The Scottish parliament has agreed to proposals that will see an increase in the council tax bills of the wealthiest households north of the border.

After April 2017, the rates paid by those in the four highest council tax bands—E, F, G and H—will be adjusted in a move that Holyrood estimates will generate an extra £100m a year.

The average band E household will pay around £2 per week more and the average household in the highest band will pay around £10 a week more.

The 75% of households that live in bands A to D will be unaffected by this change to the council tax band system.

Furthermore, the 54,000 households living in bands E to H on low incomes will be entitled to an exemption from the changes through the council tax reduction scheme.

Council tax bills have been frozen in Scotland since 2007 and the changes agreed by parliament yesterday will ensure that bills in every band will be lower than they would have been had the freeze not been in place.

Speaking after the vote cabinet secretary for finance and the constitution Derek Mackay said the extra money will be invested in Scotland’s schools.

‘The steps we have taken today pave the way for additional investment in schools right across Scotland to help close the attainment gap and are the first step in a journey of reform to make local taxation fairer,’ he said.

‘Our changes also make council tax more progressive and ensure that three quarters of households will see no rise in their bills as a result of these reforms.’

Mr Mackay MSP also noted that despite these reforms all Scottish households will pay less on average than under council tax regimes in England.