MSPs vote down council tax reform despite agreeing situation 'absurd'

Green MSP Ross Greer had tabled proposals for a shake-up of the "discredited" system, which is based on property values from 1991. Experts previously estimated more than half of properties are in the “wrong band”.

The Greens say many of those living in smaller and less valuable homes pay more than they should. Meanwhile, the richest people living in the largest properties often pay far less than they would if accurate property values were used.

The party said its plans would have made the system fairer while raising vital funds for local services such as schools and social care.

Mr Greer lodged amendments to the Housing (Scotland) Bill which, if passed, would have seen a revaluation exercise completed by April 1, 2029. However, this was rejected by the other Holyrood parties.

Tory MSP Graham Simpson said the current system was “clearly absurd, but if you were to change that and revalue, there would be winners and losers”.

He told the committee: “If you just look at the revaluation issue, it is indeed quite absurd, but the bill might not be the place to deal with that. Frankly, Parliament has been playing around with the issue for far too long.

“I think that it falls into the ‘too difficult’ pile, and that is probably why parties will not deal with it. However, the issue needs to be dealt with, and it is probably one for the next session of Parliament. I am sorry to say that, Mr Greer, but that is the reality.”

Fellow Tory MSP Meghan Gallacher agreed the bill was “not the correct mechanism to make those changes”, adding: “A wider piece of work would need to be undertaken, not just by the committee—which we have already tried to do— but by the Scottish Government, which would need to decide whether to introduce legislation on council tax reform.”

Labour MSP Mark Griffin said having a 1991 valuation system was “ridiculous”. However, he said the proposals needed “a legislative vehicle of their own, to get the proper scrutiny that they deserve.”

Paul McLennan, the minister for housing, told the committee: “There is broad agreement on the need for council tax reform, but views differ on how it should be reformed.

“The Scottish Government and the Convention of Scottish Local Authorities have announced a joint programme of engagement to build consensus on long-term council tax reform. A revaluation exercise might look different depending on the form that that ultimately takes.”

Mr Greer, whose plans were voted down by SNP, Labour and Conservative MSPs on Holyrood’s local government and housing committee, said: “We wouldn’t tolerate a situation where most people pay the wrong rate of income tax, so why do all other parties think it's acceptable for council tax?

“Using property values from before I was even born means that low-income families in smaller houses typically pay more than they should, whilst the richest get off with an absolute steal.

“Every other party agrees this is wrong, but they just don’t want to upset the wealthiest people in Scotland, who would pay far more if the system was fixed.

“That’s the only reason for other MSPs to accept that the current situation is ‘absurd’ and ‘ridiculous’, but then vote against fixing it.”