1. To ask the Scottish Government what its position is on whether a greater increase in the Scottish child payment or a council tax freeze will do more to help families in poverty. (S6O-03006)

The Scottish child payment provides well-targeted support to the lowest-income families. It is estimated that it will lift 50,000 children out of poverty this year. We have committed to increasing the payment, in line with inflation, to £26.70 per week from April, and it is expected that 329,000 children will benefit from it in 2024-25. The Government is working with local authorities to help them to deliver the council tax freeze and to provide much-needed financial relief to more than 2 million council tax payers. Both measures are provided for in the budget, are unparalleled in the United Kingdom and will provide much-needed help for families.

Some people, especially those in the third sector, have argued that a council tax freeze will not help the poorest people, because they already do not pay council tax, but that it will help those who are better off, who pay more council tax. How would the cabinet secretary respond to that argument?

People who have the lowest incomes will benefit most from a council tax freeze. That is because, for them, council tax represents a larger proportion of their income than it does for people who are better off. The freeze is on top of the council tax reduction scheme, which supports people who cannot be expected to afford to pay council tax. However, the cost crisis has seen bills rise for households across the spectrum, and the freeze will give them some certainty for next year.

Councils across Scotland are having to slash their budgets due to the council tax freeze. That means that local services to help people in the most deprived areas will come to an end. How will that help them?

The position has been made clear on numerous occasions by the First Minister and the Deputy First Minister. I am happy to say, once again, that the council tax freeze will be fully funded by the Scottish Government. Work is on-going with the Convention of Scottish Local Authorities on the details of that proposal. That is a very important reassurance, which I am pleased to be able to give to the chamber again today.

It is recognised that council tax is regressive, which is contrary to the Government’s stated progressive outlook. What work has been undertaken to evaluate other models of less regressive and more proportionate property or land value taxes? When does the Government expect to complete that work?

Council tax represents a larger proportion of overall income for lower-income households than it does for richer households. The council tax freeze recognises the regressive impact of council tax, which underlines the importance of reform. We are committed to a fairer, more inclusive and fiscally sustainable form of local taxation. I have convened the joint working group on sources of local government funding and council tax reform, which is co-chaired by the Scottish ministers and the Convention of Scottish Local Authorities.