costs.

The Alba party has now called for a block to the plans as it called on Scottish ministers to fully fund a council tax freeze in upcoming local authority budgets.

The councl tax freeze policy has been approved at a national executive committee meeting of the party, which said household budgets across Scotland face the prospect of electricity and gas bills jumping in April, with energy experts believing such expenses could rise by half.

Alba general secretary Chris McEleny said: “Cosla are rightly campaigning for more powers to be devolved to local Councils. But whether extra tax is raised locally or nationally it will still come out of people’s pockets in the midst of a cost of living crisis."

The Inverclyde councillor added: "I represent the poorest part of Scotland. A council tax increase this year could be the difference between whether or not people are forced below the breadline.

“Across the world governments are stimulating economies by putting money into peoples pockets, they’re not implementing austerity by stealth by increasing taxes.

“The Scottish Government must review its draft budget and centrally fund a council tax freeze. Anything less in the midst of a pandemic will be be an assault on working people akin in to Thatcher’s hated poll tax."

Under the new plan, singletons, students and the disabled are among those who get discounted rates, while more control over levies would allow councils to force other groups to pay more.

Local authorities are also looking for more control over planning fees and business rates, as well as over more local taxes, like on tourists or workplace parking.

Since 2007, the SNP has frozen or controlled increases to council tax rates. Scottish local councils have complained loudly in recent years that they are struggling to fund vital services.

But independent experts say that councils are currently facing a £284 million cut in core revenue funding after inflation, according to an analysis lodged with the Scottish Parliament.

Cosla has previously warned that next year's funding settlement would be "disastrous" for communities and that essential services have been left in a "precarious position".

Councillor Gail Macgregor, its resources spokeswoman, said the funding outlined in the Ms Forbes' Scottish budget represented a £100 million cut.

But Ms Forbes insisted the spending plan deliver “real-terms growth" for councils.

Alba – launched in March last year – says most councils are budgeting for an rise in council tax of at least 3 per cent, with some considering hikes of more than 5 per cent.

The pro-independence party says it wants the Scottish Government to increase the Local Government settlement to secure a deal with local authorities to freeze council tax increases – a policy it claims would cost £135m and provide councils with the equivalent of a 4.5 per cent council tax increase.

The party has said this would provide “assurance and certainty to households as people face unprecedented challenges”.

A Scottish Government spokesman said: “Despite continued economic uncertainty due to the pandemic, we are providing a real terms increase of over 5 per cent to local authority budgets for the coming year.”