Joint Working Group on Sources of Local Government and Council Tax Reform: 4 March 2025

Attendees and apologies

• Cabinet Secretary for Finance and Local Government (Chair)
• Minister for Public Finance
• Cllr Shona Morrison, COSLA (Convention of Scottish Local Authorities) President
• Cllr Steven Heddle, COSLA Vice-President
• Cllr Katie Hagmann, COSLA Resources Spokesperson
• Robert Emmott, Local Authority Director of Finance Group
• Les Robertson, IRRV Representative

Also in attendance:

• David Storrie – Scottish Government
• James Messis – Scottish Government
• Mirren Kelly - COSLA
• Gareth Dixon – COSLA

Items and actions

• The Cabinet Secretary for Finance and Local Government (Chair) welcomed members to the 11th meeting of the Joint Working Group (JWG). She noted the recent public announcement of the engagement programme and highlighted that both she and Cllr Hagmann had provided evidence earlier in the day to the Local Government, Housing and Planning Committee’s Council Tax Inquiry.

 

• The Chair emphasised that the key agenda item for this meeting was the content of engagement, with the aim of securing agreement on key aspects, subject to internal processes and COSLA Leaders’ sign-off. Members agreed the minutes from the previous meeting.

 

• The group reviewed the Engagement Content Paper, which had been co-produced by Scottish Government officials and COSLA officers.

 

• The Chair noted that previous discussions had covered:
  • Updating the property market reference point (revaluation).
  • Property tax reform options.
  • Revaluation over a longer timeframe (a slow burn approach).
  • Transitional arrangements for incremental changes to Council Tax bills.

 

• The chair acknowledged that the paper had been structured into three sections:
  • Tax Base Changes
  • Soft Landing Considerations
  • Additional Empowerment Considerations

 

• James Messis provided a summary of the paper. A discussed followed on the contents of the paper, with particular attention given to issues of valuation, and a national approach or local approach. The group agreed that regardless of approach, it was important to build-in safeguards.

 

• It was noted that there were questions of valuation nature, that required Scottish Assessors input. The group discussed that representative of the Scottish Assessors Association executive team could be invited to future meetings. The group agreed to extend to them, membership in the group.

 

• The group then sought agreement on key aspects of the JWG paper:
  • Tax Base Changes
  • Soft Landing Considerations
  • Additional Empowerment Considerations

 

• The group agreed the exploration in a data analysis exercise for each of the above.

 

• The group agreed that a slow-burn revaluation would not be practically desirable. They noted it would create huge unfairness with a two-tiered system. The group discussed the impact on Council Budgets, the point of sale being a likely ineffectual means of transition – given after 5 years only 20% or so would be on new valuation. They agreed not to explore this option further.

 

• The group discussed issues in relation to a local approach to revaluation, or a national approach. They agreed an action to explore this further, noting the need for Scottish Assessors to provide input.

 

• The group discussed the pros and cons of the various ‘Soft-Landing’ options and agreed that these should go into the engagement activity. They agreed that they should have more discussion before agreeing the content of engagement.

 

• The Chair highlighted the Twin-Tracks Engagement Approach, under which:
  • COSLA would engage with political party leaders to build cross-party support for Council Tax reform.
  • Scottish Ministers would engage with COSLA Leaders to promote the engagement programme.
  • Both groups would report back on progress at future JWG meetings.

 

• The group noted the Council Tax premium on second and long-term empty homes, in light of a potentially opposition amendment to the Housing (Scotland) Bill, which would enable Scottish Ministers’ to increase Council Tax premiums.

 

• The group discussed some anomalies with the application of the premium including those in various service roles occupying a second premises. COSLA agreed to investigate these issues with Directors of Finance and Leaders ahead of the next JWG meeting.

 

• The Chair thanked all members for their contributions and closed the meeting. The next JWG meeting date will be confirmed in due course.