The Scottish Government and COSLA have launched a major consultation on the future of council tax, aiming to modernise a system that has remained largely unchanged since its introduction.
Key reforms under consideration include updating the current 1991-based property value reference point to reflect present market values and introducing new tax bands—both at the top and bottom of the scale—to make the system more progressive.
They’re also exploring localised revaluation options, where band thresholds vary by council area, and transitional support measures to ease adjustment for households.
The consultation closes on 30 January 2026. Stakeholders—households, community organisations, and local authorities—are encouraged to contribute their views.
Commenting on the consultation, Cllr Katie Hagmann, Convention of Scottish Local Authorities (COSLA) resources spokesperson, said: ‘Reform is long overdue. This important work marks the beginning of a process to build consensus around a better system of local taxation.’
A recent report by Tax Justice Scotland found that property wealth has surged by almost £100bn in just 10 years, while the council tax system remains unchanged.
Jamie Livingstone, head of Oxfam Scotland, a member of Tax Justice Scotland, said: ‘Our tax system can do so much more to help build the country the people of Scotland want, but, right now, it’s stacked in favour of the wealthy. It’s time to fix the system; and that must include better taxing wealth right across the UK and, in Scotland, finally replacing the outdated council tax.’
