| Councils in England claim they are being short changed by more than a £1 million each year due to a loss in council tax revenue from student exemptions and they are being forced to pass the bill on to tax payers.
Students are not liable for council tax, but Mr Macpherson says Dundee City Council are fully reimbursed by a government grant scheme and council tax payers are not meeting the cost.
In addition to the 3000 student households, there are a further 4400 exemptions in the city, including those with disabilities, that are free from paying council tax.
Councillor McPherson said there is a strong case for the city to receive an increase in the grant they receive, but not as a result of students.
He believes the declining population of the city and the high level of deprivation is having a detrimental effect on financing council-run services and he pledged the council will be stressing this to the Scottish Executive in the hope of acquiring an increased grant.
Councillor Macpherson said, “The system is complex and takes account of a whole host of factors, but the general principal is that the grant settlement is there to take account of council tax exemptions.
“It’s not being picked up by the council tax payer.
“Dundee is trying to secure an increase in grant settlements as there are particular issues facing the city.
“The declining population is having an effect on the grant settlement and we will continue to press for a fair settlement.
“We don’t see exemptions as a problem. Declining population is the argument we will take.
“Dundee also has a higher than average level of deprivation and we will speak with the Executive to ensure we secure the maximum settlement.” |
