Question reference: S5W-27198
- Asked by: Tom Arthur, MSP for Renfrewshire South, Scottish National Party
- Date lodged: 30 January 2020
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Current status: Initiated by the Scottish Government. Answered by Derek Mackay on 31 January 2020
Question
To ask the Scottish Government when it will confirm the next local government finance settlement, including what years it will cover, and any plans for council tax flexibility.
Answer
Details of the local government finance settlement for 2020-21 will be confirmed as part of the Scottish Budget on 6 February. In coming to my decision to announce the Scottish Budget before the outcome of the UK Budget is known I listened carefully to the representations COSLA made on behalf of local government of the damaging impact any further delay would have on the delivery of vital public services and also the practical challenges this would pose around the setting and collection of council tax.
COSLA have welcomed the move to bring forward the Scottish Budget and also confirmed that given the exceptional circumstances around timing and that the UK budget is for one year only they are not seeking multiyear indicative allocations at this time. COSLA have, however, requested as early confirmation as possible of any parameters that will apply to Council tax levels.
Set against the exceptional circumstances of the delayed Budget and restricted timetable we are faced with this year, and to help councils with their budget preparations, I can confirm that the local government settlement will include confirmation that local authorities will again have the flexibility to increase their council tax levels by up to 3 per cent in real terms (equivalent to 4.84 per cent cash) for 2020-21.