"Jack McConnell reiterated his message yesterday that there was "no need" for local authorities to raise council taxes above 2.5 per cent. But the councils immediately hit back, warning that the Executive had not given them enough money to fund frontline services.
Senior local government sources admitted that many councils would simply not be able to keep to Mr McConnell's inflation limit and would impose council tax rises well in excess of 2.5 per
cent next year.
"Councils do not believe it is possible to keep to this limit given the money that is being offered from the Executive," a senior council insider said.
Initial forecasts for council tax have already predicted an average rise of 4.6 per cent with some bills going up by as much as 7 per cent.
Ministers had hoped that the councils would scale down these estimates after negotiations with the Executive, but this has not happened and the local authorities are still preparing to go ahead with the inflation-busting rises...
During First Minister's questions yesterday, Mr McConnell made it clear that councils would have to take responsibility for any inflation-busting tax rises, and would not be supported by the Executive if they did so. Answering a question from the Scottish Socialists' Colin Fox, Mr McConnell said: "The reality is that, given the funding settlement agreed for local authorities next year, there is no need - unless local authorities decide to increase their expenditure - for local authorities to be increasing council tax by more than 2.5 per cent next year. That is a consistent position in my view backed by the facts and figures."
As the scare stories about big increases in council tax for next year continue, and as local authorities impose mounting pressure on MSPs, the Executive will inevitably climb down and produce some extra cash to moderate those increases. They will of course deny it, up until the moment when it happens. You read it first here.
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