Council tax rises below inflation

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Scotland's council tax bills will go up by an average of 1.9% this year.

The rise is below inflation and the lowest since the tax was introduced in 1993, the Convention of Scottish Local Authorities (Cosla) said.

The figure was announced after most of Scotland's councils met, less than three months before the local election, to set tax levels for the coming year.

The increases range from zero in Angus, Glasgow and Midlothian to 3.9% in South Ayrshire.

Cosla said the average Scottish Band D bill would go up from £1,129 to £1,151.

However, water and sewerage charges still have to be added.

Scottish Water said household bills would increase by 3.17%, making the average household bill £296.

I am delighted councils have risen to the challenge and responded Tom McCabeLocal Government Minister <a class="" href="/1/hi/scotland/6342007.stm">Band D levels for 2007/2008</a>

Three councils - Dundee, Inverclyde and Argyll and Bute - will set their tax levels at later dates.

Local Government Minister Tom McCabe said: "Local authorities in Scotland will have well over £17bn to spend on services this year.

"I have repeatedly urged Scottish local authorities to use these resources to exercise downward pressure on their council tax levels.

"I am delighted councils have risen to the challenge and responded."

Cosla finance spokesman John Pentland said: "Make no mistake this is a major win for Cosla - we have delivered a real and meaningful result for Scotland's council tax payers that they will feel in terms of the pound in their pocket.

"The fact that councils have managed to come in with the lowest ever council tax rise comes about as a direct result of the lobbying campaign undertaken by Cosla to convince the finance minister that the finance settlement for local government was not good enough."

Ms Sturgeon said the council tax system is "inherently unfair"

First Minister Jack McConnell and the SNP's deputy leader Nicola Sturgeon clashed over council tax in Holyrood on Thursday.

Ms Sturgeon accused him of failing to deliver on a pledge to make the council tax fairer.

"It's gone up by 60%, it's inherently unfair, and it's not based on the ability to pay," she said.

Ms Sturgeon told MSPs that Help the Aged estimated that council tax accounted for 13% of the average pensioner income.

However, Mr McConnell accused the SNP of having "a £1bn black hole" in its local government finance policy.

"They make promises they can't possibly keep, they will say anything to try and win votes, but increasingly they are being exposed for that," he said.