First Minister Humza Yousaf made the announcement on Tuesday, much to the surprise of East and South Ayrshire Councils.
Council budget plans have been thrown into disarray after the First Minister’s announcement that there will be a council tax freeze next year. North, South and East Ayrshire have increased their council tax levels in the two years since the SNP government scrapped a long standing policy of freezing council tax.
The Scottish Government says that the freeze with be ‘fully funded’ and a ‘one off’. However, Depute First Minister Shona Robison said that she acknowledged that different councils have based their budgeting plans on different levels of tax increases and said that the level of funding would need to be negotiated with COSLA.
“Only once details of any intended funding level and any potential associated conditions are provided, will the impact of the proposal on the council’s own budget become clearer. The council is currently progressing work on the 2024/25 budget based on a number of assumptions which are updated as expenditure and funding information is clarified, and this work will continue as we await further details.
The First Minister said: “Council tax is already lower in Scotland than elsewhere in the UK, and some 2.5 million households will now benefit from this freeze. Of course, the public sector across the UK is facing budget pressures as a result of UK Government austerity, and we know councils are facing financial challenges themselves.
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