Council tax queries: FOI release

Information requested

1. How is the council tax calculated for different property categories in Aberdeen and what criteria is it based on?

2. How are the council tax rates formed in different areas of the city (A, B, C)?

3. What expenses are covered by council tax in the city’s budget? (education, healthcare, infrastructure repairs, etc.)

4. How much money has been spent on each category of expenses (for example, education, building repairs, social services)?

5. How many individuals have received council tax relief (including those in special categories)? What are the criteria for receiving relief?

6. How many people have not paid the tax, and what is the amount of unpaid debt that has been written off in recent years?

7. What measures are being taken to reduce the level of tax non-payment?

8. What contracts have been signed with contractors for the use of funds from council tax (repairs, social services, etc.)? How much money has been spent on these contracts and who exactly received them?

9. How is transparency and competition ensured in the process of awarding contracts for works financed by council tax funds?

Response

The Scottish Government seeks to provide requested information whenever possible. In addition to requesting data under the FOISA, you have also made queries under FOISA which require some substantive response. I have set out the answers to your queries below.

1. How is the council tax calculated for different property categories in Aberdeen and what criteria is it based on?

The Council Tax applies to all properties that meet the definition of a “dwelling” as set out in the Local Government Finance Act 1992 and associated secondary legislation. Broadly speaking, this definition of dwelling includes properties which have domestic usage and excludes properties used for commercial purposes.

Council Tax is a local property tax which is levied on domestic properties in Scotland by individual local authorities. However, the framework of the Council Tax system applies nationally and is decided by the Scottish Government and Scottish Parliament. Each domestic property is allocated into one of eight different Council Tax valuation bands based on the amount which they might have reasonably been expected to realise in the open market if sold on 1 April 1991 given certain assumptions (for instance, that they are in a reasonable state of repair). This use of a fixed date allows the valuations of individual properties to be estimated relative to others in the local area on a consistent basis.

These valuations are used to allocate properties to one of eight valuation bands each of which is assigned a different liability. These eight valuation bands, labelled A to H, and their corresponding property valuation thresholds are as follows:

Council Tax Band	Valuation Threshold
A	Up to £27,000
B	Over £27,000 and up to £35,000
C	Over £35,000 and up to £45,000
D	Over £45,000 and up to £58,000
E	Over £58,000 and up to £80,000
F	Over £80,000 and up to £106,000
G	Over £106,000 and up to £212,000
H	Over £212,000

Each local authority has the responsibility for setting the Council Tax Band D rate for their area each year. Rates for other bands are calculated as a proportion of this Band D rate as determined by a multiplier set by the Scottish Parliament. In effect the Band D rate serves as the reference point from which the rate of each other band is calculated using the following multipliers.

Council Tax Band	Band Multiplier
A	0.67 (or 240/360)
B	0.78 (or 280/360)
C	0.89 (or 320/360)
D	1.00 (or 360/360)
E	1.31 (or 473/360)
F	1.63 (or 585/360)
G	1.96 (or 705/360)
H	2.45 (or 882/360)

For example, referring to the city of Aberdeen specifically, for 2025-26 Aberdeen City Council set the Band D rate in its area to be £1,636.27 and the liability for the remaining bands are listed on the Aberdeen City Council web site in a table at Council Tax bands | Aberdeen City Council. On an incidental note, you will notice that Water Charges are also listed in this table. Water Charges are collected on behalf of Scottish Water by local authorities along with Council Tax. However, but increases in Water Charges are decided jointly by the Scottish Ministers, Scottish Water and the Water Industry Commission for Scotland (WICS - the economic regulator for the water industry in Scotland).

2. How are the council tax rates formed in different areas of the city (A, B, C)?

Council Tax rates which apply in the city of Aberdeen are set by Aberdeen City Council each year using the framework described above. This framework is applied consistently to all liable properties irrespective of their location within the Aberdeen City Council area or indeed any local authority area.

3. What expenses are covered by council tax in the city’s budget? (education, healthcare, infrastructure repairs, etc.)

Budget decisions are a matter for individual local authorities. The Scottish Government does not have the information you have asked for. Therefore, this is a formal notice under section 17(1) of FOISA that the Scottish Government does not hold the information you have requested.

However, this information is available in the public domain on the Aberdeen City Council web site at How your Council Tax is spent | Aberdeen City Council. Any additional breakdown on Council Tax disbursement may be available on request from Aberdeen City Council.

4. How much money has been spent on each category of expenses (for example, education, building repairs, social services)?

Local authorities are independent corporate bodies with their own powers and responsibilities and are entirely separate from the Scottish Government. As long as they act lawfully, it is up to each local authority how it manages its day-to-day business and decision making processes.

The Scottish Government does not have the information you have asked for. Therefore, this is a formal notice under section 17(1) of FOISA that the Scottish Government does not hold the information you have requested.

For further context, the Scottish Government’s policy towards local authorities’ spending is to allow local authorities the financial freedom to operate independently. As such, the vast majority of funding is provided by means of a block grant. It is then the responsibility of individual local authorities to manage their own budgets and to allocate the total financial resources available to them on the basis of local needs and priorities, having first fulfilled their statutory obligations and the jointly agreed set of national and local priorities.

The Scottish Local Government Financial Statistics is an annual publication that provides a comprehensive overview of financial activity of Scottish local authorities based on authorities audited accounts. The publication covers: local authority income; revenue expenditure and income, capital expenditure and income; reserves; debt; local taxation; and local authority pensions. I have provided a link below for your interest -https://www.gov.scot/collections/local-government-finance-statistics/#scottishlocalgovernmentfinancialstatistics

5. How many individuals have received council tax relief (including those in special categories)? What are the criteria for receiving relief?

In the terms of your request, you do not specify exactly what you mean by “council tax relief.” Typically, when individuals refer to Council Tax relief, they are referring to the national Council Tax Reduction (CTR) scheme - which is the means tested relief to the household Council Tax liabilities of occupied domestic properties.

The CTR scheme reduces a household’s Council Tax liability based on an assessment of household income, capital, and other circumstances such as:

• whether there are children living in a household
• whether anyone living in a household has a disability
• entitlement to certain state benefits

The number of households in receipt of CTR for the Council Tax years 2022-2023 and 2023-24 currently available on the Scottish Government web as follows:

Council Tax Reduction in Scotland: 2022-2023 – Supplementary Tables
Council Tax Reduction in Scotland: 2023-2024 - Supplementary Tables

Figures for the full period of 2024-2025 are not yet available. However, monthly figures to February 2025 are available on the Scottish Government web site at:

Council Tax Reduction: local authority tables and charts - April 2013 to February 2025

In addition to means tested relief in Council Tax liability through the CTR scheme liability can also reduced through the Scottish Government’s implementation of Council Tax discounts and exemptions.

The principle means by which household Council Tax liabilities are discounted is through the Single Person Discount which can apply to the Council Tax payments of properties which have a single adult resident having their sole or main residence there. Qualifying households receive a 25% (or in some cases 50%) discount in Council Tax liability. Further, certain classes of adult resident, such as students, care leavers and those with a significant cognitive impairment can be disregarded for the purposes of the Single Person Discount meaning that some households with more than one adult resident can retain the discount where it would otherwise have been lost. Additionally, where all adult residents are disregarded for Council Tax discount purposes a discount of 50% can apply.

Households with a disabled resident may also qualify for a reduction in the Council Tax valuation band of their home. This entitlement can apply to households which have an additional room which serves the needs of a disabled person or extra floor space to accommodate the use of a wheelchair. Eligible households pay the rate for the Council Tax band below the one allocated to their home while homes already in band A pay five-ninths of the band A rate.

Domestic properties may also qualify for Council Tax exemption which removes liability entirely. Council Tax exemptions can apply to both occupied and unoccupied properties under specific conditions.

Occupied properties may be exempt from Council Tax where they are occupied by one or more different types of resident and no-one else. This includes full-time students, people under the age of 18, school leavers and those having a significant cognitive impairment (also known as a severe mental impairment). If all residents of a property fall into these categories, the property itself may be exempt from Council Tax.

Unoccupied properties can be exempt from Council Tax if they are prohibited from occupation by law. Properties that are undergoing major repairs or structural alterations may also be exempt for a limited period. However, exemptions for unoccupied properties are generally more restrictive and often require specific conditions to be met.

Attached to this response is a Microsoft Excel spreadsheet of the following for each of years 2022-2023, 2023-2024 and 2024-25.

• The number of dwellings entitled to a 25% single person discount,
• The number of dwellings entitled to a 50% discount due to being occupied entirely by disregarded adults;
• The number of chargeable dwellings that are subject to a disabled reduction in Council Tax banding;
• The number of dwellings with unoccupied exemptions;
• The number of dwellings with other exemptions.

Some of the information you have requested in this part is available already available from the Scottish Government web site as already set out. Under section 25(1) of FOISA, we do not have to give you information which is already reasonably accessible to you. If, however, you do not have internet access to obtain this information from the web resources referenced above, then please contact me and I will send you a paper copy.

6. How many people have not paid the tax, and what is the amount of unpaid debt that has been written off in recent years?

The Scottish Government only collects data on the amount of uncollected Council Tax. While our aim is to provide information whenever possible, in this instance the Scottish Government does not have the information you have requested i.e. the numbers of households which have not met their Council Tax payment obligations.

Further, only local authorities have the power to write off amounts of outstanding Council Tax and the Scottish Government does not hold information on this. You may wish to contact Aberdeen City Council regarding provision of this data for the city of Aberdeen.

Therefore, this is a formal notice under section 17(1) of FOISA that the Scottish Government does not have the information you have requested.

However, I have provided you with a Microsoft Excel spreadsheet containing the information the Scottish Government holds on Council Tax billed and revenue received for each of the years 2022-2023 and 2023-2024 (meaningful data for 2024/25 is not yet available).

7. What measures are being taken to reduce the level of tax non-payment?

The collection and administration of Council Tax in Scotland is the responsibility of individual local authorities, and collection rates are already very high, with 96% of charges collected successfully each year. To further reduce the level of tax non-payment, several measures are being implemented.

Scottish Ministers are working closely with COSLA (the Convention of Scottish Local Authorities) to encourage the adoption of best practice in debt collection and advice. This includes promoting guidance produced by the Improvement Service and Stepchange’s “Collaborative Council Tax Collection” guide, which set out effective approaches for supporting households and improving collection rates. Local authorities are encouraged to use these best practices but retain the flexibility to agree on mutually suitable payment arrangements with households, rather than being required to use any specific collection method.

For 2025-26, people struggling with Council Tax payments across Scotland will benefit from enhanced advice and support through the expansion of a Citizens Advice Scotland project. This initiative, backed by an additional £2.2 million in Scottish Government funding, provides tailored support to affected households and works with local authorities to promote good practice in Council Tax debt collection.

In addition, the Joint Working Group on Council Tax Reform has identified the need for stronger data sharing on debt recovery. Improved data sharing will help councils identify those who may benefit from Council Tax Reduction and enhance their ability to recover debts.

Overall, these measures are designed to maintain high collection rates, support those in arrears, and ensure that local authorities have the resources and information they need to further reduce the level of tax non-payment.

8. What contracts have been signed with contractors for the use of funds from council tax (repairs, social services, etc.)? How much money has been spent on these contracts and who exactly received them?

Individual contracts between local authorities and third parties are a matter for individual local authorities to manage. While our aim is to provide information whenever possible, in this instance the Scottish Government does not have this information. Therefore, this is a formal notice under section 17(1) of FOISA that the Scottish Government does not hold the information you have requested.

You may wish to contact Aberdeen City Council directly regarding their procurement processes.

9. How is transparency and competition ensured in the process of awarding contracts for works financed by council tax funds?

As above, this is a formal notice under section 17(1) of FOISA that the Scottish Government does not hold the information you have requested.

You may wish to contact Aberdeen City Council regarding their procurement processes.

About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at https://www.gov.scot/foi-responses.

FOI 202500458773 - Information released - Billed and Received

File type

Excel document

File size

14.2 kB

FOI 202500458773 - Information released - Reductions Discounts and Exemptions

File type

Excel document

File size

18.5 kB