Council Tax Set to Rise Across Scotland Following Budget Announcement – Scottish Business News

Council tax rates across Scotland are expected to increase in 2025 after the Scottish Government chose not to extend the current cap. The announcement was made as part of Finance Secretary Shona Robison’s Budget, which outlined key measures aimed at addressing economic challenges while investing in public services.

Robison revealed a £1 billion uplift for local authorities, urging councils to keep any tax increases modest. She stated that the Budget was “filled with hope for Scotland’s future,” highlighting significant investments such as the removal of the two-child benefit cap and record NHS funding.

First Minister John Swinney, speaking to STV News, emphasized that councils have “no need to increase” taxes significantly due to the additional funding provided. He added: “This is all part of what I’m trying to do to strengthen our public services in our communities and ensure public authorities are well supported by government finance.”

The decision comes after a year of frozen council tax rates, with local authorities now tasked with determining their budgets for the coming financial year. Scottish council leaders are set to meet on Friday to discuss the Budget and its implications. An analysis by COSLA, the local government body, found that £337 million of the funding increase is not ringfenced, allowing councils greater flexibility in its use.

Other Key Measures in the Budget

• Income Tax Rates: Income tax rates in Scotland will remain frozen until 2026.
• Free School Meals: The scheme will be extended to include Primary 6 and 7 pupils from low-income families.
• Public Sector Support: The Scottish Government will receive £3.4 billion in additional funding from UK Government spending decisions, helping alleviate some pressures on public finances.

Despite these measures, the minority Scottish Government requires backing from at least one other party for the Budget to pass. No commitments have been made yet, leaving discussions ongoing as Scotland prepares for potential changes in local taxation.