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SNP “stealth tax” will see north-east residents fund schools in Glasgow

Willie Rennie
Willie Rennie

North-east taxpayers will be squeezed for tens of millions of pounds under a new SNP “national stealth tax” – to fund services in places like Glasgow.

A shocking new analysis has revealed Aberdeenshire residents will cough-up as much as £30million in extra council tax over the next five years to be pumped into schools elsewhere in Scotland.

In Aberdeen, families will pay-out £17million to be spent on educating children elsewhere in the country over the same period.

Highland taxpayers will see more than £5million of their money spent elsewhere.

The revelation has prompted calls for the SNP to rethink their controversial changes to local taxation.

From next year, the Scottish Government intends to raise council tax for Band E homes by 7.5%, rising to 22.5% in Band H properties, the equivalent of an extra £554 a year in Aberdeen.

But the additional revenues will be clawed back by central government and put into the Attainment Fund, to then be distributed to schools across the country based on the number of pupils receiving free meals.

The Scottish Government has defended the policy, insisting the policy “will play (its) part in improving the life chances in Scotland’s young people”.

But Liberal Democrat leader Willie Rennie said: “The SNP is intent on strengthening its stranglehold on local government, forcing councils to collect more tax and hand it straight to ministers to spend elsewhere in the country.

“This analysis shows that Aberdeenshire residents are to be hit by a £41 million tax hike but just £11 million of it could come back to improve schools in the area.

“People rightly expect their council tax to go towards delivering local services however we are seeing Aberdeenshire paying the price of the SNP’s regressive tax policy.

“They will be outraged that the Scottish Government, too timid to increase the taxes it directly controls, is demanding local authorities do the dirty work so it can be seen spending the cash.

“This national stealth tax shows complete contempt for local autonomy and is a fundamentally unfair way to generate the funds that our schools so desperately need.”

The SNP had pledged to scrap the council tax in their 2007 manifesto, before freezing it for eight years.

Ahead of May’s election First Minister Nicola Sturgeon confirmed she intended to raise council tax for homes in Band E and above, while keeping it frozen for lower bands.

The additional cash raised will go into the Scottish Government’s Attainment Fund.

Elsewhere in the north of Scotland, taxpayers in Shetland will see £100,000 of their money spent elsewhere over the next five years, while Orkney will lose £7,000.

Moray, however, will receive an estimated £38,000 more than the local take from the increase in council tax, according to the figures, which were calculated by the Scottish Liberal Democrats.

But a Scottish Government spokeswoman disputed their analysis.

She added: “Our reforms to the council tax will protect household incomes, make local taxation fairer and ensure local authorities continue to be properly funded while becoming more accountable.

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“There will be no change for three out of four Scottish households in terms of how much council tax they pay as a result of these reforms.

“These reforms will play their part in improving the life chances of Scotland’s young people, giving our children the best possible start in life and ensuring a more prosperous nation.”