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Home » News » Tackling inequalities » Council tax reform

Council tax reform

2 March 2016

The First Minister visited Lasswade High School to announce a set of reforms to council tax in Scotland that will raise an additional £100m per year, which will be invested in schools through future local government settlements.

FM Nicola Sturgeon arrives at Lasswade High School

Delighted to welcome the First Minister @LasswadeHSC – an opportunity to Showcase what a positive place it is to learn and work #DREAM

— Lasswade High School (@LasswadeHSC) March 2, 2016

Under the plans, three out of every four households in Scotland will see a reduction in or no change to what they pay as a result of council tax band reform. The Council Tax Reduction (CTR) scheme will also be extended to exempt those in affected bands on net median incomes up to £25,000.

The CTR scheme will be enhanced to extend the relief available for 77,000 low income households with children by an average of £173 per year, benefiting nearly 140,000 children.

The majority of households in the higher bands E to H will be asked to pay more, but this is within the context of a freeze in bills since 2007-08.

Average council tax bills under the reformed system will also be lower than they would have been in the absence of the council tax freeze.

The First Minister said:

“These proposals will protect household incomes, support investment in our schools, make local taxation fairer and ensure local authorities continue to be properly funded while becoming more accountable.”

During her visit, the First Minister dropped in on a home economics class, and joined in as the pupils made some breakfast bars.

FM @NicolaSturgeon helps S1 pupils with breakfast at @LasswadeHSC pic.twitter.com/6k3t1Dmx62

— First Minister (@ScotGovFM) March 2, 2016

Later, she finished a round of media interviews by being interviewed by the school’s head boy and head girl on the announcement she had made.

.@LasswadeHSC pupils Carys Ross & Blair Jones interview FM @NicolaSturgeon on council tax plans pic.twitter.com/WddiMjQaHt

— First Minister (@ScotGovFM) March 2, 2016

You can see the interview here:

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The FM describes Lasswade As perfect example of work being done to improve education. @LasswadeHSC @ScotGovFM pic.twitter.com/ahjywGKmGe

— Midlothian Council (@midgov) March 2, 2016

Find out more about the Council Tax Reform

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