Why The Council Tax Freeze is cold comfort for struggling Scots.
The council tax freeze. I bet it sounded great on paper. When you are unpopular, announce a tax cut – what could go wrong? Position it as a soothing balm for the Westminster-blamed cost of living crisis and hope to repeat the 2007 electoral impact of Sturgeon and Salmond’s promise to abolish it.
But this isn’t 2007, and Humza Yousaf is no Nicola Sturgeon, never mind an Alex Salmond. The promised “relief” is nothing more than a mirage. A political sleight of hand that, while momentarily pleasing, has medium-term repercussions that will weaken local governments and the services they provide. If voters understand that this is further harming the already threadbare council services they rely on, it could it should backfire.
The Council’s Plight: When a Freeze Burns
Let’s start with the basics. Councils need money to function—no groundbreaking revelation there. This money comes from a mix of government grants and local taxation, primarily council tax. When the SNP Government, led by the hapless Humza Yousaf, announces a council tax freeze, it caps the local Government’s ability to generate revenue through this avenue.
Council costs for goods and services are on the rise. A freeze in council tax is not a freeze in costs. It’s a freeze in the council’s ability to meet those rising costs. So, In real terms, it’s a cut. South Lanarkshire Council warns of “drastic cuts” to services if the freeze continues, highlighting the dire straits councils find themselves in.
The Power Grab: An attack on devolution
The council tax freeze raises questions about power distribution between local and central governments. Why should the Scottish Government dictate the financial decisions of local councils? The Greens argue that “vital services must not pay the price for a council tax freeze” . By usurping the council’s authority to set tax rates, the Government is undermining local autonomy and the principle of subsidiarity, which posits that social and economic issues should be dealt with at the most immediate level compatible with their solution.
This is what works elsewhere – In countries like Germany and Switzerland, local governments have significant autonomy in setting tax rates. This decentralised approach not only fosters local innovation but also allows councils to tailor services to the unique needs of their communities. By contrast, Scotland’s council tax freeze stifles local ingenuity and responsiveness.
It’s not news that the SNP are hypocrites – and one of their key narratives has been about a power-grab, claiming that distant Westminster has grabbed power from Scotland and unfairly restricts spending. At the same time, they can’t name a single power that Holyrood has lost, and they seek to centralise power away from communities.
This is an attack on devolution—a power grab.
COSLA’s Stand: A Defiant Voice Against the Freeze
Councils have reacted angrily to the announced freeze.
The Convention of Scottish Local Authorities (COSLA) has been vocal in its opposition to Humza Yousaf’s council tax freeze. Council leaders across Scotland have even threatened to defy the Government’s decision, calling it a “U-turn” that undermines local governance.
COSLA has stated that there is “no agreement” on the council tax freeze, highlighting the discord between local and central governments on this issue They’ve labelled the policy as “deplorable,” emphasising the detrimental impact it will have on local services and communities.
This strong reaction from COSLA serves as a significant counterpoint to the Government’s narrative, reinforcing the arguments against the council tax freeze. It also underscores the tension between local and central authorities, further questioning the wisdom and feasibility of such a policy.
The council tax freeze may sound like a relief to some, but it’s worth examining its real-world impact on local services.
Falkirk Council
Take Falkirk Council, for instance. Before the freeze, the council was already grappling with a five-year £64.4 million budget gap. They had plans to increase council tax by over five per cent to prevent further cuts to vital public services. However, the freeze has thrown these plans into disarray, leaving the council scrambling to reassess its financial strategies. Council members were explicitly told that if the council tax rise is any less than five per cent, they would have to cut more services or increase fees and charges. Now, they are left with fewer options to survive financially. Union bosses have even described the freeze as “electioneering at its worst,” raising concerns about the long-term funding for local authorities Falkirk Herald.
Fife Council
Fife Council‘s leader, David Ross, has been vocal about his disdain for the council tax freeze, describing it as a “desperate attempt by a failing government to buy votes.” Ross argues that the decision to freeze council tax should be local, not dictated by Holyrood. He further criticises the Government’s claim that the freeze will be “fully funded,” calling it “laughable.” According to Ross, the freeze will cost at least £100 million, money that could have been spent on essential services like social care for the elderly, road repairs, and education. Ross believes that while Fife might be better positioned than other councils to weather this financial storm, the freeze will inevitably lead to less funding for services, thereby “storing up problems for future years” Dunfermline Press.
Argyll and Bute
Argyll and Bute Council have expressed concerns over the council tax freeze, emphasising its impact on local services. The council is already facing a £12+ million gap in its budget, and the freeze only exacerbates the situation. A council spokesperson stated, “When costs are rising and the council is facing a £12+ million gap in its budget, freezing council tax puts council services at greater risk. A five per cent increase, for example, would mean nearly £3m more for vital services.” The council is awaiting further details on funding from the Scottish Government but has pledged to continue fighting for fair funding through COSLA.
Glasgow
Glasgow, the feather in the cap of SNP gains in Local Government, is not immune to criticising the policy either. Glasgow councillors have not minced words in their criticism of Humza Yousaf’s council tax freeze, calling it “disrespectful” and a decision made without any prior consultation. Cllr Jon Molyneux, co-leader of the city’s Green group, pointed out the irony in the First Minister’s actions, stating, “The First Minister would be rightly livid if the UK Government announced plans for devolved Scottish taxes, so he should realise it is just as disrespectful for him to announce a council tax freeze, without any prior consultation.” Molyneux further emphasised that the freeze hampers local councils’ ability to respond to community pressures, essentially “starving local services of cash.”
Cllr Jill Brown, Glasgow Labour’s finance spokeswoman, was equally critical, describing the freeze as “another policy made up by the SNP as they go along.” She highlighted the inconsistency in the SNP’s stance, noting that they had recently proposed increasing taxes by nearly 20% and are now reverting to an “old recycled policy from 2007 without any consultation with COSLA.” Even a Glasgow SNP spokesman admitted that the group “will always look to protect and improve services,” subtly acknowledging the challenges posed by the freeze.
This strong reaction from Glasgow councillors adds another layer of complexity to the debate, questioning the financial implications and the manner in which the decision was made. It serves as a stark reminder that the freeze is not just a financial issue but also a matter of governance and respect for local autonomy.
It raises a legal question as well – councils have the democratic right to set council taxes – that power does not sit with Holyrood, but a previous freeze was enforced by the SNP threatening to clawback central government funding if councils raised taxes even to pay for critical services—austerity by coercion.
Who Pays the Price?
The answer, unfortunately, is the most vulnerable among us. The council tax freeze is not a benign act of financial relief; it’s austerity in weak disguise.
While the council tax freeze may seem like a boon for the middle class, it’s essential to ask who bears the brunt of this policy. Those who rely heavily on council services—from social care to education—are the ones who will feel the pinch.
By limiting what councils can spend, the Government is cutting back on services that are lifelines for many. Councils in Scotland receive their funding from a mix of government grants, non-domestic rates, and, of course, council tax https://www.gov.scot/publications/funding-local-government-scotland-2023-24/pages/2/ When one of these sources is frozen, the whole system feels the strain.
The SNP’s Squeeze: Bigger Grants but Smaller Shares
It’s worth noting that the SNP administration has been receiving ever-larger block grants from Westminster. However, these increases have not trickled down to local governments. A report by the Scottish Parliament Information Centre (SPICe) highlights that while the block grants have grown, the share allocated to local governments has not seen a corresponding increase [SPICe]
The Counterarguments: Is it all bad?
Now, let’s address some of the arguments that no doubt, the nationalists will spin. A key one is that the freeze will help alleviate households’ financial burden. While this is true to an extent, it’s a short-term gain for a long-term loss. As we’ve established, the freeze in tax is essentially a cut in services, and either people won’t be able to afford to replace those services individually, or they will end up paying more. Communities will lose out.
Another argument is that councils can still receive funding from other sources. However, as we’ve seen, the SNP administration has not been generous in passing down increases in block grants. Other sources like non-domestic rates are not sufficient to cover the shortfall, especially in times of economic uncertainty, and indeed Stephen Flynn when pressed would not guarantee that the shortfall would be made up.
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Humza Yousaf’s council tax freeze is not the panacea it’s made out to be. Far from being a simple act of financial relief, it’s a complex web of political manoeuvring, short-term gains, and long-term losses. It undermines local autonomy, perpetuates a form of disguised austerity, and is regressive – disproportionately affecting the most vulnerable in society.
It’s worth noting that the SNP’s 2007 promise to abolish council tax was a significant factor in propelling them into power. The current freeze is a pale imitation of that bold move, perhaps an attempt to recapture some of that past glory. However, even if we take Yousaf’s justification at face value, the policy is likely to fail in its objectives. By cutting off a vital source of revenue for councils, the freeze will lead to a decline in services, affecting the very households he hopes to bribe. If voters, better informed now than in 2007, are sensitive to already cut services and know where to lay the blame.
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