The Scottish Government has launched a consultation on council tax reform, proposing major changes to reshape household bills nationwide.
Under the draft plans, Scotland’s most expensive homes could face increases of up to £3,000 each year. Meanwhile, lower-value homes could see annual savings of several hundred pounds. The consultation marks the first major reform effort since a similar pledge in 2007.
Finance Secretary Shona Robison said any reform must follow public debate and be supported by strong evidence. She stressed that the government is not endorsing one model but wants to build broad national agreement first.
The proposals, developed with Cosla, outline two structures — a 12-band or a 14-band system. Both would replace the current eight-band model, which relies on outdated 1991 property values.
Under the 14-band plan, homes would range from Band A1 to Band K. Lower bands could save between £130 and £260 annually, depending on property value. In contrast, the most expensive homes could pay about £2,750 more each year.
Alternatively, the 12-band system would bring smaller savings for lower bands. However, it could still raise taxes for top-tier homes by roughly £1,600. Officials say both models aim to deliver a fairer and more gradual increase across all property types.
The consultation also considers whether revaluation should occur nationally or locally. A localized approach could better reflect housing differences between rural and urban regions. It would also give councils more flexibility in managing local tax rates.
Cosla’s resources spokesperson, Katie Hagmann, called the review long overdue. She urged political leaders to act quickly to modernize the outdated system.
However, Scottish Conservative finance spokesperson Craig Hoy issued a sharp warning. He said the plan could bring “another round of jaw-dropping tax hikes” during a cost-of-living crisis.
Despite criticism, Robison reaffirmed that change will take time. She noted that reforms will require cross-party support and may take several years to deliver.
For now, the consultation gives Scots a chance to influence how fairness and affordability will define local taxation in the future.
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