Greens propose long overdue Council Tax revaluation to make wealthy pay more
Scottish Green MSP Ross Greer has lodged proposals for Scotland’s first Council Tax revaluation in over 30 years.
The current Council Tax system is based on property values from 1991. As a result, most people are now in the wrong band.
Many of those living in smaller and less valuable homes currently pay more than they should. Conversely, the richest people living in the largest properties often pay far less than they would if accurate property values were used.
The Scottish Greens are confident that the proposal, which is being made as an amendment to the upcoming Housing (Scotland) Bill, would not only make the system fairer, it could also raise vital funds for local services like schools and social care.
If the amendment is passed, a revaluation exercise would be completed by 1st April 2029. Measures have been included to support those on low and fixed incomes.
Mr Greer said:
“The Council Tax is based on property values from before I was even born and as a result, it is now completely broken. We wouldn’t tolerate most people paying the wrong rate of income tax, but that is exactly what has been allowed to happen here after 34 years.
“The wealthiest people in the most valuable houses are getting off with an absolute steal. They pay far less than they should, whilst far too many ordinary households pay much more.
“It may sound dry, but the Council Tax is crucial to funding schools, social care, bin collections and other local services. It should never have been allowed to become this completely broken."
Mr Greer added:
“This system was a quick and dirty replacement for Thatcher’s hated Poll Tax. Everyone has agreed for years that it must be replaced completely. Despite this, the Scottish Government has lacked the courage to actually make that change.
“The Scottish Greens have made some important changes recently, including doubling Council Tax for second homes to help tackle the housing crisis. However, we know that total reform is urgently needed. That can’t happen without ditching the 1991 property valuations and bringing the system into this century.
“Those with the broadest shoulders and in the biggest houses should be paying more than those less privileged to fund the local services we all rely on.”
Council Tax reform is championed by the Tax Justice Scotland network, whose members include Oxfam, the Scottish Trade Unions Congress, the Church of Scotland and the Scottish Women’s Convention.
The Institute for Fiscal Studies described Scotland’s Council Tax as ‘ripe for reform’ in a report published earlier this year.