First Minister Humza Yousaf has called on councillors in Argyll and Bute to reconsider imposing an “unjustifiable” 10% increase in council tax bills.
Revealing that the Scottish Government has written to council leaders in the area, offering “further conversations” with them around funding, Mr Yousaf insisted he still hoped there could be a nationwide freeze on the charge.
He had pledged in his speech to the SNP conference last October that council tax bills across Scotland would be frozen in 2024-25, to help those struggling during the cost-of-living crisis.
But a failure to consult with council leaders ahead of the speech left them furious at the move – with this exacerbating tensions between the Scottish Government and local authorities over funding.
Last week Argyll and Bute, which is run by a coalition of Conservative, Liberal Democrat and independent councillors, became the first area to defy the First Minister and vote for a rise in council tax.
But Mr Yousaf insisted that freezing the charge was still “the right thing to do.”
He said: “For those councils like Argyll and Bute, who I think unjustifiably raised their council tax in a cost-of-living crisis, they will have to answer to their constituents.”
The First Minister added: “I think we will get a council tax freeze, I would hope, right across the country, because we will continue to engage with Argyll and Bute. I think they should reconsider.”
The Scottish Government is providing councils with £147 million to compensate them for freezing the tax – which ministers insist is the equivalent of a 5% rise.
But crucially councils will not get this cash – or their share of a further £62.7 million offered by the government last week – if they do not agree to the freeze.
Mr Yousaf insisted his government had made a “very generous offer” to local authorities, who have been pressing the government to be allowed to make limited increases in council tax at the same time as receiving this cash.
But the SNP leader rejected calls for councils to be able to impose a capped increase, saying: “People in this country are living through one of the worst, if not the worst, cost-of-living crises we’ve ever seen.
“We can’t control every household bill, but there is one bill that can be controlled and that is the council tax. And we are, of course, providing the funding to local authorities for that.
“For them to then raise the council tax on households in the midst of a cost-of-living crisis I think would be the wrong thing to do.”
The First Minister told councils: “If you are not going to be freezing the council tax then why would we give you money towards freezing the council tax and indeed additional funding as well.”
Speaking as he campaigned in an upcoming Glasgow Council by-election, Mr Yousaf insisted it was “unacceptable” for leaders in Argyll and Bute to impose a 10% rise on residents.
He told reporters: “We will keep negotiating and having conversations with Argyll and Bute.”
His comments came as Deputy First Minister Shona Robison stressed the funding arrangements the government has put in place are not aimed at punishing those authorities who fail to agree to a freeze.
Ms Robison, also the Scottish Finance Secretary, told BBC Radio Scotland: “This isn’t about punishing councils. It’s about recognising that taking together the funding that we’re providing – the additional funding – is nearly £210 million.
“So I don’t think it’s unreasonable that council tax payers see some of the benefit of that.
“And we believe that at a time when rising prices are putting significant strain on household finances, that the council tax freeze gives some support to households over the coming year.”