John Swinney expresses concern over 'eye-watering' Scotland council tax hikes of up to 15%

The First Minister insisted the Scottish Government had “done its bit” by providing local authorities with an extra £1 billion compared to last year.

He argued a substantial chunk of the planned increases was a direct result of the UK government’s decision to hike employer National Insurance contributions.

Scots are facing some of the biggest council tax increases in 20 years. Councillors in Orkney voted in favour of a 15 per cent rise, and North Lanarkshire and Scottish Borders councillors are both backing 10 per cent increases.

Residents in Falkirk are facing an 13.7 per cent hike, which have been described as “eye watering” by the Scottish Conservatives. Edinburgh has backed an 8 per cent increase and councillors in Glasgow have agreed a 7.5 per cent rise.

Speaking to journalists on Wednesday in Bute House, his official residence in Edinburgh, Mr Swinney said: “I’m obviously concerned by significant council tax increases.”

He referenced the previous comment he made to The Scotsman, in which he argued 10 per cent hikes were too high and not necessary.

The First Minister added: “The Government has done its bit. Local government asked us for a real-terms increase in the core local government settlement and we gave that.

“We’ve increased local authority funding by a billion pounds. But I do acknowledge that there are real challenges in the delivery of public services.”

He continued: “One of the issues which I think is fuelling the council tax increases is the implications of employer National Insurance contribution increases.

“I think if you look at the calculation of the impact of that, I think it would be reasonable to say that probably 3 to 4 per cent of council tax increases are a product of the employer National Insurance contribution increases.

“And even then, I’m not sure that will mitigate all of the impact of the employer National Insurance contribution increases.”

Mr Swinney referenced the impact on social care providers, “who are not getting compensation for the increase in costs”.