Labour warn against council tax rise as Scots councils face £1 billion blackhole

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Labour warn against council tax rise as Scots councils face £1 billion blackhole
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Scotland's 31 local authorities predict a combined two-year shortfall of £1.12bn by 2025-26.

Labour has warned against raising council tax as Scottish councils face a funding blackhole of more than £1 billion by 2025.

Some 29 out of the 31 Scottish councils plan to make budget savings in the next year. The savings are worth a combined £302.2 million. Local authorities are also planning to use £211.8m worth of reserves in 2023-24. A Scottish Government spokesperson said: “The Scottish Government acknowledges the fiscal challenges facing councils but despite a decade of UK Government austerity measures, local government revenue funding is 2.6% higher in real terms than it was in 2013-14.

Just 23,060 of these households received a council tax reduction, leaving between 80,000 and 85,000 vulnerable to the increase.

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