Homeowners could pay up to £200 more council tax a year from 2017

It has emerged home owners in Scotland could face significant council tax increases from next year.

Council leaders in Edinburgh want ministers to change the law so they can raise council tax for everyone apart from those living in the cheapest homes.

They said they were optimistic about persuading the government later this year about agreeing to the change. If the plans go ahead, they would cover all councils in Scotland – giving them the power to raise council tax rates from the beginning of the 2017-18 year.

Currently, council tax is divided into eight bands, with the council determining band D and the remanining bands being set relative to this.

But the council’s proposal would see each authority given the ability to raise bills for the top and middle bands while maintaining the bottom ones at their current levels.

The SNP leader at Edinburgh city council, Sandy Howat, said those living in houses in the middle bands – C to E – could see increases of between three and five per cent while those in the upper bands – F to H – might see rises of five to six per cent.

Those in the most expensive properties in the city could see tax increases of around £200 per year. It is also believed council leaders would have the support of a new SNP government following this year’s Holyrood elections if Nicola Sturgeon is returned to power.

Mr Howat said council tax was not working and that an interim solution was needed before eventually introducing a new tax.

He said: “I am optimistic that we will have a quicker reform rather than a slow revolution.”

However, the Conservatives argued the higher rates could affect those who cannot afford to pay, including pensioners who have low incomes but live in expensive properties.

Murdo Fraser, for the party, said: “It’s no good the SNP government having a council tax freeze if its own councils are planning to get round it in this way. We believe the tax burden on people is already sufficient, and now it’s time for the SNP to admit what it is really planning to do with local taxation.”