East Ayrshire council tax freeze plan for households

East Ayrshire Council's full council will meet on Thursday, February 29 to discuss recommendation set to them by cabinet on Wednesday, February 28.

According to a report being put forward looking at the upcoming budget, all council tax bands would be frozen.

The report adds that Scottish Government funding of an initial £144million has been set aside to enable all local authorities to freeze council tax levels.

READ MORE: East Ayrshire councillors split over council tax increase plans

This freeze has been assessed by the Scottish Government as equivalent to a five per cent increase, to be distributed based on assumed Council Tax revenue collectable.

Council Tax modelling suggests that a 1% increase would equate to £0.690m gross income in 2024/25 with a 5% funded freeze being equivalent to £3.450m.

Last week, Argyll and Bute Council decided to put up council tax by 10 per cent, going against the Scottish Government’s wishes.

Deputy First Minister Shona Robison has said funding arrangements for local councils are not about punishing those who do not freeze the council tax.

Deputy First Minister Shona Robison (Image: PA)

Ms Robison said £62.7million more than initially planned would be made available to councils.

But she said last week that access to a share of the funding would be contingent on councils agreeing to implement the council tax freeze.

Ms Robison said the Scottish Government was facing “difficult choices” on spending.

Adding: “In addition to the £14billion settlement for councils I set out in December, a further £62.7million will be made available to them in 2024-25 subject to improved funding being confirmed through the spring budget.

“This extra funding is conditional on councils agreeing to the council tax freeze, which remains a priority for the Scottish Government and would benefit council taxpayers across Scotland during the cost-of-living crisis.”