Council tax freeze has benefited those in the higher council tax bands the most

21 August 2010

Marlyn Glen said today that the Scottish Governmentís council tax freeze has "benefited those in the higher council tax bands the most"

Ms. Glen was commenting on figures showing what would have happened to council tax payments in the bands A-H if council tax had risen in line with inflation ( consumer price index) over the past three years rather than having been frozen.

Those in the highest band, H, benefited three times as much as those in band A, the lowest band.

She said that the figures "confirm the overall Scottish trend that the council tax freeze has benefited those in the upper council tax bands the most."

She continued,

"Dundee City Council, like all other Scottish councils, has been treated very badly by the Scottish Government over the council tax freeze.

They promised Dundee City Council £1.762 million this year to freeze its council tax but only if the council slashed its spending by over 4 times that amount - £7.65 million.

"The more that the Scottish Government limits the councilís means of funding, the deeper the spending cuts the council must make.

"So the council struggles to provide services at the same time as carrying out the orders of the Scottish Government to cut back severely on spending.

"However, the council is still expected to implement costly Scottish Governmentís promises such as reducing class sizes in P1-P3 classes for which it has received no extra money.

"This is why this Scottish Government policy for funding local government is unsustainable and unworkable."

 

 

Dundee City Council council tax charge by valuation band

The figures for council tax in each successive financial year after 2007-08 show the value of the charge if the council tax had been increased with the rate of inflation for that year, rather than as frozen by the SNP.

(The rate of inflation is based on the Consumer Price Index figure for the December of the previous year. This would be the the latest available rate at the time when the council tax was set the following February.)

 

Valuation band

 

Council tax charge

 

Council tax charge increase in line with inflation Council tax charge increase in line with inflation Council tax charge increase in line with inflation Council tax charge

 

   
  2007-08 2008-09 2009-10 2010-11 2010-11    
    2.1 per cent increase 3.1 per cent increase 2.9 per cent increase actual    
A £807.33 £824.28 £849.83 £874.47 £807.33    
B £941.89 £961.66 £991.47 £1020.22 £941.89    
C £1076.44 £1099.04 £1133.11 £1165.97 £1076.44    
D £1211.00 £1236.43 £1274.75 £1311.71 £1211.00    
E £1480.11 £1511.19 £1558.03 £1603.21 £1480.11    
F £1749.22 £1785.95 £1841.31 £1894.70 £1749.22    
G £2018.33 £2060.71 £2124.59 £2186.20 £2018.33    
H £2422.00 £2472.86 £2549.51 £2623.44 £2422.00    

Over the three-year period , and because council tax did not keep pace with inflation :

those in Band H have seen their council tax payments reduced by almost £380

those in Band G have seen their council tax payments reduced by over £310

those in Band D have seen their council tax payments reduced by over £180

those in Band A have seen their council tax payments reduced by around £125

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