New plans by the SNP to increase council tax will result in £12.4m moving out of Perth and Kinross and being relocated to Dundee, with the City of Discovery set to benefit by £13m over the course of the policy.
Research from the Scottish Conservatives has shown that the controversial proposals, which will increase tax for bands E to H, will not let councils spend any of the extra revenue they raise. Instead, the money will be centralised and spent on an attainment fund in other areas.
In Perth and Kinross, council tax payers will fork out an extra £12.4 million over four years, which will be redistributed to other areas of Scotland with Dundee being a significant beneficiary.
In order to push the plans through the Scottish Parliament, even the SNP were forced to admit that their plans "undermine the principle of local accountability and autonomy".
Murdo Fraser MSP has said the plans amount to a “tax grab” on Perth and Kinross and damage the principle of local accountability.
Murdo Fraser MSP said:
“People across Perth and Kinross, whose Council tax is increasing, will be dismayed to learn that this money is not being spent on schools in the region but elsewhere in Scotland, with Dundee set to see a £13m net increase over the next four years.
“The Scottish Government’s plans threaten a fundamental part of local taxation – which is the money raised in an area should stay in that area. Last week SNP politicians acknowledged this fact and even voted in favour of a motion criticising this approach.
“These figures will no doubt anger parents living in modest homes who are now being taxed more to subsidise schools out with their area. This is quite simply wrong and is yet another example of local decision making being centralised by the SNP.”