Calls to overhaul 'outdated and broken' council tax system as scale of Scots' debt revealed

Figures obtained by GMB Scotland show that 245,294 Scots had their debts escalated to the courts, with £989,081,529 owed to local authorities.

In addition to this, 1,610,863 residents were in council tax arrears and 1,231,640 were on debt management plans.

The true figures are likely to be far higher as breakdowns were only available for 20 of Scotland’s 32 councils.

Glasgow City Council had the most residents threatened with court action last year, at 52,658 people. In total, residents in the city owed the council £163,327,857.

This was followed by Edinburgh City Council with 51,537 residents threatened with court action and £126,668,885.21 owed, and Fife Council with 21,009 residents summoned and £124,111,061.79 owed.

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Of the councils that responded, the only one that did not threaten residents with court action was Western Isles Council, despite £5,819,866.55 being owed to the local authority and 4,552 residents being in arrears or on a debt management plan.

Craig Hoy MSP, the Scottish Conservatives’ finance spokesman, said: “The underlying problem is the SNP’s years of underfunding local authorities, which has seen councils struggle to provide frontline services.

“They’ve failed to address this issue for two decades, and hammered hard-working Scots to fund a ballooning and unsustainable benefits bill.

“It’s high time John Swinney’s government accepted economic reality, tackled reckless spending and reduced the tax burden on households.”

The Scottish Greens said these figures show why the “outdated and broken” council tax system needs to be urgently replaced.

Kristopher Leask MSP, the party’s local government spokesman, said: “It is a grave injustice for the people and families being punished by a system that everyone knows isn’t fit for purpose

“Currently, councils across Scotland are using an outdated system built on arbitrary valuations on what the property would be worth, if built in 1991.

“That is not a system anyone would design again from scratch, yet we are stuck with it through political choice alone.”

The Scottish Greens want to see council tax replaced with a residential property tax based on the real value of homes, with reliefs for those on low or “precarious” incomes.

Mr Leask added: “Councils need proper funding, but that must come from fair taxation, not by dragging hundreds of thousands of people through the courts over debts they cannot afford to pay from a council tax system we know is not functioning as intended.”

Scottish Liberal Democrats communities spokesperson Willie Rennie MSP said: “It’s clear that people across Scotland are struggling with the cost of living.

“If it comes down to a choice between feeding your family or paying your council tax it’s easy to see how some people should fall behind.

“The government needs to have the right measures in place to help those who fall behind through no fault of their own while ensuring that those who deliberately dodge their debts are properly penalised.”

Keir Greenaway, senior public sector organiser for GMB Scotland, said: “The UK Government recently reformed how council tax arrears in England and Wales are pursued leaving Scotland with the most draconian collection processes in the UK.

“If a tax penalises those least able to pay most harshly and needlessly drives them into poverty then that tax is not fit for purpose and Scotland’s council tax has not been fit for purpose for many years.

“It is outdated, unfair and broken beyond repair and the unbending inhumane way Scotland pursues public debt arrears is a national disgrace.”

Mr Greenaway said a new system is needed to make sure frontline services delivered by councils are properly and fairly funded.

A spokeswoman for the Scottish Government said: "The Scottish Government is providing record funding of £15.7 billion to local authorities in 2026/27.

“While responsibility for council tax collection rests with local authorities who have powers to manage and write off arrears, we are working with local government to improve fair debt recovery.

“This includes expanding debt advice and ensuring local authorities can identify vulnerable debtors through better access to information with new data-sharing initiatives.

“Nobody in Scotland should have to meet a council tax liability they cannot be expected to afford and the Scottish Government protects the most financially vulnerable through the council tax reduction scheme, which provides support to more than 450,000 households.

“Council tax reform requires evidence, consensus and a clear understanding of what should come next. The Scottish Government is working with local government to build cross-party agreement on the future of council tax in Scotland.”

Figures for other Scottish councils:

• North Ayrshire - £81,293,870 owed, 18,673 taken to court
• West Lothian - £39,445,477.55 owed, 14,351 taken to court
• Perth and Kinross - £38,344,473 owed 11,559 taken to court
• Falkirk - £39,849,296.51 owed, 11,497 taken to court
• Dumfries and Galloway - £4,219,441.46 owed, 11,234 taken to court
• Angus - £19,168,440 owed,10,816 taken to court
• East Lothian - £29,006,127.82 owed, 7,706 taken to court
• South Ayrshire - £47,830,346 owed, 7,566 taken to court
• Argyll and Bute - £27,776,140.19 owed, 6,348 taken to court
• Midlothian - £38,020,000 owed, 4,872 taken to court
• East Dunbartonshire - £31,450,905 owed, 4,518 taken to court
• East Renfrewshire - £16,586,888 owed, 4,201 taken to court
• Stirling - £14,482,592.46 owed, 3,437 taken to court
• Clackmannanshire - £11,015,992 owed, 2,794 taken to court
• Orkney - £2,937,612.97 owed, 617 taken to court.

On top of this, £187,604,785.60 is owed to North Lanarkshire Council and £45,121,469.95 is owed to Scottish Borders Council.