Dundee households are paying one of the highest rates of council tax in Scotland despite salaries languishing well below the national average.
Data analysis by The Courier shows city residents face higher costs than all but four council areas in the country.
For a Band D property in the City of Discovery, households pay £170 more per year than those in neighbouring Angus — one of the cheapest.
It comes as research by switching advice service Utility Bidder shows median annual pay last year in Dundee was £25,613 — the ninth lowest of any city in the UK.
Council tax has long been criticised for hitting deprived areas such as Dundee disproportionately harder.
Analysis shows people in lower-value homes end up paying more in proportion to the price of their home than those in higher value homes.
Lowest-income areas ‘worst hit’
Campaign group Fairer Share has been calling for the system to be overhauled for years.
Andrew Dixon, chairman and founder, said: “Every year council tax remains unreformed, the more and more regressive it becomes, leaving those in the lowest-income areas with the highest tax burden.
“All the evidence points to council tax being out of date and unfair.
“But despite fairer alternatives being put forward by the Scottish Trades Union Congress and others, there has — so far — been a disappointing lack of political will to create a better system.”
Dundee City Council’s SNP majority administration recently voted through a number of service cuts as well as a 4.75% hike in council tax from April 1, the highest for a number of years.
Although a smaller rise than most council areas, it still means significant rises for households already struggling to cope with the cost-of-living crisis.
It’s in contrast to Angus, which has the fourth-cheapest rate of council tax, and Fife and Perth and Kinross, where households pay close to the average in Scotland.
The SNP pledged to scrap council tax ahead of the 2007 Holyrood election but has failed to bring forward a replacement.
SNP ‘entirely to blame’ for high Dundee rate
Dundee Liberal Democrat group leader Councillor Fraser Macpherson believes the blame for the situation lies squarely at the foot of the SNP both locally and nationally.
He said: “The SNP is entirely to blame for the fact that Dundee has one of the highest council tax levels in Scotland.
“That’s the SNP government for its continual and repeated failures to give Dundee a proper level of revenue support grant funding each year – and the SNP administration on the council for its unwillingness to look at ways to keep the council tax increase down as far as possible.”
He said a rise of as little as 1% was possible but ignored by the SNP administration.
He added: “Dundee SNP continually drones on about it ‘being ambitious for the city’ but their flat-footed record on council tax pours doubt on that claim – millions of pounds of cuts and a huge council tax increase to boot.”
Outgoing First Minister Nicola Sturgeon has previously said she still wishes to reform council tax but blames the Conservative UK Government for introducing it in the first place in 1993.
‘Modest’ council tax increase needed
The council’s finance spokesperson, Councillor Willie Sawers, said: “Balancing a council budget is a complex business.
“This year we chose to continue funding food provision and other cost of living support across the city.
“We believe that this expenditure is justified and explains a modest level of council tax rise. It’s important to stress that Dundee has one of the lowest council tax increases in the whole of Scotland.
“This compares with the situation in England where the average Band D rate last year was £1,966.”
Conversation