Title

FINANCE

Think-tank calls for fiscal devolution

Council tax and business rates in Scotland should be devolved in full to local authorities, a think-tank has argued.

Council tax and business rates in Scotland should be devolved in full to local authorities, a think-tank has argued.

Reform Scotland said local democracy was undermined by the current local taxation system because it is out of the control of elected councillors.

The think-tank believes this weakens the link between councillors and the people who elect them, causing a loss of faith and a lack of participation in local politics and local elections.

‘Local democracy in Scotland is severely constrained because councils have insufficient power to do what they would like to do and are therefore not genuinely accountable to local voters,' said Reform Scotland's director Geoff Mawdsley.

‘In large part, that is because local authorities have almost no control over local taxation.

‘If we truly believe that decisions should be made closer to those whom they affect, then we need to rejuvenate local democracy,' Mr Mawdsley continued.

‘That's why we want to see council tax and business rates devolved to local authorities in full - bands, rates, increases, cuts, applications, the lot.

‘Together with the money councils raise from rent, sales and charges, they would raise about half of their own spending, with the remainder coming from the continuation of the General Revenue Grant.'

FINANCE

OBR warns pressures on council finances remain

By Sir Stephen Houghton | 13 March 2026

While the Local Government Finance Settlement represents a welcome step towards fixing local authority finances, the absence of long-term financial stability...

FINANCE

Future Forum: Councils must put 'rules and tools' in place ahead of political change

By Ann McGauran | 12 March 2026

Councils need to put ‘rules and tools ‘ in place if they are expecting a political change ‘or a lot more challenge’, the Future Forum has heard.

FINANCE

Future Forum: Reorganisation threat to transformation

By Martin Ford | 12 March 2026

Fears that ambitions to include transformation alongside local government reorganisation may not be realised have been voiced at The MJ’s Future Forum.

FINANCE

New boundaries, new politics?

By Duncan Flynn | 12 March 2026

As the sector awaits the Government’s decision on the boundaries for unitary authorities in the vanguard of reorganisation, Duncan Flynn looks at how the pot...

Popular articles by William Eichler