‘Piling on the misery’ – Edinburgh City Council accused over planned council tax rise

Edinburgh City Council has been accused of ‘piling on the financial misery’ of struggling capital residents after it was revealed the ruling coalition is planning on raising council tax three years in a row.

Edinburgh is set for another council tax hike

Edinburgh City Council has been accused of ‘piling on the financial misery’ of struggling capital residents after it was revealed the ruling coalition is planning on raising council tax three years in a row.

However, the SNP/Labour administration say the council is facing ‘challenging decisions’ and the ruling coalition will need to ‘think creatively about how best to refocus and reprioritise if we’re to help Edinburgh and our communities recover sustainably and fairly’.

Draft budget documents, sent to each political group on the council and seen by the Local Democracy Reporting Service, show the council is planning back-to-back tax increases of 4.79 per cent – despite capital residents still suffering from the economic and emotional cost of the ongoing coronavirus pandemic.

'Breach of trust' -Iain Whyte

Last year, the council raised the tax by 4.79 per cent, despite the SNP-Labour coalition pledging to only increase council tax by 3% each year up until 2021 as part of its coalition agreement.

The document also proposes a series of brutal cuts to the council’s budget – including a demand to make £5m of savings from homelessness services, and wiping £19.8m from the staff budget.

Leader of the council’s Conservative group, and councillor for Inverleith, Iain Whyte, said: “With so many people struggling with family budgets due to the impact of the pandemic on private sector businesses a huge, inflation busting council tax increase is the last thing they need.

“This would also be a huge breach of trust by the SNP and Labour for the second year running given their promise to hold any increases to 3%.

'Key aims' - Labour's Joan Griffiths

“It’s typical of them to want to pile on the financial misery while services decline.

“The UK Government has pulled out all the stops during the pandemic with support to businesses and individuals but this can only go so far.

“People need a break as we hopefully recover later in 2021 and that should mean a more efficient council not a more expensive one.”

The SNP’s Rob Munn, convener of the finance committee and councillor for Leith Walk, said: “When we come to discuss and set our budget in February we’ll undoubtedly be faced with challenging decisions.

“Our services have been affected – and many still are – by the impact of the Covid-19 pandemic and we need to think creatively about how best to refocus and reprioritise if we’re to help Edinburgh and our communities recover sustainably and fairly.

“Things are still only at the internal discussion stage but we’re exploring all options and won’t rule anything in or out until our formal budget setting meeting in February.

“We’ll be in a position to update our budget proposals further, if required, once the Scottish government announce their Local Government Finance Settlement later this week.”

Neil Ross, Liberal Democrat finance spokesperson and councillor for Morningside, said: "Year after year of Scottish Government cuts have left the council's finances in a perilous state. It is only because of the SNP's obsession with slashing local government funding that Edinburgh is faced with the dilemma of further council tax increases or cutting services.

"We will need to look carefully at the budget papers and see where efficiencies can be made. However, the answer cannot be even deeper cuts to the services which many of the most vulnerable in our communities rely on."

Labour’s Joan Griffiths, vice convener of the finance committee and councillor for Craigentinny and Duddingston, said: “We owe it to the people of this city to consider our budget prioritisation thoroughly, drawing upon the feedback we received from the 2,000-plus residents who completed our recent survey, amongst other feedback we’ve received.

“We’ll stay true to our commitment to invest in a balanced, fair way that takes forward our key aims of addressing poverty and inequality, cutting carbon emissions to net zero by 2030 and enhancing residents’ wellbeing.”

The leaked report, which outlines the local authority’s draft financial plans for the next few years, makes five budget assumptions:

There will be ‘full management of Edinburgh Integration Joint Board funding gaps in 2021/22 and in subsequent years’.An ‘assumed containment of homelessness pressures at £10m in 2021/22, with delivery of £5m of savings in 2022/23’.The ‘permissibility and levying of council tax increases of 4.79% in each of 2021/22 and 2022/23’.There will be ‘no specific additional funding to support priorities of tackling poverty and promotion sustainability and aspirations in schools’.There will be ‘a delivery of total management and staff-related savings of £19.8m by 2022/23’.

Following the increase, council tax in 2021/22 across all bands will be as follows:

Band A – £935.13Band B – £1091Band C – £1246.85Band D – £1402.71Band E – £1843Band F – £2279.40Band G – £2746.97Band H – £3436.64

Following the second increase, council tax in 2022/23 will be as follows:

Band A – £979.92Band B – £1143.26Band C – £1306.57Band D – £1469.90Band E – £1931.28Band F – £2388.58

Band G – £2878.55Band H – £3601.25

Edinburgh City Council has been asked to comment on the budget proposals. Every local authority in Scotland is facing hard decisions on its finances due to the impact of Covid-19 on income and additional expenditure.

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