7,000 Affected by Council Tax Change
An estimated 7,000 households in Inverclyde will be impacted by changes to the council tax system that will see their bills rise to fund increased funding for schools.
Councillors on Inverclyde Council’s Policy & Resources Committee heard today (15 November 2016) that the majority of households in Bands E to H – the highest council tax bands – will be affected.
Inverclyde Council Leader, Councillor Stephen McCabe, said: “There does not appear to be widespread knowledge that a decision on a significant increase in council tax has been made. Since the council is, in effect, collecting the increase on behalf of the Scottish Government, it is important that we make sure residents have as much advance notice of this to plan their household finances accordingly. It is also important residents are aware that councils cannot vary this increase, particularly at a time when the council is consulting on, among other things, the possible increase of council tax over and above this increase from the Scottish Government to fund increased spending on education in Scotland.”
The changes to council tax were introduced by the Scottish Government following the final report on the Commission for Local Tax Reform.
They include raising an additional £100m per year across Scotland to invest directly in schools. The Scottish Government changes aim to make the council tax fairer by changing how the rate for more expensive properties in bands E to H is calculated and asking people in these bands to pay more. Only those in low income households will be exempt from the increase.
The changes will also see an increase in the child premium in the council tax reduction scheme by 25%.
Finance bosses at Inverclyde Council have calculated that nearly 7,000 households in bands E to H will be affected.
The table below will shows how the changes outlined above could affect the bills for properties in bands E to H:
|
Band |
Current amount |
£increase |
% increase |
future amount |
Estimated households affected by increase |
|
A (disabled) |
£666 |
- |
- |
- |
- |
|
A |
£799 |
- |
- |
- |
- |
|
B |
£932 |
- |
- |
- |
- |
|
C |
£1,065 |
- |
- |
- |
- |
|
D |
£1,198 |
- |
- |
- |
- |
|
E |
£1,464 |
£110 |
7.5% |
£1,574 |
3,436 |
|
F |
£1,730 |
£217 |
12.5% |
£1,947 |
1,904 |
|
G |
£1,997 |
£349 |
17.5% |
£2,346 |
1,410 |
|
H |
£2,396 |
£539 |
22.5% |
£2,935 |
209 |
It is intended that letters will be sent in the next two months to all households affected by the change to give them advance notice of how the their council tax bills would be affected.
Inverclyde Council, as collection authority for council tax, non-domestic rates and water charge does not have any role in the setting or varying the increase.
The Scottish Government has, in addition to the above changes, also lifted the council tax freeze which will allow councils to increase council tax across all bands up to a maximum of three per cent. If the council were to increase the council tax by up to three per cent for the financial year 2017/18, this decision would be done at the Council meeting which takes place on 16 February 2017.
Link to Scottish Government information on Council Tax and Council Tax reform: http://www.gov.scot/Topics/Government/local-government/17999/counciltax
Link to Inverclyde Council website with information on council tax discounts, reductions and exemptions: https://www.inverclyde.gov.uk/council-and-government/council-tax/council-tax-discounts-and-exemptions