Proposed council tax hike will cost Angus residents £2.5m

The hike would hit those in bands E to H and would be phased in from 2024 onwards.

By Liam Rutherford Local Democracy Reporter

August 28 2023, 2:13pm

Councillors approve response that sits in favour of proposed national council tax hike. Image: Google maps

A proposed national council tax hike will cost Angus residents £2.5m, a new report has revealed.

The Scottish Government has suggested an increase of up to 22.5% for the highest tax band, with rises only affecting properties in bands E to H.

Angus councillors will consider the proposals at a meeting on Tuesday and concerns have already been raised about how people in larger homes will meet the cost.

The county currently has among the lowest council tax rates in Scotland.

Despite the £2.5m going to council coffers, officials have warned this will not be enough to prevent cuts to services.

Angus Council’s director of finance, Ian Lorimer. Image: Paul Reid

In a report for the council’s policy and resources committee, Ian Lorimer, director of finance, said: “The proposed changes are not a solution to the council’s financial challenges – further reductions in spending and services are still likely to be required if the proposals go ahead.

“But the extent of those reductions will be less than would otherwise be the case.”

Worries over vulnerable homeowners

Concerns have also been raised about the impact this proposal might have on more vulnerable residents in the area.

The council highlighted in a consultation response that “there could be an impact on older people who reside in e.g. a large family home in one of the higher bands if their wealth is mainly in property rather than in available income.”

The “bombshell” rise in council tax has been a hot topic across the country with worries over the fairness of the proposal.

When will these changes happen?

If approved, the council tax rise will be phased in.

Rates for band E properties would increase by an average of 7.5%, while band F properties would see a 12.5% rise.

Those in band G properties would pay an average of 17.5% more each year, while band H properties would see their bills rise by up to 22.5%

Research by the The Courier indicates this would affect around 95,500 homes across Dundee, Fife, Angus and Perth & Kinross.

Mr Lorimer added in his report: “While a transition period to implement the changes would mean a phasing in of the additional income which could be raised, it feels like an appropriate step in this instance given the many other pressures on household finances at the current time.”