By Councillor Kelly Parry, COSLA Resource Spokesperson

It is a privilege to take on the role of COSLA Finance and Resources Spokesperson at a time when there is growing momentum for change across Scotland's public services. I take up this post at a critical time for change. With the Scottish Government seeking to accelerate public service reform, we have an opportunity to work constructively with the Scottish Government and partners to deliver lasting change.

Local Government has consistently made the case for a fairer council tax system, one that is more proportionate and better supports local democracy.

Every year, council tax helps fund the local services that communities across Scotland rely on every day, from schools and social care to roads, parks and libraries. While it is one of the most visible ways residents contribute to local services, council tax accounts for around 20p in every £1 spent by councils, with the remainder coming largely from Scottish Government funding.

Council tax is an important contribution to the services councils provide. Understanding that local services are funded through a combination of local taxation and Scottish Government sheds light on the full picture of how councils are funded. In England Council tax makes up 46% of their total income in Scotland it is only 20%.

At the household level, the basis of how much each household pays per day is still anchored to the housing market conditions from the 1991. The original valuation base has remained the same in Scotland and England. However, Wales revalued their council tax in 2005. The drivers for this change were based on improving fairness, accuracy and public confidence.

A tax system works best when people can see that it is fair, based on accurate information, and applied consistently. These principles help build public trust. They also making it easier for residents to understand how contributions are shared and why they are being asked to pay what they do.

Residents have a right to know not only what they pay, but what they get in return.

As a councillor for Midlothian West since 2015, and Council Leader since 2022, I've seen first-hand how important that question becomes each year as councils set their budgets.

Every budget is built on months of work by officers and careful consideration by councillors. Difficult decisions must be made, balancing statutory services, local priorities, investment in roads, schools and other community assets, and what people can reasonably afford to pay. Getting that balance right is one of the most important responsibilities of local government.

COSLA and the Scottish Government have been working together to engage people on the future of council tax in Scotland. This built on research published in October 2025 on the impact of potential reforms. A series of town hall events took place across the country, alongside an online survey that received more than 1,000 responses. I look forward to seeing the findings and next steps in the months ahead.

The aim of the consultation was not about raising more income for Councils, the focus instead was about ensuring a more just council tax system. One where those living in higher valued properties may contribute more, but also a system whereas those in lower value properties can contribute less and be supported better. It is about making the system more just, more balanced and better aligned with people's ability to pay.

Reforming council tax has been a long-standing priority for local government. The 2026 Scottish Budget included plans for two new council tax bands for the highest-value properties. Subject to approval by the Scottish Parliament, these changes would take effect from April 2028 and apply to fewer than 1% of properties. Work is now underway to develop the legislation and determine the level of charges that will apply.

The introduction of two new council bands, while an important step, is no substitute for wider reform. A revaluation of council tax properties bands would help deliver fairer outcomes, particularly for lower-income households.

While property markets have changed dramatically over the past 35 years, council tax band valuations have not, creating significant distortions and raising fundamental questions about fairness in the way households contribute to local services.

There will be a chance to refresh and future-proof the council tax system when the new legislation on the two new council tax reaches the Scottish Parliament. Regular revaluations are a key part of ensuring the system remains fair, relatable and credible. By taking the reform of council tax forward together, we can help build a more sustainable and trusted council tax system in Scotland.