In December, MPs voted for legislation that gave local authorities the green light to increase council tax on second homes. Photo: Liz Leyden/iStock Unreleased
The Scottish Parliament has increased MPs' spending to allow them to use the government budget to cover the cost of doubling council tax on their second homes in Edinburgh.
MPs voted in favor in December legislation that gave local authorities the green light to increase council tax on second homes came into force this month.
But the move would hit those renting or owning second properties in Edinburgh to they could visit the Scottish Parliament for a week.
Holyrood's Scottish Parliamentary Body Body (SPCB) has decided to increase spending limits to cover increased council tax bills through the public treasury.
The SPCB has decided to remove the £20,700 cap on the 'Edinburgh Living Allowance' which The MSP could be used to cover the cost of staying in the Scottish capital away from their constituency homes.
This is expected to cost taxpayers an extra £70,000 to cover the additional council tax for the 38 MSPs who are either withdrawing apartment, or own a second home in Edinburgh.
'Special treatment'
But the move has sparked fury because there is no similar workaround for any other second home owners in Scotland.
It also comes after MSPs received a pay rise earlier this month fees by 6.7%, bringing their annual salary to £72,195.
David Alexander, chief executive of estate agency DJ Alexander, criticized the proposal to give MSPs «special treatment» and said they should pay the extra costs.
He told The Scottish Sun: «There seems to be one rule for the public and another for members of parliament. There would seem to be no limit to how much taxpayers can be charged, but there certainly is a limit to how much MSPs are willing to pay for their own policies.»
Fiona Campbell, chief executive of the Scottish Self Catering Association, said the move created a feeling that «politicians will manipulate the system for personal gain.»
She added: «There can't be one rule for the general public and another one for MSP. There must be consistency and fairness across the board.”
The SPCB is made up of MPs from each of the four major parties and chair Alison Johnston.
“Significant increase in rent levels”
New documents show that at its meeting last month it considered the question of what to do about doubling council tax.
The document notes Edinburgh City Council's decision to «apply all 100 taxes». percentage allowance for properties deemed to be a second home» and that none of the exemptions would apply to MSPs.
It said 35 MSPs rented a flat in Edinburgh for work and three owned the property, but were seeking a refund expenses related to municipal tax.
The SPCB minutes say it has decided to pay «all 38 members who currently own a flat with an extension» their allowance «which is equivalent to the actual value of their individual additional council tax contribution.»
A In the document , setting out the options, said: «For example, if Member A's council tax was £2,200, this would be an increase, and if Member B's council tax were £1,500, this would be an increase.»
< The document also warned that "we are seeing a significant increase in rent levels in Edinburgh, with some members who are forced to move reporting that they are finding it difficult to find space." The SPCB is looking into the impact of restrictions on spending.
A Scottish Parliament spokesman said: “The nature of the work means that around a third of MSPs stay overnight in Edinburgh, and those eligible to rent a flat are usually based there. three evenings a week while Parliament is in session.
“It therefore makes sense in this context that the increased costs of council tax are met by Parliament.”
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