SNP split over council tax freeze as ex-health secretary hits out

However, Angela Constance said that the government had a responsibility to give low and middle-income earners “certainty” during the cost of living crisis. 

The comments from the Justice Secretary come amid reports that the First Minister is also likely to row back on commitments to raise the Scottish rate of income tax. 

The likely ditching of “progressive” tax hikes - as first revealed by Brian Taylor in Saturday’s The Herald - comes as the SNP seeks to “recalibrate” following the party’s drubbing at the Rutherglen and Hamilton West by-election. 

READ MORE: Brian Taylor: SNP may freeze income tax rises

Mr Yousaf left council leaders stunned on Tuesday when he told the SNP conference that next year, council tax will be frozen.

The announcement was not just a surprise to councils but also the SNP’s partners in Government, the Scottish Greens, who were given only a few hours’ notice.

The freeze had two elements - abandoning a plan to restructure the tax to raise bills for Band E to H houses by 7.5 to 22.5% from April and paying councils not to raise the levy as part of their annual budget setting process in the spring.

The restructuring was due to raise around £175m and the annual rise around £100m.  Ministers have said they will compensate councils for the latter element, but that is now subject to negotiations.

Ms Contance told the BBC’s Sunday Show: “There are always many priorities in government and it's the job of government to set those priorities and as well as responding to emergency situations, which we have been doing over the past few days, there is another emergency and that's that the cost of living emergency. 

“And there is a growing expectation that where possible the Scottish Government gives certainty to people and their budgets, particularly for low and middle-income earners.” 

READ MORE: OPINION: Council tax freeze: We will all pay a huge price for Yousaf bombshell

The minister insisted Mr Yousaf valued the government’s relationship with local government, and pointed to the joint response to Storm Babet. 

“What I have seen firsthand over the past few days is local and national government working hand in glove as we move from this emergency phase into recovery phase in response to the extreme flooding that has been experienced in many parts of Scotland.”

She added: “The First Minister has a duty to serve the people of Scotland and right now, there is a cost of living crisis. And his announcement will benefit two and a half million households in Scotland.”

Ms Constance said she was briefed in advance about the announcement. 

The freeze was criticised by former health secretary Ms Freeman. 

She told the programme the measure should have been targeted rather than universal. 

“My own view is that it's not something I personally agree with. I think if you had frozen council tax for a group of people in lower bands, who earn significantly less, ie not frozen it for me or others in properties like I have the privilege to live in, then I could see a sense of that. 

“I could see an argument that says we are going to raise council tax for these bands of property, but not for the rest. I think that is progressive. 

“I could see a progressive argument for that.”

She also said it was a “failure” that no government since devolution had tackled the issue of council tax. 

Ms Freeman, who also served as Jack McConnell’s special adviser when he was first minister, said she did not think the announcement was “handled particularly well.” 

“I mean, I don't see how I could say anything else. I don't think it was handled particularly well, because after it all we've had is coverage not about the announcement but about people's anger and annoyance at the announcement. So that's never a good thing.”

“I have been around conference speeches before I was in government and I know that there is always a pressure to have important things to say,” she added.

“And that can lead you to focus on what you're going to say to the expense of how is that going to play and what does that actually mean.”

READ MORE: Storm Babet: Brechin residents may not get back home until Christmas

The freeze and the likely decision not to hike income tax are all part of the party's plan to shift away from policies that could hit the pockets of the middle class.

Asked about the prospect of income tax rises in December’s budget, one senior party figure told the Sunday Times: “It’s not going to happen.”

A senior SNP source said: “If we can get to a position where we are not raising income tax then everyone would welcome that. I think that would be everyone’s aspiration.”

Mr Yousaf's initial instruction to Shona Robison to raise taxes came in a “mandate letter” when the First Minister set out his Programme For Government.

In it, he said the Finance Secretary had agreed the 2024/25 Scottish budget would be underpinned by tax measures which improved “fiscal sustainability”.

He said she would “use our tax powers in the setting of the 2024/25 Budget to further progress delivery of the most progressive tax system in the UK by making tax policy choices that are informed by public and stakeholder views”.

During the SNP leadership contest, Mr Yousaf said he was attracted to an STUC proposal for a new 44p income tax band on income between £75,000 and £125,140, raising £200million a year.

However, the Sunday Times reports that there are fears that further tax rises could change the behaviour of workers earning up to £50,000, stopping them from spending money on products such as white goods and home renovations.

“If you take a stuffing in a by-election and you don’t change course, you deserve everything you get,” one source said.

“The fact that Humza has been quick to do that is to his credit. He cut to the chase and got to the point. The Tories lost two by-elections and are on the TV pretending nothing is wrong, with their fingers in their ears. We are nowhere near them in terms of problems but we made the change quickly.”

One insider told The Herald's Brian Taylor that the Government accepted that they had “lost the narrative” and were seen as more focused on recycling and gender recognition reform than the cost of living.

Asked about this recalibration, Ms Freeman said: “If you are a party as the SNP is, which says 'we stand up for the people of Scotland' then you need to be where the people of Scotland are.”

“Politicians always say this, ‘We've heard what people are saying we're listening’. 

“Great. What are you going to do about that? 

“And if that means that you need to look again, where you prioritise your political efforts, backed by your resources, which I think is the job of government, go for it. 

“And let there be a proper debate between what the Scottish Government says are the priorities and where it wants to put resources and what the opposition parties say.” 

Ms Freeman said that all parties needed to have an honest conversation with voters. 

“The Scottish public are sophisticated, astute, and well able to engage in detailed political discussion. Could we please allow them to do that by treating them with respect and having those discussions, stop the point scoring?”

She said politicians needed to “start debating the difficult issues about tight resources” and “hard-pressed families’ priorities, that therefore means there are some things you're not going to spend money on because you're going to dedicate resource to something that's more important.”

Responding to Ms Constance's interview, the Tory Shadow Cabinet Secretary for finance and local government, Liz Smith said: “The lack of transparency and proper process in Humza Yousaf’s decision to freeze council tax has undermined local authorities yet again.”

“Angela Constance has admitted that Cabinet was told in the days leading up to the announcement, yet COSLA, councils and even their partners in government, the Greens, were left in the dark.

“The SNP have ignored the Scottish Conservatives repeated calls for a fair funding deal for councils and have instead chosen to plunge them into financial uncertainty with the surprise council tax freeze.

“Councils are now faced with the devasting prospect of making savage cuts, vital day-to-day services will be impacted, and ordinary households will pay the price for Humza Yousaf and the SNP’s empty promises once again.”