The Scottish Government's forthcoming Council Tax (Scotland) Bill will grant local authorities further "discretionary powers" to set council tax, on top of the "mansion tax" First Minister John Swinney is already introducing in 2028. Critics warn this could push bills even higher, pointing to earlier discretionary powers introduced in April that let councils impose unlimited surcharges on second homes and long-term empty properties, which some authorities used to charge up to six times the standard rate.

Under the mansion tax plan, two new council tax bands (I and J) will apply to homes worth over £1million and £2million, potentially raising £16million a year, with an illustrative Band I bill of £4,770 and Band J of £7,650. A separate proposal floated last year suggested revaluing properties and creating up to 14 bands, with bills reaching £6,515. Scottish Conservative finance spokesman Craig Hoy accused the SNP of using new taxes to plug a £5billion funding gap rather than reforming benefits spending, while the Scottish Government said the changes would raise additional funding for councils and had not yet detailed the full scope of the new powers.