Millions to be hit by council tax INCREASE as services axed - will YOUR council tax go up?
MILLIONS of Scots will be hit by council tax rises while services are still cut. Bills will rise by an average of £34.87 from next month after all local authorities imposed the maximum 3 percent allowed by SNP ministers.
Clackmannanshire today became the last to set its budget for the year ahead.
It is the first time in a decade that all 32 local authorities have increased the levy.
The hikes will raise an estimated £77 million for councils but leaders have warned jobs and services face the axe to balance the books.
They argue even with the maximum rise there is not enough cash to meet staff pay rises and a squeeze on budgets.
Meanwhile, business leaders issued renewed warnings over the impact on the economy following the Scottish Government's salary raids on middle and higher earners.
Councils will do everything they can to manage pressures through savings but with income generation restricted by the Scottish Government there is often little scope for manoeuvre
The SNP's Budget deal with the Greens means 1.1 million Scots will pay higher income tax than those earning the same elsewhere in the UK.
The latest rise will mean a family in a typical Band D property will pay about £1,200.
Those in more expensive homes will seen an increase of £92, taking the average annual bill to more than £3,000.
However, budgets for bin collections, arts funding, grants to charities and community wardens in some areas will be affected as bosses try to plug funding gaps.
Other councils will hike fees and charges for services.
The Scottish Government's pay policy states every public sector worker earning up to £36,500 should get a 3 percent rise from April, or 2 percent for those earning more.
But Cosla argues councils have not been offered enough funding to cover the rises.
The council umbrella group's resource spokeswoman, Gail Macgregor, said there was "ongoing significant pressure" from pay and demand for services.
She added: "As councils set their budget we are seeing the reality of this and difficult choices need to be made.
"Councils will do everything they can to manage pressures through savings but with income generation restricted by the Scottish Government there is often little scope for manoeuvre.
Hammond announces 100% premium on council tax on empty housing
"Councils want to support communities and protect the vulnerable, but at budget setting time the harsh reality of years of lack of proper investment in local government starts to bite."
Last year, the SNP ended the council tax freeze and allowed annual rises of up to 3 per cent. But some, including South Lanarkshire, Renfrewshire and Inverclyde, refused to do so.
The highest Band D rate this year is in Glasgow at £1,286.47 and the lowest is in the Western Isles at £1,086.36.
Scottish Tory local government spokesman Alexander Stewart MSP said: "Across Scotland hard-working families are now going to pay more council tax.
"Yet thanks to the SNP’s decision to slash funding to local authorities, vital public services will only get worse.
"It really does prove once and for all that under the SNP you pay more, but get less."
Scottish Labour's James Kelly accused Finance Secretary Derek Mackay of "pulling a con-trick on cuts".
Mr Kelly said: "He has hammered council budgets - and then tells councils to raise taxes to cover the cuts.
"The reality, however, is that these council tax rises would be a drop in the ocean compared to the level of cuts councils are facing."
The Scottish Retail Consortium (SRC) warned the council tax rises would add to the strain on household finances.
"Where's the money going?!" Ferrari slates council tax increases
SRC director David Lonsdale said: "Consumer spending, a mainstay of Scotland’s economy, faces headwinds in the months ahead as households contend with increases in council tax, income tax and higher employee pension contributions.
"Family budgets are already under strain and do not stretch as far as they used to with inflation continuing to outstrip growth in wages."
A Scottish Government spokesman said: "The local government finance settlement this coming year is £10.7 billion and councils will raise an additional £77 million by increasing council tax by 3 percent, following a nine year freeze.
"Budget decisions, including council tax and staff pay agreements, are for individual authorities but their funding will increase next year by almost £342 million.
"Our income tax proposals will see 70 percent of Scottish taxpayers pay less income tax next year for an unchanged income, giving them more disposable income."