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MSPs to vote on council tax increase for top bands MSPs vote to raise top four council tax bands
(about 4 hours later)
MSPs are to vote on increasing the top four bands of council tax in Scotland. MSPs have voted to increase the top four bands of council tax despite the final order criticising the government.
Members will consider the issue via a parliamentary bureau motion at the end of the day's business at Holyrood, after the increase was backed by the local government committee. The changes will see council tax bands E-H rise from April 2017.
The government wants some households to pay more to raise money for education. SNP members were forced to vote for a motion noting that they had failed to make radical enough changes, after opposition parties amended the order.
But opposition parties have questioned the Scottish government's approach, with some calling for more radical reforms to local taxation. Finance Secretary Derek Mackay said the changes were "the first step in a journey of reform", but other parties were critical of the SNP's approach.
The proposals would see increases in bands E to H, with the average band E household paying £2 per week more and those in the highest band about £10 a week more. The council tax freeze is to end in 2017, meaning all properties could potentially see their bill rise. But the order passed at Holyrood means the top four bands will rise in proportion to the others.
Parliament has to pass a piece of secondary legislation to change the bands, and the order will go before MSPs as a parliamentary bureau motion after Finance Secretary Derek Mackay persuaded the local government committee to support the move. The average band E household will pay £2 per week more than at present, and those in the highest band about £10 a week more
Parliament had to pass a piece of secondary legislation in order to raise the bands, and this went before MSPs as a parliamentary bureau motion after Finance Secretary Derek Mackay persuaded the local government committee to support the move.
Green member Andy Wightman put forward an amendment accepting the changes, but noting that parliament "regrets" that the plans "undermine the principle of local accountability and autonomy and fail to address a number of issues".
This was accepted by MSPs, with all opposition members supporting it and SNP members opposed. This meant government MSPs had to vote in favour of a motion critical of their approach in order to get the order passed.
The average annual increase in council tax as a result of the band adjustments would be;The average annual increase in council tax as a result of the band adjustments would be;
Green MSP Andy Wightman has put forward an amendment accepting the changes, but noting that parliament "regrets" that the plans "undermine the principle of local accountability and autonomy and fail to address a number of issues".
Derek Mackay has put forward an amendment to this amendment accepting some parts, but removing the "regret".
Opposition members have repeatedly called for a different approach from the Scottish government, with many pointing to the findings of the Commission on Local Tax Reform.Opposition members have repeatedly called for a different approach from the Scottish government, with many pointing to the findings of the Commission on Local Tax Reform.
The minority SNP administration only escaped a defeat over local taxation in the chamber in September after Labour leader Kezia Dugdale's vote failed to register. Mr Wightman said the government plans were a "tepid re-heat of a discredited system" and were "fatally flawed", but said the Greens would support the order no matter what amendments were made.
'I will engage with others' Finance Secretary Derek Mackay replied that the changes were just the "first steps on a journey of reform", hitting out at "opportunistic opposition" over the vote.
Mr Mackay told the BBC's Good Morning Scotland programme said the intention was to raise £100m more money for local government to spend "that they would not normally have". He pointed out that the plans would raise £100m to be spent on education, and said the SNP would not let party politics get in the way of this.
He also made clear that he was willing to engage with opposition parties about wider changes to local taxation. But Tory member Graham Simpson said this was "uncharted territory", with the government aiming to raise money at a council level and then spend it nationally on education. He called this an "attack on local democracy".
Mr Mackay said: "This is not the end of the story. I have said previously, and I will say again, I will engage with political parties - we are a minority government - to take forward further ideas around progressive, local taxation." Labour's Alex Rowley said the government had not been honest about their tax plans, but said his party would support the rate rises as they were better than the existing system.
The Scottish Conservatives say that if council tax increases, the money raised should be spent by councils. Local government spokesman Graham Simpson said the SNP was "not only hitting hard working families with higher taxes but also ensuring that local people do not feel any direct benefit form the money raised." And Lib Dem leader Willie Rennie said his party would oppose the order as it would only "embed" the council tax, calling for "true reform".
Scottish Labour meanwhile said the government should "think again". Deputy leader Alex Rowley said: "The nationalists' proposals have not been bold enough, ambitious enough or frankly good enough." At decision time, Mr Wightman's amendment was passed by 65 votes to 63 after an amendment put forward by Mr Mackay was defeated by the same margin.
'Bury the council tax' The final motion then passed by 92 votes to 35.
The Scottish Greens also back replacing the council tax, and are in favour of a revaluation of properties - the current system is based on house values dating back to 1991. What happened with the vote?
And the Lib Dems said that "this week should be the week to bury the council tax, not raise it". MSP Mike Rumbles said the vote was "hugely significant", adding that "local taxation should be for local services".
Will council tax bands go up or not?
Analysis by BBC Scotland political reporter Philip SimAnalysis by BBC Scotland political reporter Philip Sim
It's all getting a bit complicated at Holyrood - an attempted amendment to an amendment to a PBM approving an SSI. Clear as mud. The key news here is that the order has passed; the top four council tax bands are going up.
So what is actually going to happen with this vote? Are these council tax bands going up or not? But behind that, this has been an embarrassing episode for the government, with opposition parties once again ganging up on them.
The complication stems from Andy Wightman's amendment, which accepts the rate rises but includes a note of "regret" at the government's approach. With Andy Wightman's critical amendment passed, SNP members were faced with the prospect of having to vote for a motion noting regrets at their own approach.
This amendment might well pass, given opposition parties ganged up on the (minority) government over council tax as recently as September. But they didn't have much choice, in the end.
If it does, then the SNP might not want to vote for the order. They could well end up abstaining - which would make the final vote a straight fight between the opposition parties. The government knew if they abstained on the final vote, the Tories and Lib Dems - an odd pairing who oppose the measures on the basis that they "go too far" and don't go far enough, respectively - could have killed the order.
Ms Sturgeon was specifically pressed on this by Patrick Harvie in the chamber at FMQs - and she did not commit to backing a Green-amended motion, only promoting Mr Mackay's amendment. Would "the people at home" have understood (or cared) why the government had failed to vote for its own order? Possibly not.
The Tories and Lib Dems are both broadly opposed to the changes - so they could vote against the amended motion, outnumbering Labour and the Greens. The order would be dead - for now. So, in the words of Patrick Harvie, they had to "swallow their pride".
This is just one scenario. But it's clearly a worry for the government, evidenced by Derek Mackay's bid to amend the amendment - and Ms Sturgeon's repeated warnings to other parties not to "side with the Tories" at decision time. Yes, the wording of the motion slightly embarrassing for the SNP. But in the long run, failing to pass the measures would have been far worse.