Almost half of Scots, 49%, support holding a local referendum
whenever a local authority proposes a large increase in Council
Tax, according to research by the Scottish Retail Consortium
(SRC).
The poll was undertaken by the Scottish Retail Consortium and
Opinium Research earlier this month. It comes as Scotland's local
authorities consider setting their Council Tax bills for the
coming year.
The idea of holding local referenda on large Council Tax
increases was most popular amongst those aged between 35 and 54
years of age. The poll also found a majority of Glasgow residents
were keen on the idea, and more than Edinburgh
residents.
The requirement to hold a local referendum on proposals for an
‘excessive' increase in Council Tax has been in place in England
since the early part of last decade. The threshold for what is
‘excessive' is determined annually by government, and is
currently 5%.
Scotland's average Council Tax rise for the current financial
year across the thirty two local authorities was a little shy of
10%; over three times the current level of inflation. The largest
increase was set by Falkirk Council, at 15.6%. Annual revenues
from Council Tax are approximately £2.9 billion. SRC estimates a
5% increase across the board would add £145 million to
households' Council Tax bills, on top of any uplift in water and
sewerage charges.
In 2025 Scottish retail sales grew by a meagre 0.8% whilst
shopper footfall dipped by 1.5%.
David Lonsdale, Director of the Scottish Retail Consortium, said:
“Consumer spending is the mainstay of Scotland's economy. Buoyant
household disposable incomes and confident consumers are critical
to the health of the retail industry and all who rely on it,
including the near quarter of a million Scots who work directly
in the sector.
“Last year's hefty increases in Council Tax collectively took a
£280 million bite out of consumers' spending power, adding to the
pressure on household finances on top of rising water and
domestic energy bills.
“It remains to be seen whether any further inflation-busting
hikes pique the interest of policy makers in allowing for local
referenda on chunky Council Tax rises, as is the case elsewhere
in other parts of the UK.
“What's not in doubt is that further hefty increases in council
tax could lessen households' propensity to spend and make trading
tougher for Scotland's retailers, at a time when shopper footfall
is becalmed and retail sales are lacklustre. It highlights the
need for a strategic rather than ‘ad hoc' approach to local
authority structures, efficiencies and funding.”
ENDS
Note 1: The polling question and responses:
In England, local authorities must hold a referendum on any
proposals that require a council tax rise above a threshold set
by UK Government; most recently this has been 5%. Some Scottish
local authorities, who do not have to hold a referendum to do
this, have increased council tax by almost 15% at the start of
this year. Do you think it is a good or a bad idea that councils
should have to hold a local referendum on any council tax rises
above a pre-agreed level?
Strongly supported – 30%
Somewhat support – 19%
Neither support nor oppose – 19%
Somewhat oppose – 13%
Strongly oppose – 6%
Not sure – 13%
NET: support – 49%
NET: oppose – 19%
Note 2: Local referenda on ‘excessive' increases in Council Tax
must be held in England – see ‘Council tax: local referendums'
research briefing published by House of Commons Library, February
2025 (SN05682.pdf).
Note 3: Two hundred and five people responded to the poll which
was undertaken by the Scottish Retail Consortium and Opinium
Research in early January 2026.
