2 days Ago
The Welsh bid to carry out a property revaluation in 2028 was praised as academics and experts spoke to Holyrood’s Local Government committee. Critics of the council tax system point out it is still based on property values from 1991 and is becoming less and less of a genuine property tax as the years go by. Around half of properties in Scotland are thought to be in the wrong tax band.
But so far there has been no agreement from politicians on how to replace council tax, with the Scottish Government pledging to try and build a consensus this year. Professor David Heald, of the Adam Smith Business School at Glasgow University, told the committee the reforms in Wales could potentially become a model for Scotland. He said: “Scotland and England are serious outliers in this point about not getting revaluation.
“I find it extremely depressing that it almost seems as if Scotland cannot move if England will not move.” Prof Heald said that even if a consensus is reached for a revaluation it would likely take place around 40 years after the first council tax valuation in 1991, a timescale he said would bring the parliamentary process “into disrepute”. Joanne Walker, of the Chartered Institute of Taxation, said there is misunderstanding about the contribution the tax makes to local authorities, saying it only accounts for 19% of councils’ income.
David Phillips, associate director at the Institute for Fiscal Studies (IFS), said politicians’ failure to tackle the issue amounted to a “tyranny of the status quo”. He pointed out that revaluation does not always mean householders’ bills will go up, as it would depend on the average growth rate of property prices. Research from the IFS has found that if properties were revalued for council tax on a revenue-neutral basis, around 60% would see little change in their net bill.
Earlier this month, the Scottish Government and Cosla announced they would hold a joint consultation on council tax reform. A parliamentary debate will be held on the issue later this year. Finance Secretary Shona Robison said earlier: “Partnering with Cosla, we want to examine ways to make council tax fairer, which will help to continue to deliver better public services across Scotland.
“By working closely with local authorities and listening to the public, we will be seeking a consensus on a local taxation system that is fairer, financially sustainable, and fits a modern Scotland.”.
