The SNP leader made the pledge in his closing speech to the SNP party conference in Aberdeen on Tuesday (Oct 17).
It’s hoped that every council tax payer in Scotland will benefit from the freeze as rising prices continue to put a strain on household finances.
The First Minister hailed the announcement as ‘much needed financial relief’ to those already struggling with the cost of living.
He added: “We know that people are filled with dread when the bills are going up. We can’t stop all the bills rising, but where we can act, we should.”
More than 2 million households to benefit
The announcement signals a change in plan for the Scottish Government, which had previously proposed raising council tax rates by as much as 22.5% for higher band homes.
Now, almost 2.5 million households will benefit from the 2024 freeze.
However, while Mr Yousaf said the government will cover the cost of the freeze to ensure councils can maintain services, he has yet to outline how it would make up budget shortfalls for local authorities that would have raised taxes.
He told the conference: “Of course, the public sector across the UK is facing budget pressures as a result of UK Government austerity, and we know councils are facing financial challenges themselves. That’s why the Scottish Government will be fully funding this freeze to ensure they can continue providing the services on which we all rely. This is on top of the real-terms increase to local government revenue funding this financial year.”
Council tax debt one of the most common
News of the freeze also follows a warning by Citizens Advice Scotland that demand for council tax debt help has risen to record levels.
Figures from the organisation show that enquiries for council tax help are 35% higher than pre-pandemic levels and 25% higher than January 2023.
The reasons for falling into council tax arrears are varied, ranging from low income and trouble prioritising bills and people being unaware of stringent collection strategies by councils.
Finding support
Anyone concerned about council tax arrears is encouraged to seek professional support sooner rather than later.
People struggling to maintain council tax payments should speak with their local authority as soon possible to arrange a payment plan.
Alternatively, debt help companies like Carrington Dean can help manage council tax debt through solutions such as the Debt Arrangement Scheme or a Protected Trust Deed.
