MSP expenses cap raised to cover second home council tax rise

The Scottish Parliament has increased MSPs’ expenses to allow them to use the public purse to cover the cost of council tax doubling on their second homes in Edinburgh.

In December, MSPs voted for legislation that gave local authorities the green light to raise council tax on second homes, and that has come into effect this month.

But the move would have hit those who rent or own a second property in Edinburgh so that they can attend the Scottish Parliament during the week.

Holyrood’s Scottish Parliamentary Corporate Body (SPCB) has decided to increase expense limits, to  cover increased council tax bills via the public purse.

The SPCB decided to lift the £20,700 cap on MSPs’ “Edinburgh accommodation allowance”, which they can use to cover the cost of staying in the Scottish capital away from their constituency homes.

It is expected to cost taxpayers about £70,000 extra to cover the extra council tax for the 38 MSPs who either have a rented flat or own a second home in Edinburgh.

‘Special treatment’

But the move has triggered fury because there is no similar workaround for any other second home owners in Scotland.

It also comes after MSPs were awarded a 6.7 per cent pay rise at the start of this month, taking their annual salaries to £72,195.

David Alexander, the chief executive of the estate agents DJ Alexander, attacked the move as providing MSPs with “special treatment” and said that they should pay the extra costs.

He told The Scottish Sun: “It seems that there is one rule for the public and another for MSPs. It would appear that there is no limit to the amount that taxpayers can be charged but there is definitely a limit to how much MSPs are willing to pay for their own policies.”

Fiona Campbell, the chief executive of the Association of Scottish Self-Caterers, said that the move feeds into the sense “politicians will manipulate the system for their own personal gain”.

She added: “There cannot be one rule for the general public and another for MSPs. There must be consistency and fairness across the board.”

The SPCB comprises an MSP from each of the four largest parties and the presiding officer, Alison Johnstone.

‘Significant increase in level of rent’

New papers show that it considered what to do about council tax doubling at its meeting last month.

A paper noted Edinburgh city council’s decision “to apply the full 100 per cent premium to properties considered to be second homes” and that none of the exemptions would apply to MSPs.

It said that there were 35 MSPs who rent a flat in Edinburgh for work purposes and three who own a property but claim costs relating to council tax.

The SPCB minutes said that it decided to provide “all 38 members who currently have a flat with an uplift” to their allowance “which is equivalent to the actual cost of their individual additional council tax premium”.

A paper setting out the options said: “For example, if member A’s council tax was £2,200 that would be their increase and if member B’s council tax was £1,500 that would be their increase.”

It also warned that “we are seeing a significant increase in the level of rent in Edinburgh, with some members who are having to move flat reporting they are struggling to find places”. The SPCB is examining the effect on the expenses limits.

A Scottish Parliament spokesman said: “The nature of the job means around one third of MSPs stay overnight in Edinburgh, with those eligible to rent a flat usually there three nights a week while Parliament is sitting.

“It is reasonable, therefore, in this context, that the increased cost of council tax is met by the Parliament.”