Fife Council refuses to rule out council tax rise despite Scottish Government pledge

Finance Secretary Kate Forbes today (Thursday) announced a £90 million pot for local authorities to dip into instead of raising council tax.

The extra money – delivering the equivalent of the gains from a 3% rise in council tax – will be made available to any council that does not impose a rates hike on residents who may be experiencing difficulties due to the coronavirus pandemic.

Ms Forbes told MSPs: “In recognition of the unique pressures created by the pandemic for household incomes, the settlement also includes an additional £90 million to compensate councils who choose to freeze their council tax at 2020-21 levels.”

Contacted for comment Fife Council would not state their intentions.

A spokeswoman for Fife Council said: “Our budget meeting is on Feb 25. No decisions will be taken until then.”

Councils in Scotland endured a nine-year freeze on council tax until 2017 under a flagship policy of the SNP-run Scottish Government. Authorities are now able to raise tax by a maximum of 3% each year, plus inflation.

Other key announcements affecting local authorities in today’s Budget include an additional £200 million to cover income lost due to Covid-19, an additional £59 million to support the roll-out of 1,140 hours of early learning and childcare and £72.6 million for local health and social care coffers.