The leader of Edinburgh City Council has told SNP ministers to make their minds up about the future of council tax as he warned the capital will need an extra £20 million of funding to offset any freeze.

Humza Yousaf announced that council tax will be frozen next year in his keynote address at last month’s SNP conference.

But the announcement came without consultation with the umbrella organization for Scottish councils, Cosla, or the SNP’s government partners, the Scottish Greens.

Now the Labour council leader of the capital city has warned that the move is another example of the Scottish Government taking power away from local authorities as he stressed the freeze will help wealthier households more than those struggling through the cost-of-living crisis.

Read more: Analysis: Why did Humza Yousaf backtrack on commitment to local councils?

Labour leader of Edinburgh City Council, Cammy Day, said that Cosla has “some reservations” about the policy to freeze council tax.

He said: “It’s great to be able to give our residents a council tax freeze, but this is not a progressive tax.

“Council tax is the only tax-raising power that councils have and once again, the SNP Government is taking control of it.

“This benefits the wealthiest people most.”

Mr Day vented his frustration at the lack of progress in reforming council tax, as the Scottish Government has been promising to do so, since it came to power in 2007.

He said: “The SNP came to power in 2007 and has still not delivered its promised reforms to council tax. In the summer, they were consulting on maybe raising council tax for the higher bands.

“Can the SNP make their mind up?

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“If they are having a freeze, it needs to be fully funded.”

The council leader, who has been a councillor since 2008, warned that his authority will need around £20 million of additional funding, alongside its core funding deal for the next financial year, to offset the proposed council tax rise for the capital.

He said: “We were looking at around 5%, which could be I think, around the £20 million mark. But some councils are looking at much higher than that, I think Shetland was even proposing 10%.

“Our call is local decisions being taken locally. All we are asking for is fair funding for the capital city.

“Our core budgets have been cut in real terms for many years, so for this to be funded fairly, it needs to be alongside our core budget being a fair deal.”

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SNP Local Government Minister, Joe FitzPatrick, insisted “the council tax freeze will be fully funded”.

He added: “It is important that, at this time of pressure on family budgets and other financial burdens, we are able to remove that uncertainty.

“It took two weeks, but it is pleasing that the Labour Party now appears to support the council tax freeze. I do not know the Conservative Party’s position on the council tax freeze, but it is important that, at a time when family and household budgets are so pressed, we do everything in our powers to support people, and that is what we are doing.

“I am pleased that we have Labour’s support.”