Councillors in Dundee have backed government proposals to hike council tax rates, in a move that could cost Dundee residents £2.36m.
The Scottish Government, along with the the Convention of Scottish Local Authorities (COSLA), had previously proposed amending council tax rates to raise additional funds.
Under the proposed changes, those in the highest tax band could see increase of up to 22.5%, with the rise only affecting properties in bands E to H.
This would see over 10,500 households in Dundee hit by a minimum hike of £146 per year and up to £819 for the highest banded properties.
At a meeting of the city governance committee on Monday, councillors approved a response to the plan that is broadly supportive of the increase, with 15 voting in favour and 14 against.
Councillors came to blows during the meeting, with concerns that the tax hike would be detrimental for residents during a cost of living crisis.
Lib Dem councillor Craig Duncan, who represents the Ferry ward, was among those voicing his concerns.
He said: “Our group is quite genuinely shocked at how out of touch these Scottish Government proposals are at this difficult time for households and we really oppose the councils proposed response to the consultation which actually supports the tax hike.
“Lets bare in mind the we’ve sat here at committee several times and talked about cost of living crisis and so forth and I don’t really see how it would assist hard pressed people to be hit with additional taxes.”
A “hardship fund” for those struggling to meet the new cost was suggested as a mitigation to the increase.
Rates could rise as high as 22.5%
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%.
There would be no rise for bands A-D.
The increase on the current annual charge would be as follows:
Band E: £146.48
Band F: £301.93
Band G: £509.41
Band H: £819.39
‘It’s just another unfair tax’
Scottish Conservative Councillor Derek Scott also hit out at the proposed increase, raising concerns that homeowners who might be living in high tax band areas may not have the income to afford the tax hike.
He said: “It’s not the case either that those living in high council tax bands are wealthier, during a global cost of living crisis many homeowners won’t be able to afford such an extensive tax hike.”
Scottish Labour Councillor Kevin Keenan echoed these concerns, adding: “If the Scottish Government still want to keep council tax then they should re-band every home, there is no indication whether there is wealth in the bands that are there.
“It’s just another unfair tax.”
Councillors previously called for the proposal to be scrapped completely.
However some councillors raised concerns that the proposal was being rejected without a viable alternative solution in finding funds for the city’s already struggling public services.
SNP Councillor Nadia El-Nakla said: “No one else has came up with a solution or a comment that can go in the consultation.
“It’s a consultation, it’s your opportunity to bring forward to the administration what it is your think should happen instead of just slamming it down as being useless.”
Council Leader John Alexander also hit out at apposing councillors arguing against the tax increase.
He said: “It is not an acceptable position for any politician of any political party to say that they want to mitigate and prevent cut to services whilst also saying that they don’t want to generate any income from any measure being proposed.
“It is ridiculous to be in a position year on year where political parties, and I’ve mentioned a couple today, are backing away form proposals or thoughts around how they might generate income whilst also claiming to save the world.”
The Scottish Government has previously said council tax will remain the lowest in the UK and that measures will be put in place to ensure residents aren’t hit with a bill that they can’t pay.
