The findings from this consultation, together with the wider programme of engagement, will help inform further consideration in the Scottish Parliament.
Currently, 62.7% of all domestic properties in West Lothian are in the lower bands A to C which is a higher proportion than the Scottish average and council tax charges in West Lothian are lower than the Scottish average
West Lothian Council is providing a response to the consultation and would encourage residents to take part via https://www.gov.scot/publications/consultation-future-council-tax-scotland/
What is Council Tax?
Council tax is a local tax on domestic properties that was introduced in 1993. It helps to fund a wide range of council services but it does not pay for all council services. Currently only 19% of the council's budget comes from Council Tax
How does it work?
- Under the current system, all domestic properties are placed into one of eight council tax valuation bands, from Band A to Band H. Band A is the lowest valuation band and Band H is the highest. These bands are based on what the property would have been worth on 1 April 1991
- The valuation of each property into the bands is the sole responsibility of the local Assessor, who is independent of the council. The Assessor maintains the valuation list for each council area.
- To date there has been no revaluation of council tax bands in Scotland so the system continues to be based on values that were determined nearly 35 years ago. Over this period of time the property market has grown significantly resulting in bands not reflecting current market values.
- On average, the estimated value of domestic properties in Scotland has increased by 357% since 1993. However, the average increase in West Lothian is estimated to be 430%, the 7th highest average increase of all local authority areas in Scotland.
- The Council Tax Reduction Scheme (CTRS) supports lower-income households with their council tax and those in receipt of full CTRS do not pay any council tax. Currently, around 15,000 households are supported by CTRS which is partly funded by West Lothian Council.
The Scottish Government is consulting on a number of key areas:
• Updating property values: All domestic properties would be revalued to reflect current market values
• Approaches to revaluation: A number of different revaluation models are being consulted on including more progressive 12 band and 14 band systems. These would introduce new council tax bands at the top and bottom of the scale to ensure the system is more progressive and proportionate, and to smooth the differences between tax rates
- Support for households: This includes options to help households adjust to any changes such as a transitional scheme and deferral options as well as changes to the CTRS to support lower-income households
The West Lothian Council response to the consultation?
West Lothian Council officers are proposing that the council's response to the consultation:
- Supports a revaluation to reflect current market values. The revaluation process would be carried out by local Assessors, who are independent of the council
- A 14-band system is suggested as the preferred model to allow for a more progressive system supported by a five-year cycle of revaluation to keep property values up to date
Under each of the revaluation models there would be a significant movement of properties between bands. Under the two progressive models (12 band and 14 band) approximately a third of properties in West Lothian would be in a lower band with just over half in a higher band
• Supports a transitional scheme which caps increases as a result of revaluation to 10% or £300 per year and changes to the CTRS to support lower-income households
