Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

Scottish budget: 5 things you need to know as households get £150 council tax rebate

Finance Secretary Kate Forbes confirmed a £290 million package of support for struggling households.
Finance Secretary Kate Forbes confirmed a £290 million package of support for struggling households.

Nearly two million households in Scotland will receive a £150 council tax rebate in April, under new measures announced at Holyrood.

The rebate works out at just over £47m across the north and north-east for people in council tax bands A to D.

Finance Secretary Kate Forbes confirmed a £290 million package of support as she outlined the final tweaks to the government’s spending plans for the year ahead.

All the £290m will be spent directly on helping struggling families hit by rising energy bills – but Ms Forbes admitted it “is not enough”.

The budget – the first full review by the SNP-Green administration – passed its third and final stage on Thursday by 69 votes to 54.

Here are the key measures in the spending plans:

1. Cashback for cost of living crisis

UK Chancellor Rishi Sunak confirmed last week that additional cash would be given to Holyrood after Ofgem revealed energy bills could surge by 50% from April.

Ms Forbes confirmed the full £290m will be passed on to help families now amid a cost of living crisis.

This cash will be spent on:

  • All homes in council tax bands A-D will receive a £150 payment or discount from their council tax bills.
  • This will also include every household in receipt of Council Tax Reduction in all council tax bands.
  •  £10m to continue the Scottish Government’s Fuel Insecurity Fund. This will help households at risk of self-disconnection, or self-rationing their energy use, due to unaffordable fuel costs”.

The council tax rebate means 1.85 million, or 73% of all households, will receive £150 of support.

Councils will have a choice – they can either deliver a direct payment or a credit to council tax accounts.

Energy bills are soaring as a result of global demand.

However, the finance secretary admitted it is an “imperfect scheme” and does not go far enough to support Scots hit by rising energy bills.

Ms Forbes told MSPs: “In terms of the challenges that we face right now, I think the measures that we have outlined will only go so far.”

2. Omicron cash commitments

There was some welcome news for business with details provided on a previously-announced £276m package of Omicron business support funding.

This is to be spent in the current financial year.

An additional £3m will be spent to support city centres in their recovery. Pictured is Union Street, Aberdeen.

The measures, which focus on economic recovery, include:

  • An additional £16m for culture and major events that have faced cancellations.
  • An additional £3m for city centre recovery to improve footfall.
  • £6.5m for the childcare sector to provide one-off grant payments to childcare services.
  • £3m to help digitalise small and medium-term enterprises (SMEs).

The Federation of Small Businesses in Scotland warned more needs to be done to help local and independent firms facing spiraling overheads.

3. Clash with UK Government

The UK Government was criticised for failing to give clarity over available funding for Scotland.

Chancellor of the Exchequer Rishi Sunak.

Ms Forbes told MSPs the position shifted last week with the announcement of a £2 billion relief package.

She added: “The changes to date, in a very short space of time, are significant.”

4. Council tax charges set to rise

Scottish councils have been given “complete flexibility” to set council tax rates, ending the previous freeze.

Extra funding was announced by the UK Government last month, which enabled Scottish ministers to commit an extra £120m to councils in the budget.

However, local authorities still face a real-terms cut of £251m, leaving many facing tough choices with regards to public services.

The additional £120m of funding is the equivalent of a 4% increase to council tax.

The finance secretary was clear that there is no need for any “inflation-busting” council tax rises as a result. 

But it remains to be seen what individual councils will choose to do with the local tax.

Almost three quarters of households will get some help by being eligible for the £150 council tax rebate.

5. Anti-poverty charities not impressed

The package of support on offer to help Scots households with the cost of living crisis has “repeated the mistakes” of the UK Government’s approach, anti-poverty charities have warned.

The Joseph Rowntree Foundation (JRF) and the Poverty Alliance said more support should have been targeted towards low-income households.

£150 will barely touch the sides of the gaping hole in many low-income households’ budgets, many of whom are already facing hunger, anxiety and debt.”

Chris Birt, Joseph Rowntree Foundation

Chris Birt of the JRF said: “By largely copying the approach of the Chancellor, the Scottish Government has repeated his mistakes and provided cold comfort for families on low incomes in Scotland.

“While many people currently living in poverty will receive this small payment, many more people who are not in poverty will too, meaning the available funds are spread far too thinly.

“£150 will barely touch the sides of the gaping hole in many low-income households’ budgets, many of whom are already facing hunger, anxiety and debt.

“There was no perfect solution available to the Finance Secretary, but this isn’t a good one.”

Family budget
Rising fuel costs have pushed many families into poverty.

Peter Kelly, director of the Poverty Alliance, said the measures “fail to properly target support at people on the lowest incomes”.

Claire Telfer, Save the Children’s Head of Scotland, welcomed the £150 payment, but said “many of those on the lowest incomes don’t pay council tax and so won’t receive this extra support”.

She added: “Millions of parents will be lying awake tonight trying to figure out how to keep their families afloat in the months ahead. The steps announced won’t entirely ease those fears.”

Ms Forbes addressed criticism in the debate, stating she could have followed a “far more targeted approach” if the government had “full levers of a social secruity system or tax system”.