Local Government, Housing and Planning Committee of the Scottish Parliament: Council tax inquiry

The Local Government, Housing and Planning Committee (the Committee) of the Scottish Parliament invited the CIOT and its LITRG to provide oral evidence in relation to its council tax inquiry. It also invited the bodies to make a written submission in advance of the committee appearance.

The Committee is considering possible reform of council tax, exploring themes such as barriers to change, pros and cons of a revaluation of domestic properties in Scotland and learning from other countries.

The response notes that there can be a perception among the general public that council tax is unfair. There are number of reasons for this – outdated valuations, the operation of the banding system, the use of property value as a measure of ability to pay council tax, the operation of discounts and exemptions and perceptions of value for money. The response explores each of these.

The response sets out our view that a prerequisite for future changes to council tax is a full revaluation of all properties in Scotland. This is because it is not possible to assess and address the regressive nature of council tax in a meaningful and fair way without first ensuring that the values according to which you are spreading the burden of tax are in fact correct. Once there has been a full revaluation, other reforms could be approached in the knowledge that the tax base is accurate and that reforms will affect the appropriate/intended properties.