Most Scottish councils raise council tax bills by at least 5% for 2023-24

Most councils in Scotland increased council tax bills by at least 5% for 2023-24, according to data reported on 17 April 2023¹. Bills in Glasgow and Edinburgh rose by 5%, while rates in the Orkney Islands increased by 10%¹. Unlike England and Wales, Scotland set no cap on rate increases for the year¹.

The figures emerged alongside a joint Scottish government and Convention of Scottish Local Authorities (Cosla) consultation, launched on 17 April 2023, on giving local authorities the power to charge up to double the full rate of council tax on second homes from April 2024¹. Councils can already charge extra tax on long-term empty properties, and the proposal would extend those powers to properties such as holiday homes, including those in regular use by their owners¹. Government statistics show there were almost 70,000 second homes and empty properties in Scotland in 2022¹.

The 12-week consultation also asks whether rates on second and empty properties could be raised by more than double beyond next year, and seeks views on changing the definition of when a self-catered property becomes liable for non-domestic business rates. Currently that applies where a property is let for a total of 70 nights and available to let for 140 nights in a financial year¹.

First Minister Humza Yousaf set out the proposal at the Scottish Trades Union Congress¹:

He added that all responses would be "carefully considered" before legislation is introduced to the Scottish Parliament, and no date for that has been announced¹.

Council tax generates about 13% of local government funding in Scotland, with most council cash coming from the Scottish government¹. The reported rises follow pressure on council budgets from inflation and the cost of living¹.

Why it matters for households

Households in Scotland saw higher bills from April 2023, with the size of the increase depending on where they live: 5% in Glasgow and Edinburgh and 10% in the Orkney Islands, with most councils at 5% or more¹. Because Scotland set no cap, there was no national ceiling limiting what councils could charge for 2023-24¹. Council tax bands in Scotland are based on what a property would have been worth in April 1991¹.

For owners of second homes, the change is a proposal rather than a current charge. If approved, councils would be able to charge up to double the full rate from April 2024, and the consultation also asks whether increases beyond double should be possible after that¹. The consultation covers second homes and empty properties, and separately asks about the letting thresholds at which self-catered accommodation falls under non-domestic business rates rather than council tax¹.

What happens next

The consultation runs for 12 weeks from 17 April 2023¹. Responses will be considered before legislation is introduced to the Scottish Parliament, and a date for that has not been announced¹.