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| Highest council tax bands 'to pay more' says Nicola Sturgeon | Highest council tax bands 'to pay more' says Nicola Sturgeon |
| (35 minutes later) | |
| People in Scotland's four highest council tax bands are to pay more under new Scottish government proposals. | People in Scotland's four highest council tax bands are to pay more under new Scottish government proposals. |
| Under the proposals the average band E household would pay about £2 per week more, and the average household in the highest band about £10 a week more. | Under the proposals the average band E household would pay about £2 per week more, and the average household in the highest band about £10 a week more. |
| First Minister Nicola Sturgeon said the move would raise £100m a year for education. | First Minister Nicola Sturgeon said the move would raise £100m a year for education. |
| The council tax freeze will also end in 2017, with councils then able to increase the tax by up to 3% a year. | |
| Local services | Local services |
| Ms Sturgeon said this would potentially allow local authorities to raise up to £70m to help fund local services across Scotland. | Ms Sturgeon said this would potentially allow local authorities to raise up to £70m to help fund local services across Scotland. |
| The 75% of Scottish households that live in bands A to D would be unaffected by the changes, which will be introduced if the SNP is re-elected in the Holyrood election on 5 May. | The 75% of Scottish households that live in bands A to D would be unaffected by the changes, which will be introduced if the SNP is re-elected in the Holyrood election on 5 May. |
| The average annual increase in council tax as a result of the band adjustments announced by Ms Sturgeon will be: | |
| A further 54,000 households living in bands E to H on low incomes - more than one third of which are pensioner households - would be entitled to an exemption from the changes through the council tax reduction scheme. | A further 54,000 households living in bands E to H on low incomes - more than one third of which are pensioner households - would be entitled to an exemption from the changes through the council tax reduction scheme. |
| The reforms would also provide additional support to families on low incomes across all council tax bands. | The reforms would also provide additional support to families on low incomes across all council tax bands. |
| This would be by extending the relief available to households with children, which the Scottish government said would benefit 77,000 low income families by an average of £173 per year and support an estimated 140,000 children. | This would be by extending the relief available to households with children, which the Scottish government said would benefit 77,000 low income families by an average of £173 per year and support an estimated 140,000 children. |
| Ms Sturgeon said the changes would ensure bills in every band were lower than they would have been had the freeze not been in place. | Ms Sturgeon said the changes would ensure bills in every band were lower than they would have been had the freeze not been in place. |
| Across Scotland, average rates in all bands will remain lower than the average in England, she added. | Across Scotland, average rates in all bands will remain lower than the average in England, she added. |
| Ms Sturgeon also said there were no plans for a revaluation of properties. | Ms Sturgeon also said there were no plans for a revaluation of properties. |
| Scotland's 32 councils currently raise about 15p of every pound they spend from council tax, with many local authorities arguing the freeze that has been in place since 2007 was threatening jobs and local services. | |
| 'Balanced way' | |
| Speaking at an event at Lasswade High School in Midlothian, Ms Sturgeon said the council tax reforms would "protect household incomes, support investment in our schools, make local taxation fairer and ensure local authorities continue to be properly funded while becoming more accountable". | |
| She added: "The Commission on Local Tax Reform made clear that the present system could be made fairer. We are choosing to do this in a reasonable and balanced way that will also generate £100m of additional revenue to invest in schools. | |
| "These reforms to council tax bands will mean no change for three out of every four Scottish households, with those in lower banded properties paying no more than they do now." | |
| Analysis by Glenn Campbell, BBC Scotland political correspondent | Analysis by Glenn Campbell, BBC Scotland political correspondent |
| There was a time when the SNP argued that council tax was not reformable. In 2007, they were elected to government promising to abolish it and replace it with a local income tax. | There was a time when the SNP argued that council tax was not reformable. In 2007, they were elected to government promising to abolish it and replace it with a local income tax. |
| They went off that idea and opted instead for a nine year council tax freeze. If they win this year's Holyrood election, that freeze will end in 2017, but council tax rises will be capped at 3%. | They went off that idea and opted instead for a nine year council tax freeze. If they win this year's Holyrood election, that freeze will end in 2017, but council tax rises will be capped at 3%. |
| The existing eight bands will be revised to make those in bands E-H pay a bit more. There'll also be extra help for those on low incomes. | The existing eight bands will be revised to make those in bands E-H pay a bit more. There'll also be extra help for those on low incomes. |
| Nicola Sturgeon says her proposals will make the council tax fairer. At the moment, those in the top band pay three times more than those in the bottom. | Nicola Sturgeon says her proposals will make the council tax fairer. At the moment, those in the top band pay three times more than those in the bottom. |
| In future, those in the top band will pay nearer four times as much. It is a relatively modest proposal from a party that was once radical on local taxation. | In future, those in the top band will pay nearer four times as much. It is a relatively modest proposal from a party that was once radical on local taxation. |
| There will also be a consultation on whether a fixed proportion of income tax receipts should be distributed to councils, and on whether councils should be able to levy a tax on vacant and derelict land. | |
| The cross-party Commission on Local Tax Reform concluded in December that the current system was in need of change. | |
| Ms Sturgeon had said that her plans would "build on the findings" of the commission's report. | Ms Sturgeon had said that her plans would "build on the findings" of the commission's report. |
| Scotland's other political parties are expected to set out their proposals for local taxation soon. | Scotland's other political parties are expected to set out their proposals for local taxation soon. |
| But the Scottish Greens said the proposals outlined by the first minister did not go far enough, with the party's local government spokesman, Andy Wightman, saying council tax was "discredited and must be scrapped". | |
| 'Clear contradiction' | |
| He added: "The council tax freeze has damaged local services, cost jobs and affected important community facilities. It's hard to see how today's proposals from the first minister will arrest that decline. | |
| "The Scottish government has endorsed a regressive tax structure in clear contradiction to their claims to want to be progressive with tax powers." | |
| Bob Fraser, senior property partner at Aberdein Considine, said the proposals would make it harder to sell homes at the top end of the property market, particularly in areas such as Aberdeen, Aberdeenshire and Edinburgh. | |
| But he said there appeared to be "positive elements" to the proposals, such as the exemptions for some pensioners. |