The Future of Council Tax in Scotland - Consultation Response
Renfrewshire Council · 5 February 2026
Back to Finance, Resources and Customer Services Policy Board — 5 February 2026 and its agenda
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PUBLIC _________________________________________________________________ To: Finance, Resources and Customer Services Policy Board On: 05 February 2026 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: The Future of Council Tax in Scotland - Consultation Response 1. Summary 1.1 The Scottish Government and COSLA launched a consultation on The Future of Council Tax in Scotland on 27 October 2025, closing on 30 January 2026. The consultation seeks views on the preferred option for reform, views on whether a national or local model should be applied, the frequency of revaluations, the use of transitional relief, a deferral scheme, and the Council Tax Reduction Scheme. 1.2 Officers have prepared a response attached as Appendix 1, this has been submitted in line with the deadline mentioned above with the stipulation that it is subject to final approval. 1.3 Links to published papers useful for reference are detailed below: • Consultation: The Future of Council Tax in Scotland (Scottish Government) https://www.gov.scot/binaries/content/documents/govscot/publications/consu ltation-paper/2025/10/consultation-future-council-tax- scotland/documents/consultation-future-council-tax-scotland/consultation- future-council-tax-scotland/govscot%3Adocument/consultation-future- council-tax-scotland.pdf
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PUBLIC • Revaluation and reform of council tax in Scotland: design considerations and potential impact. (Research paper produced by Institute of Fiscal Studies (IFS) on behalf of Scottish Government) https://www.gov.scot/binaries/content/documents/govscot/publications/r esearch-and-analysis/2025/10/revaluation-reform-council-tax-scotland- design-considerations-potential-impacts/documents/revaluation-reform- council-tax-scotland-design-considerations-potential- impacts/revaluation-reform-council-tax-scotland-design-considerations- potential-impacts/govscot%3Adocument/revaluation-reform-council- tax-scotland-design-considerations-potential-impacts.pdf _______________________________________________________________ 2. Recommendations 2.1 It is recommended that the Board: • Agree to homologate the consultation response (attached as Appendix 1) and agree the Director of Finance & Resources will confirm final approval to the Scottish Government and COSLA. _______________________________________________________________ 3. Background 3.1 Council Tax is a local tax set by each individual council which, along with the grant councils receive from the Scottish Government, helps pay for the services councils provide. For individual properties, Council Tax is determined by eight bands based on the value of a property, with Band A being the lowest and Band H being the highest. 3.2 The current eight-banded Council Tax bands system is based on valuations from more than 30 years ago (1991 values). As property values and local circumstances have changed, there is growing concern that the current system and valuation methodology is not representative of an ability to pay. 3.3 The main areas which the consultation explores and seeks views on are: o National versus localised banding and valuation. o Options for revaluation including keeping the status quo, adopting a differentiated system (smaller increases in tax between more bands) or progressive (where tax rates decrease for lower value properties and increase more significantly for higher value properties). o Use of Transitional Relief, designed to offset the impact of any increase in bills through a gradual progression.
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PUBLIC o Use of a Deferral Scheme which would allow some households to delay paying the extra council tax they owe as a result of the changes. o Extending Council Tax Reduction eligibility to include a wider group of low- income households. 3.4 The analysis presented in the Institute of Fiscal Studies paper predicted that with a 12-band progressive scheme, the majority of properties in Renfrewshire would pay a less or similar proportion in relation to the current band ‘D’ charge. 3.5 The response presented supports revaluation and a change to the existing structure. It advocates keeping banding and valuation at a national level, due to the potential complexity of hundreds of bands across Scotland. A more progressive system of 12 bands is supported, with protection provided through transitional relief and a wider CTR scheme which could remove the necessity for a potentially complex deferral scheme. 3.6 Commentary has been added with regards to potential impacts on protected groups and specific concerns have been noted in relation to: o the absence of any consideration of Water and Sewerage charges, o funding of an expanded CTR/transitional relief scheme o additional administration costs depending on the complexity of any new scheme 3.7 Overall the Council’s response supports the modernisation of the Council Tax system to make it less regressive and fairer.
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PUBLIC ___________________________________________________________________ Implications of the Report 1. Financial - None – consultation response only no policy changes 2. HR & Organisational Development – None. 3. Community/Council Planning – None consultation response only no policy changes 4. Legal – None in relation to responding to the consultation 5. Property/Assets – None. 6. Information Technology – None at this stage 7. Equality & Human Rights – None at this stage. No changes to existing policy Question 15 outlines potential impacts of changes on protected groups. 8. Health & Safety – None. 9. Procurement – None. 10. Risk – None. 11. Privacy Impact – None. 12. Climate Risk – None. 13. Children’s Rights – None – consultation response only 14. Cosla Policy Position – COSLA supports the reform of council tax to be more progressive. _________________________________________________________ Author: Emma Shields, Interim Head of Business Services, Risk and Safety
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PUBLIC Consultation: The Future of Council Tax in Scotland Respondent Information Form Please Note this form must be completed and returned with your response. To find out how we handle your personal data, please see our privacy policy - Privacy - gov.scot Are you responding as an individual or an organisation? Individual Organisation Full name or organisation’s name Phone number Address Postcode Email Address The Scottish Government would like your permission to publish your consultation response. Please indicate your publishing preference: Publish response with name Publish response only (without name) Do not publish response We will share your response internally with other Scottish Government policy teams who may be addressing the issues you discuss. They may wish to contact you again in the future, but we require your permission to do so. Are you content for Scottish Government to contact you again in relation to this consultation exercise? Yes No Renfrewshire Council 0141 4870874 PA1 1JB Cotton Street Paisley Emma.shields@renfrewshire.gov.uk Information for organisations: The option 'Publish response only (without name)’ is available for individual respondents only. If this option is selected, the organisation name will still be published. If you choose the option 'Do not publish response', your organisation name may still be listed as having responded to the consultation in, for example, the analysis report.
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PUBLIC About You Questions 1. About you Question 1 [For individual respondents] Please tell us which local authority area(s) you live in Local Authority Area(s): [For organisational respondents] Please tell us which local authority area(s) your organisation operates in Local Authority Area(s): Renfrewshire 2. About you Question 2 If you pay council tax, please indicate which council tax band(s) apply to the property (or properties) for which you pay council tax: Band A Band B Band C Band D Band E Band F Band G Band H I don’t pay council tax I don’t know
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PUBLIC Questions for Consultation 1. Do you think the current council tax system in Scotland needs to be reformed? Yes ☐ No ☐ Don’t know 2. Do you think property values used to calculate council tax should be updated to reflect current market values, instead of using 1991 values (i.e. should there be a revaluation of every Property in Scotland)? Yes ☐ No ☐ Don’t know 3. How often do you think property values should be reviewed and updated for council tax purposes? ☐ Every 3 years ☐ Every 5 years Every 7 years ☐ Every 10 years ☐ Other, please specify [50 words maximum] ☐ Don’t Know 4. Following a revaluation, do you think council tax band property value thresholds should be set at a national level or vary by council area? Thresholds should be set nationally to be the same across all council areas ☐ Thresholds should vary by council area based on local housing markets ☐ Don’t know 5. Which of the following is most important to you in the design of council tax bands ☐ Ensuring tax rises between bands are gradual and predictable (differentiation) ☐ Ensuring households in higher-value homes contribute more (progressivity) ☐ Don’t know Other, please specify [50 words maximum] It is important that bands are gradual and predictable (differentiated) as well as progressive where higher value homes contribute more.
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PUBLIC 6. Which of the potential council tax systems do you most support? ☐ Revaluation with 8 existing bands ☐ Revalued 12-band (differentiated) system Revalued 12-band (progressive) system ☐ Revalued 14-band system ☐ The current council tax system ☐ Don’t know 7. Which of the potential council tax systems do you least support? ☐ Revaluation with 8 existing bands ☐ Revalued 12-band (differentiated) system ☐ Revalued 12-band (progressive) system ☐ Revalued 14-band system The current council tax system ☐ Don’t know 8. Do you support the establishment of a transitional relief scheme to limit how much a household’s council tax bill can increase each year following reform? Yes ☐ No ☐ Don’t know 9. Which transitional relief scheme would you prefer? ☐ Scheme 1: Cap increases at 10% or £300 per year Scheme 2: Cap increases at 25% or £600 per year ☐ Other, please specify [50 words maximum] ☐ Don’t know 10. Do you support the establishment of a council tax deferral scheme for homeowners? ☐ Yes No ☐ Don’t know 11. In your view, who should be eligible to receive support from a council tax deferral scheme?
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PUBLIC [Select as many as you think should apply] Pensioners (over state pension age) ☐ Disabled people ☐ Households with children ☐ Households experiencing financial hardship ☐ Other, please specify [50 words maximum] ☐ Don’t know 12. Should households who defer payment pay interest on the amount deferred? Yes ☐ No ☐ Don’t know 13. Do you think the Council Tax Reduction scheme should be expanded to support more households following any reform? Yes ☐ No ☐ Don’t know 14. Which changes to the Council Tax Reduction scheme would you support? [Select as many as you think should apply] Broaden eligibility criteria for CTRS to include low-income households where the property moves into a higher band due to council tax system changes Change CTR so support is withdrawn more gradually as rising incomes move individuals out of eligibility ☐ No changes needed ☐ Other, please specify [50 words maximum] ☐ Don’t know 15. Do you have any information you wish to share that has not already been discussed in the paper on the impact of council tax reform on any of the following: - Groups who share protected characteristics - Island Communities - Businesses or organisations in the public, private or third sector - Your local area Please provide details, making reference to the type of impact to which your comments relate. [free text, 300 words maximum]
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PUBLIC • Until a new scheme is proposed and detailed work undertaken, we cannot determine the extent of the impact of any change. However, in terms of protected characteristics, some groups are more likely to be on fixed incomes – specifically those who are older, and those who have a disability/long-term condition. Renfrewshire has almost 23,000 households with no children and at least one adult aged over 65, with more than half of those being single-person households. Any rise in Council Tax would represent a larger proportion of their income. Those in homes which have been adapted to support independent living may not be able to easily downsize. It may be that we have residents in larger properties who are now asset-rich and cash-poor but more work would need to be done to understand the scale of that. • More than 1 in 5 Renfrewshire residents have a disability and/or long-term condition, according to the most recent Census data. In relation to the Fairer Scotland duty, Renfrewshire has a number of intermediate zones with levels of child poverty much greater than the average, and any increase in household costs could exacerbate that. The number of people in receipt of • Council Tax reduction in Renfrewshire is rising. We are also experiencing a rise in the number of tenants in arrears. • Our advice services have also observed higher numbers of clients presenting with priority debt (mortgage or rent arrears, council tax and utility debts) over “straightforward” non priority debt, loans, credit card and catalogues etc. 16. Please provide any other comments or views on the consultation themes or council tax reform that you have not been able to share above. [free text, 300 words maximum] • Funding of transitional relief scheme need to consider if that be taken into account with the Revenue grant or Councils having to adjust the band D charge. • There doesn’t appear to be mention of phasing banding increases (similar to transitional relief) limiting to 1 banding increase per year, this is an option which could be considered. • Responses in relation an expanded CTR scheme very dependent on how this would be funded, not possible for Councils to fund this. • Water charges not mentioned at all, they are already out of sync as the band E-H changes made a few years ago were not incorporated. In addition, CTRS is also already divergent in relation to water charges, major changes to council tax without accompanying changes to water add to the divergence billing would be more complex. Proposals should include an intention on Water charges. • Administration costs need to be fully reviewed depending on complexity of scheme e.g. deferral schemes, frequency of revaluation