Scotland's cash-strapped town halls are preparing to write off almost £100 million of council tax arrears.
Now householders who do pay their dues are bracing themselves for another round of swingeing bill hikes this spring – while local authorities are squeezing services in return.
Yet new figures show that council chiefs are set to cancel massive arrears run up by those who can’t or won’t settle what they owe.
In 2024/25, Scotland’s 32 councils put aside £92.8 million for ‘provisions against doubtful debts’ – equivalent to employing around 2,600 new teachers.
Elliot Keck, campaigns director at the TaxPayers’ Alliance, said: ‘This exposes a deeply unfair council tax system where those who play by the rules are being hammered.
‘Councils have set aside over £92 million to cover doubtful council tax debt, while being given the green light by the SNP to push through yet more hikes.
Council tax pays for crucial local services but £100m in debts could be written off
Elliot Keck of the TaxPayers' Alliance said those paying their bills are being disadvantaged by the plans
Scottish Conservative finance spokesman Craig Hoy said those who pay on time are subsidising those who don't
‘Ministers and councils should focus on collecting what’s owed and stop expecting responsible taxpayers to foot the bill.’
Scottish Tory finance spokesman Craig Hoy added: ‘It’s doubly unfair that those who do pay are having to subsidise those who have defaulted in previous years.
‘We’re all paying more but getting less as a result.’
Council balance sheets were published by the Scottish Government earlier this month and showed that local authorities raised £4 billion in council tax and associated penalties last year.
However, £1 billion of that total was lost to reductions including discounts and exemptions, as well as arrears classed as ‘doubtful’.
Glasgow is preparing to cancel £19.6 million of debt, Edinburgh £11.1 million, Aberdeen £7 million and North Lanarkshire £5.9 million.
A dozen councils – including Stirling, Highland, Midlothian and East and South Ayrshire – have seen their provision for bad debt rise to a record high.
The national total of £92.8 million for 2024/25 was only surpassed during the pandemic when £94 million was written off in 2020/21.
Council tax bills are set to soar again in April, with SNP ministers giving local executives carte blanche to set eye-watering hikes.
Last year, Falkirk imposed a 15.6 per cent rise on householders while cancelling £1.07 million of debt, up 11 per cent from £0.96 million in 2023/24.
Orkney chief executive Oliver Reid is among many town hall leaders enjoying a big pay rise this year.
Glasgow City Council is planning to cancel almost £20million of debt
Yet islanders were last April hit with a 15 per cent increase in council tax and above-inflation rises in charges for school meals, swimming lessons and football pitch hire.
At the same time, Orkney was setting aside £145,000 for bad debt – up 32 per cent in a year from £110,000.
Local authority umbrella group Cosla did not respond to requests for comment.
A spokesman for Glasgow City Council said: ‘There are a variety of reasons why sums become difficult to recover over time.
‘Councils can and do continue to collect arrears many years after bills are due.
‘It is vitally important that people who are liable to pay do pay for the services that we all rely on.’
