The SNP said the changes are needed to ensure that Scots pay their «fair share» of public service funding. Credit: Westend61
Middle-class Scots have been told they are not paying enough council taxes as the SNP launches a 'smashing' raid on the finances of the wealthier.
On Wednesday, the Scottish government released a consultation on plans to dramatically increase municipal tax bills for around 750,000 households, affecting those living in more expensive homes.
The SNP said changes are needed to ensure Scots pay their «fair share» of public funding services.
Those in the top four of eight groups would pay more council tax, with bills going up by 7.5, 12.5, 17.5, and 22.5 percent for groups E, F, G, and H, according to the proposals. .
This would mean an average annual increase of between £139 and £781, not taking into account the uniform annual increase usually given by City Halls.
The Scottish Tories have criticized the move, which comes amid soaring inflation and mortgage lending. spending by homeowners, claiming they were used to offset council cuts imposed by Holyrood.
“These eye-popping SNP-Green government proposals will frighten people trying to deal with the global cost of living crisis,” said Liz Smith, financial spokesman Scottish Tories.
“People around the world Scotland should not bear the brunt of filling the black hole in council finances. Instead of even considering these impressive hikes, SNP-Green ministers should finally give our councils the fair funding deal they deserve.”
Scottish Council's top tax band hike will add £1,023 to household bills < p>The figures show that although the SNP's public revenue budget has grown by 8.3% over the past decade, it has not passed on that increase to the councils, whose funding increased by only 4.3%.
After seizing power in 2007, the SNP froze municipal tax bills. Ten years later, however, the policy was abandoned and bills have since risen sharply as ministers find it increasingly difficult to raise money for costly promises such as new social transfers.
Ministers said that after the change, the average municipal the tax for all but the most expensive houses north of the border will remain lower than in England.
However, they did not mention the higher income tax bills already in place in Scotland. Under Scottish tax policy, a person earning £50,000 pays £1,552 more per annum than if they lived elsewhere in the UK, and up to £2,606 for those earning £100,000.
The policy of increasing the «multiplier» for more expensive homes follows a similar move taken by Nicola Sturgeon in 2017, when she abandoned plans to eliminate council tax and replace it with an alternative system.
This is planned . that the municipal tax increase will take effect in April.
Tom Arthur, SNP public finance minister, said «most of the burden» now falls on those who live in less expensive homes, as while bills are lower, a higher proportion of their property's value is spent on council tax.< /p>
“The changes will only affect about a quarter of the property, and even after they are taken into account, the average council tax in Scotland will still be less than anywhere else in the UK,” he said .
The consultation seeks views on whether, if changes are made, they should be immediate or phased over two or three fiscal years.
Katie Hagmann, SNP board member and A spokeswoman for resources for Cosla, a body of the council, said: «This is a consultation on how to make council tax more proportionate for everyone so that homeowners pay their fair share for providing essential local services, including viewing these properties at a higher cost.
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