Moray Council considers plans to break council-tax freeze

Moray Council could become the first local authority to raise council tax under budget proposals which could see bills increase by almost a fifth.

The council's ruling administration group said the increase was essential if frontline services are to be protected as it is facing an £11.9 million deficit over the next year.

Other local authorities including Highland and Fife councils are also understood to be examining the council-tax freeze as they prepare their budget proposals.

None of Scotland's 32 local authorities have increased the tax since the Scottish Government introduced the freeze in 2007.

Moray Council's 18% rise would see the annual cost for an average Band D property rise from £1,135 to £1,339.

The increase would raise £5 million next year but failure to maintain the freeze could result in a financial penalty being levied by the Scottish Government.

The proposals from the council's independent-Conservative administration group will be put before councillors at a special meeting next month.

Council leader Stewart Cree said the local authority's funding allocation announced last month by Finance Secretary John Swinney had put services seriously under threat''.

The administration group have examined all realistic options very closely but this level of financial reduction has placed an entirely new dimension on our deliberations,'' he said.

On considering the increase in council tax, he added: In so doing, we are aware that we will have penalties imposed on us by the Scottish Government and we will forfeit the £1.1 million that we are currently allocated to offset the council-tax freeze.

However, in light of the scale of the deficit we are facing, this £1.1 million pales into insignificance when the only alternative would be further cuts to services - or even the loss of some services altogether.''

Highland Council's independent-led administration is also examining whether it should end the council-tax freeze.

The council's budget chairman, councillor Bill Fernie, told the Press and Journal newspaper: We're still firming up what we're going to do and we've got to speak to opposition groups as well.

We would certainly take more confidence if a few more councils around us - for example Moray or Argyll and Bute - were like-minded.''

Fife Council members are also studying budget proposals, including the possibility of ending the freeze, ahead of a meeting next month.

Council leader David Ross told the Courier newspaper: In summary, we are facing a hugely difficult financial situation, both next year and over the next three years.

It isn't in tablets of stone, it's for the basis of consideration over the next few weeks and I hope we can have that debate in a reasonable and responsible manner.''

The Commission on Local Tax Reform, set up by the Scottish Government, recommended last month the current council-tax system should be scrapped and alternatives put forward to voters at the Holyrood election in May.

A spokesman for council group Cosla said it had been given a crystal-clear steer from council leaders at the end of December that the package of measures for local government within the Budget, including the council-tax freeze, is totally unacceptable''.

He said Cosla is still in active negotiations with the Scottish Government around the 2016/17 settlement''.

Scottish Labour said the Scottish Government's budget had pushed local services to breaking point''.

Jackie Baillie, the party's public services spokeswoman, said: Scottish Labour believes we should replace the council tax with a fairer alternative and we will set out our plans to reform local government finance in the coming months.''

She added: The truth is that council tax only accounts for a fraction of all revenues raised.

The reality is that it is John Swinney's budget choices that will put local services like schools and social care under threat.''

Gary Coull, SNP opposition group leader for Moray Council, said: Once again we are seeing this independent/Tory administration getting Moray in the national headlines for all the wrong reasons.

This is a massive hike being proposed by the independents and Tories, and will really hit the pockets of Moray people who are already facing high living costs combined with frozen wages.''

Local SNP MP Angus Robertson and MSP Richard Lochhead also condemned the plan.

Mr Robertson said: Hard-pressed families in Moray are struggling with the day-to-day cost of living while Tory and independent councillors appear incapable of finding serious savings despite having had months and even years of opportunity to do so.''

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