KATE Forbes has defended her decision to end the cap on council tax rises amid warnings that householders could now face “massive” hikes in bills.

The SNP Finance Secretary said she expected local authorities to “do the right thing by their local populations” when they set the levy in the New Year.

The Scottish Tories accused her of a cynical and “cowardly” passing of the buck.

Ms Forbes yesterday gave local authorities “complete flexibility” over setting household tax bills in her draft Scottish budget for 2022/23.

It means next year will be the first since the SNP came to power in 2007 when council tax has not been frozen or subject to a tight cap.

Local elections next May mean councils are expected to keep rises to a minimum for fear of a voter backlash, but intense budget pressures point to bigger rises after that.

The council umbrella body Cosla has already said its £11.1billion settlement for next year represented a £100m cut in its resource budget.

Ms Forbes failed to mention council tax in her budget speech at Holyrood on Thursday, referring obliquely to more autonomy for local government instead.

The policy to end the cap was only spelled out in the 148-budget document.

It led to opposition claims that she had passed the buck to councils, who could have little choice but to hike the levy, which currently averages £1300 for a Band D home and around £3180 for a Band H property.

Interviewed on BBC Radio Scotland this morning, the Highlands MSP was asked why she had chosen now to remove the cap on council tax rises.

She said the SNP-Green Government had “protected the core budget in cash terms”, meaning a real terms cut, and “delivered real terms growth to the local government settlement, particularly around social care, which you'll know, is one of the pressures that they face”. 

She said: “For many, many years Cosla have been raising with me the need for further flexibilities and discretionary power and we delivered a package yesterday of flexibilities. Now, that includes Council Tax.

"But I have confidence that local government will do the right thing. 

“I have to do the right thing when it comes to understanding the impact of tax burdens on the local population, as well as ensuring that there is sufficient funding for public services.” 

Ms Forbes went on: “ think it is important that we give local authorities that discretion that they have asked for, time and time again. For fourteen years they have been asking for the discretion.”

Asked if she was worried about rises of 4 or 5 per cent, she said: “Council Tax on average in Scotland at a band D is considerably lower than anywhere else in the UK.

“Local authority elections are in May and I think local authorities will do the right thing by their local populations.”

Asked what she meant by that, she said: “Well, that is entirely a decision for them. 

“In previous years you might have been asking me questions about why we weren't giving local authorities more power. That's what I have done here… local decisions for local populations.” 

Tory MSP Miles Briggs said: “Everything Kate Forbes has done regarding Council Tax is cynical and calculating - but, ultimately, it’s the public who will pay, either through poor local services or huge Council Tax rises.

“Once again the SNP Government have under-funded local authorities. 

“By removing the freeze on Council Tax rises – without daring to mention it in the budget statement yesterday - they are passing the buck to councils to make up that shortfall, while knowing full well that, with local elections looming in May, they are in a bind.

“Ms Forbes’s message in her interview was cowardly and transparent: ‘Whatever goes wrong, blame your council, not me’. But the public will see right through it.”