MINISTERS WERE last night considering sweeping changes to Scotland’s local councils in the face of a growing revolt over soaring council taxes, write Steve Bargeton, political editor, and Graham Huband.

On the cards is another massive local authority shake-up which could see Dundee take in parts of Angus and Perthshire hived off in the last restructuring in the 1990s.

Many Labour MSPs, stung by the jibe that council tax has rocketed 55% since Labour came to power in 1997, believe the current system of 32 local authorities is no longer sustainable.

Yesterday Finance Minister Tom McCabe gave the clearest signal yet that he was planning to do something about it.

He singled out Dundee and the surrounding area as a prime example of why radical change is needed.

“The 32-council system was set up for all the wrong reasons by the Conservatives in the mid 90s. Everyone recognised that at the time,” he said. “I don’t see anything that has happened to change that view.

“I think there are certain areas where clearly, an area like Dundee is a good example, where economically active people are moving out to more prosperous surrounding areas, the people who use the services are remaining there, the overall cost of those services is going up.

“An area like Dundee has been constantly squeezed. I don’t think that we can over a long period of time simply sit back and watch that situation continue.”

Asked if he would expand Dundee City Council to take in its environs, Mr McCabe said, “I would discuss these matters with the relevant people in that city and the surrounding areas. It is not for me just to arbitrarily announce how I am going to restructure local government.”

He said he is also prepared to have “a root and branch analysis” with the Convention of Scottish Local Authorities of the way local authority finance is distributed.

Last night Dundee West MSP Kate Maclean (pictured) said, “I would agree with the minister that the situation in Dundee is not sustainable.

“The way local authority finance is distributed is detrimental to Dundee. Recognition needs to be taken that Dundee is a regional centre providing services to people who live in surrounding areas.

“There has to be recognition for changing the way local authority finance is distributed or for extending the boundaries.”

Dundee East MSP Shona Robison said, “It seems ironic that on the eve of a bad (financial) settlement (for Dundee) he is now raising the idea of a review of the boundaries. He could have given Dundee some relief with a better settlement but he chose not to do so.

“His word will sound hollow to hard-pressed Dundee council tax payers. This is just a smokescreen to divert attention away from the poor settlement Dundee was given.”

The question of the city boundary has been an open political sore since affluent areas like Monifieth and Invergowrie were removed from Dundee when the regional council system was dissolved in the 1990s.

Dundee City Council’s administration leader Jill Shimi said last night, “It is very encouraging that Tom McCabe is so positive about looking at Dundee’s situation and homing in on Dundee’s unique problems.

“What we are looking to do is improve the financial plight of the city of Dundee. We are looking at all the factors that impact on that and one of these issues is undoubtedly the boundaries.

“Tom McCabe is keen to examine Dundee’s financial plight and you can’t discuss Dundee’s financial position without seeing it in the context of the existing boundaries and the impact of losing its former, larger boundaries.

“It would be fair to say that for the senior members of Dundee City Council this is not the first time they have taken the case for (a review of) boundaries to a higher political level.

“It is encouraging to note the willingness of the finance minister to examine our case.”

Rob Murray, Angus Council leader and Monifieth Central councillor, remains implacably opposed to a redrawing of boundaries that could see his constituency return to Dundee.

He said, “My own view is this is an outburst, a fit of pique. He is threatening to reorganise local government because CoSLA challenged him over his local government settlement figures for 2006/07 and 2007/08.

“Dundee was specifically mentioned by the minister but additional funding levels given to Dundee certainly account for many of the aspects within the points he was making.”