Scotland's political parties urged to commit to abolishing council tax

Tax Justice Scotland, a campaign group backed by more than 50 organisations and individuals, including charities, trade unions and the Kirk, called on politicians to “grasp the jaggy thistle of real reform”.

Council tax is based on property values from 1991, and experts estimate more than half of properties are in the “wrong band”. The Institute for Fiscal Studies described it as “ripe for reform” in a report published earlier this year.

However, this is seen as politically difficult, because any revaluation will likely lead to wealthier Scots paying more. In June, SNP public finance minister Ivan McKee said a revaluation was “absolutely needed”, adding: "The reality of that is that there will be winners and losers, and that's really important to recognise."

However, the Scottish Government later poured cold water on this, and suggested substantial reform will not be possible this decade.

Tax Justice Scotland said local authorities are now relying on a system that perpetuates “deep and persistent unfairness”, leaving local public services – such as schools, social care and libraries – under growing pressure.

It called on parties to commit to abolishing the tax ahead of the Holyrood election next year, replacing it with a “fair, modern property tax”.

The campaign group said ministers should launch a national revaluation of property as a first step following the election, and ensure the new system is “local, proportional, and protects those on low or fixed incomes”.

The SNP has long promised to reform council tax. Its 2007 manifesto pledged to scrap it and replace it with a local income tax. Its 2021 manifesto said the party was still committed to reforming council tax to make it “fairer”, but would ask a citizens’ assembly to consider the way forward.

Ministers are now engaging with Cosla, the local authority body, to “build consensus around reforms”, before seeking the views of the public.

Scottish Labour’s 2021 manifesto pledged to abolish council tax and replace it with a fairer alternative, while the Tories said they would not support any overhaul in the absence of cross-party support for a reform proposal.

The Liberal Democrats promised to “restart the cross-party process to replace the council tax”, and proposed switching to a land value system. The Greens pledged to replace it with a tax related to property value.

Speaking on behalf of Tax Justice Scotland, Dave Watson, director of the Jimmy Reid Foundation, said: “We’ve had consultations, commissions and countless commitments, but little has changed.

“Decades of delay on council tax reform have deepened the crisis facing local services and locked in inequality. The 2026 election is the moment for Scotland’s leaders to move beyond words and commit to the fair, modern and proportionate tax system our communities deserve.”

Sara Cowan, director of the Scottish Women’s Budget Group, added: “The broken system of council tax hits women hardest, especially those holding up households, holding down low-paid jobs, and holding communities together.

“The evidence has been sitting on a shelf for years, and the consensus for what comes next is clear. We’re calling on every party leader to show courage and leadership by putting council tax replacement front and centre in their manifestos, so the next Scottish Parliament finally grasps the jaggy thistle and delivers real reform.”