Aberdeen council tax: 10% rise ruled out by SNP but doubt remains over incoming hike

By Alastair Gossip

February 21 2023, 6:00 am

Aberdeen council tax rates will be agreed on March 1. A 10% council tax rise has been ruled out after The P&J exclusively revealed the recommendation outlined in a leaked dossier. Image: Roddie Reid/DC Thomson.

A 10% council tax rise in Aberdeen looks to have been ruled out – after The Press And Journal revealed city officials were pressing for the hike.

A confidential brief prepared ahead of the council budget meeting on March 1 showed finance chiefs were campaigning for the huge increase.

Both Labour and Conservative councillors balked at the suggestion – pressuring the SNP and Liberal Democrat leadership to rule it out publicly.

Sharing control of the council, the SNP and Lib Dems together command a majority in the coalition.

The SNP, by far the largest group on the council, has now ruled out a 10% hike.

But they won’t say what they will do instead.

When will Aberdeen council tax levels be set?

Councillors will have the final say on the annual budget a week on Wednesday.

It remains unclear what level of council tax increase the SNP and Liberal Democrats will bring forward.

SNP co-leader Alex Nicoll has ruled out a 10% council tax rise in Aberdeen this year. But - as a spokesman told The P&J - there are "no budget previews" ahead of March 1's meeting. Image: Kenny Elrick/DC Thomson. — SNP co-leader Alex Nicoll has ruled out a 10% council tax rise in Aberdeen this year. But – as a spokesman told The P&J – there are “no budget previews” ahead of March 1’s meeting. Image: Kenny Elrick/DC Thomson

All SNP council co-leader Alex Nicoll would tell us was: “SNP councillors on Aberdeen City Council will not be proposing a council tax rise of 10% at the budget meeting.

“This is simply Labour and the Tories, who worked together for the last decade in coalition, trying to scaremonger ahead of the upcoming by-election.”

With a 10% rise off the table, what change could come instead?

With a 10% rise now ruled out, opponents are trying to limit any increase.

Currently, council tax brings in around £129.2 million for the local authority each year.

The recommended 10% increase would have brought in another £12.9 million annually.

A 4% rise, matching Aberdeenshire Council, would bring in £7.8 million less.

Instead of the £141.38 annual rise in council tax bills for a Band D property the 10% rise would have brought, a four per cent rise would up bills by £56.38.

Here are the options, and how much income they would generate, which are being put to councillors:

What will Aberdeen’s opposition parties do on council tax?

Both Labour and the Conservatives blame the Scottish Government for the bleak prospect of steep council tax rises in Aberdeen.

This year’s council funding settlement, and uncapped council tax rises, left decision-makers in little doubt that the council taxpayers were expected to make up any shortfall.

Aberdeen Labour’s candidate in the Dyce, Bucksburn and Danestone by-election, Graeme Lawrence, said years of campaigning for a fairer deal for the Granite City had fallen on “deaf ears”.

Aberdeen Labour's by-election candidate said families were being "squeezed" by both governments. Image: Scottish Labour. — Aberdeen Labour’s by-election candidate said families were being “squeezed” by both governments. Image: Scottish Labour

“In the middle of a cost of living crisis, were the SNP seriously considering increasing council tax by 10%?” he added, describing the situation as the “bitter harvest” of 15 years of SNP rule at Holyrood.

“An increase of that size would impact significantly upon hard-working families who are already being squeezed by the failure of both the UK and Scottish governments.

“After 10 months, citizens can see the SNP’s priorities at the Town House: cutting public services, outsourcing statutory functions, increasing parking charges and even considering increasing council tax by 10%.”

Ruling partnership ‘too afraid’ of SNP Scottish Government to call out bad funding deal, claims Tory leader

Meanwhile, Conservative group leader Ryan Houghton told The P&J his group would continue to oppose a steep council tax rise – as well as the incoming tripling of the cost of some parking permits.

Conservative group leader Ryan Houghton accused the SNP and Lib Dems in charge of the council of being "too afraid" of the Scottish Government to call out the poor funding the city receives - which has left decision-makers with little choice but to raise council tax in Aberdeen. Image: Jim Irvine/DC Thomson. — Conservative group leader Ryan Houghton accused the SNP and Lib Dems in charge of the council of being “too afraid” of the Scottish Government to call out the poor funding the city receives – which has left decision-makers with little choice but to raise council tax in Aberdeen. Image: Jim Irvine/DC Thomson

He added: “The Conservatives will continue to oppose these measures and put forward a fair and balanced budget on March 1.

“The SNP/Lib Dem administration was handed record-level reserves and an in-year surplus.

“Any decision to increase council tax by extraordinarily high amounts is a result of their priorities and a poor deal from the SNP Government which they’re afraid to call out.

“It’s time for the SNP/Lib Dems to start explaining what those who voted for them in good faith are getting out of this administration apart from increased bills, a closed swimming pool and the stopping of thousands of new houses.”