Council tax rise lowest so far - just as elections draw near

Liberal Democrat-led Aberdeen set the highest Band D rate in Scotland at 1,230, a rise of just under 3 per cent on last year.

The Labour-controlled Stirling was not far behind, setting a Band D level of 1,223. Glasgow's level is 1,213.

The sharpest rise for the financial year 2007-08 - 3.9 per cent - was delivered by the Tory-controlled South Ayrshire. Two other authorities - the SNP-led Angus and Labour-controlled Midlothian - followed Glasgow's example with a zero increase.

A total of 12 authorities came in with a rise of less than 2 per cent, with Edinburgh's 1.5 per cent at the lower end of the scale. The Western Isles council set the lowest Band D level at 1,024.

With an election looming for councils and the Scottish Parliament in May, there was huge pressure on councillors to keep their increases down.

And last night, with four councils still to set their council taxes, the umbrella body, COSLA, claimed the 1.9 per cent rise in the average Band D level across Scotland to 1,151 was a triumph for its campaign to wring more cash out of the Executive.

John Pentland, COSLA's finance spokesman, said: "Make no mistake, this is a major win for COSLA. We have delivered a real and meaningful result for Scotland's council taxpayers that they will feel in terms of the pound in their pocket.

"The fact that councils have managed to come in with the lowest-ever council tax rise comes about as a direct result of the lobbying campaign undertaken by COSLA to convince the finance minister that the finance settlement for local government was not good enough."

He added that the average council tax rise in 2006-07 was the lowest since the creation of the Scottish Parliament.

Tom McCabe, the minister for finance and public service reform, welcomed the low rises, but he warned authorities they would have to keep council tax down after the elections.

Mr McCabe said councils, which will have more than 17 billion to spend next year, had enjoyed "unprecedented rises in funding since devolution", with the grant to local government up almost 58 per cent since 1999.

He added: "I have repeatedly urged Scottish local authorities to use these resources to exercise downward pressure on their council tax levels. I am delighted councils have risen to the challenge and responded.

"There is no such thing as a popular tax, but councils are exercising downward pressure on rises - and I expect that to continue for each of the next four years."

John Swinney, the SNP's finance spokesman, said: "Council tax has now increased by well over 60 per cent under Labour. Once again the councils with the largest bills are run by Labour, the Lib Dems and the Tories.

"Those that will be hardest hit by today's rises will be pensioners and those on low incomes, and that's why we need to scrap Labour's unfair tax and replace it with a fair system based on the ability to pay."

He added that "as an interim measure", in the two years it would take an SNP government to introduce local income tax, it would freeze council tax at the levels set yesterday.

Rise in water bills to be below inflation rate

HOUSEHOLD bills for water in Scotland will go up by less than the rate of inflation, it was revealed yesterday.

Scottish Water said water and sewerage bills would increase by 3.17 per cent, taking the average household bill to 296.57.

Though its charges are sent out with council tax demands, the publicly-owned utility is a separate organisation. Its prices are set by the Water Industry Commission for Scotland (WIC).

The latest WIC-set tariff means Scottish Water household customers will, on average, have to pay year-on-year increases of 0.5 per cent less than inflation in the next three years. Bills to Scottish businesses will rise by 1.5 per cent less than the rate of inflation each year.

The announcement comes as privatised water companies in England are expected to impose above inflation increases in the next few weeks.

Jon Hargreaves, Scottish Water's chief executive, said progress had been made in "starting the mammoth task of matching the efficiencies and service of the privatised companies in the south".

He added: "Scottish Water is now on a sound financial footing, our customers are getting better service and lower prices and we are determined to continue the journey we began in 2002.

"We were at the bottom of the league compared to England and Wales. Today, we are in the middle of the pack with our sights set on matching the best."

Rob Gibson, the SNP's spokesman on water, welcomed the below-inflation rise. He said nationalist pressure on pricing policy had ensured moderate rises.