Humza Yousaf has pledged to freeze council tax for Scots next year, with the Scottish First Minister also announcing “ambitious” plans to issue bonds to help fund “vital” projects.
The headline announcements were made by the SNP leader as he closed his party’s annual conference in Aberdeen.
But his plans to freeze council tax in Scotland next year could spark a rift with the Scottish Greens, who are the SNP’s junior partners in Government at Holyrood and who were only told about the move on Tuesday.
The Scottish Government had previously opened a consultation which could have seen council tax on the highest band properties increased by between 7.5% and 22.5%.
I can announce to the people of Scotland that, next year, your council tax will be frozen— First Minister Humza Yousaf
But Mr Yousaf insisted the freeze was needed to help with “almost everybody in Scotland” left struggling in the “Westminster cost-of-living crisis”.
There was no mention however of how much money would be provided to councils as a result – with discussions now set to take place with local government leaders.
Cosla, the body that represents Scotland’s 32 councils, said it had not been told of the freeze prior to the speech.
A spokesperson said: “We have just heard the announcement made at the SNP conference in relation to freezing council tax. We were unaware of it in advance.
“This has longer term implications for all councils right across the country, at a time when we know there are acute financial pressures, and where we are jointly looking at all local revenue raising options.”
We have just heard the announcement made at the SNP Conference in relation to freezing council tax. We were unaware of it in advance— Cosla spokesperson
Ross Greer, the Scottish Green finance spokesman at Holyrood said his party was “concerned about the effect this freeze could have on already-strained frontline public services if it is not properly funded”.
However, Mr Yousaf insisted that action was necessary, saying that it “feels like too many are struggling, no matter how hard they work”.
He told the conference: “I can announce to the people of Scotland that, next year, your council tax will be frozen.
“That’s the SNP delivering for people when they need it the most.”
The announcement on both that, and the Scottish Government issued bonds, came in what was Mr Yousaf’s first keynote conference speech since succeeding Nicola Sturgeon as Scottish First Minister and SNP leader earlier this year.
Speaking as he closed his party’s annual conference in Aberdeen, the First Minister pledged an additional £300 million for the NHS over the next three years to help reduce waiting lists, saying that currently “too many people are still waiting too long for treatment”.
He also promised £500,000 for a pilot project that will see woman fleeing abusive partners given up to £1,000 to help pay for essentials, with the Fund To Leave to be piloted in the five council areas which have the highest number of women presenting as homeless because of abuse.
Mr Yousaf went on to pledge £500 million of Government cash would be invested over the next five years to help develop a supply chain in Scotland that can support offshore, renewable energy projects.
And, over the next five years, he said investment in arts and culture would more than double.
“By the end of the five years, our investment will be £100 million higher than it is today,” the First Minister said.
On the Scottish Government’s plans to issue bonds, Mr Yousaf said this was the “most ambitious proposal yet”.
He stated: “To fund vital infrastructure like affordable housing projects, we will issue Scotland’s first ever bond.”
The First Minister added that that by the end of this current Holyrood term in 2026, the Scottish Government would “subject, of course to due diligence and market testing, go directly to the international bond market for the first time in our own right”.
Such a move, he said, would also demonstrate Scotland has the “credibility to international markets that we will need when we become an independent country”, the First Minister insisted.
His conference speech came in the midst of difficult times for the SNP, after the party lost the Rutherglen and Hamilton West by-election earlier this month to Labour, while MP Dr Lisa Cameron quit the party to join the Tories.
With the SNP coming under increasing pressure from Labour in polls in Scotland, Mr Yousaf used his speech to attack the party’s UK leader, Sir Keir Starmer.
“When it comes to values, I’ve got absolutely no idea what Keir Starmer stands for,” he said.
“The closer he gets to Downing Street, the further he retreats from his principles.”
He criticised the Labour leader for his refusal to commit to scrapping the so-called rape clause – which prevents families from claiming some benefits for more than two children – should it win the next general election.
Mr Yousaf insisted: “The so-called rape clause is one of the cruellest policies devised by this inhumane Tory Government.
“The only fair thing to do with the rape clause is to abolish it.”
While Mr Yousaf attacked the Conservative Government at Westminster during his speech, he did not mention Prime Minister Rishi Sunak.
However, he singled out Home Secretary Suella Braverman for criticism after her recent speech to the Tory conference warned of a “hurricane” of migrants coming to the UK and other western countries.
“When I hear that dog-whistle language it makes me shudder,” Mr Yousaf said.
He added: “Suella Braverman’s most compassionate moment came when she stood on the tail of a guide dog at conference.”
With the SNP having previously frozen council tax for several years after the party first came to power, Labour shadow Scottish Secretary Ian Murray said: “Fresh out of ideas for 2023, Humza Yousaf seems to have reached for the SNP’s 2007 manifesto for inspiration – but after 16 years of broken promises Scots aren’t buying it any more.”
Scottish Liberal Democrat economy spokesperson Willie Rennie insisted it was an “unfunded tax cut” like those from previous Tory prime minister Liz Truss.
Blasting Mr Yousaf’s administration, the Lib Dem said: “This Government is divided, volatile and incompetent just like Liz Truss’s was.”
Scottish Conservative leader Douglas Ross accused the First Minister of being “happy to waste more taxpayers’ money on promoting independence despite Scots struggling with a global cost-of-living crisis”.
The Tory insisted: “It is completely the wrong priority for Scotland at this time.”
