SNP Unveils 6.5% New-Homes Tax to Fund Public Services

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  Published in House and Home on Tuesday, November 11th 2025 at 13:15 GMT by Daily Mail

SNP pushes a “punishing” new‑homes tax and a 6.5 % council‑tax rise in a bid to fund local services

The Scottish National Party (SNP) has revealed a fresh package of revenue‑raising measures that it says will help pay for the growing demand for health, education and other public services in Scotland. According to the Daily Mail’s coverage, the SNP’s plans include a new tax on newly built homes, a 6.5 % increase in council tax across the country and a shift to a 14‑band property‑valuation system that will replace the old 12‑band structure. The proposals are billed as “punishing” and “clobbering” but are presented by the SNP as a necessary step to keep local services afloat as the nation’s finances face a looming shortfall.

1. The new‑homes tax – a “punishing” levy

The Daily Mail article explains that the SNP would levy a 6.5 % tax on any new property constructed after the current fiscal year. The tax would be calculated as a percentage of the selling price of the property, and would be collected by the developer or the estate agent before the buyer takes ownership. The money would then be earmarked for the Scottish public health system and local authorities, the SNP claims.

“We’re not looking to do this for the sake of tax revenue – we’re looking to protect the future of public services that our people rely on,” a SNP spokesperson told the Daily Mail. “New homes are a public good, and it’s only fair that the costs of building them contribute to the wider community.”

The new‑homes tax would be applied to all newly built residential properties, including houses, flats and townhouses. The Daily Mail’s article points out that the policy would be far more severe than the current “supply‑side” duties that apply to existing properties. It also notes that the policy would create a “big financial burden” on developers and may have knock‑on effects on housing prices, potentially slowing the pace of new construction.

Opposition groups and housing advocates are already warning that the tax could stifle the supply of new homes and lead to higher rents for existing tenants. The Daily Mail quotes a local councillor, who says that the policy “will put an extra 6.5 % burden on new builders and ultimately on the property market.”

2. Council‑tax rise of 6.5 %

The article also reports that the SNP will increase the standard council‑tax rate across Scotland by 6.5 % in the upcoming budget. This rise will be applied to all property bands, and will raise an additional £1.6 billion for the 2,800 councils in the country. The Daily Mail points out that this is a “big increase” compared to the 3.4 % rise that the UK government has introduced in England, and that the SNP’s policy represents an extra 4.1 % over the existing rates.

“It’s a 6.5 % rise, and that is the steepest increase in council‑tax that Scotland has seen in the past decade,” the article notes. “The new tax is part of a broader strategy to ensure local authorities have the funding they need to provide essential services.”

The Daily Mail’s piece explains that the new revenue will be earmarked for health and social care – sectors that have struggled with funding shortfalls. The policy will also fund local services such as libraries, waste collection and public transport, the SNP says.

3. The 14‑band system – a “fairer” approach

A third pillar of the SNP’s plan is to move from the current 12‑band property‑valuation system to a 14‑band system. The Daily Mail describes this as a “fairer” approach that will spread the tax burden more evenly across different types of properties. The change would re‑categorise properties in a way that takes into account their size, location and value more accurately, the article says.

Under the new system, the 14 bands would be numbered from A to N, rather than the current A to L. The Daily Mail notes that the change is designed to reduce “tax inequity” and to ensure that higher‑valued homes pay a proportionally larger share of the council tax. The new bands will also be adjusted to reflect the market value of properties, which has been rising faster than the previous band thresholds.

The Daily Mail quotes a tax policy analyst who warns that the new band thresholds could create confusion for homeowners. The analyst says that the re‑banding “could result in sudden increases in council tax for people whose properties fall into a higher band as a result of the new thresholds.”

4. Context – the state of Scotland’s finances

The Daily Mail article situates the SNP’s proposals against the backdrop of a looming fiscal crisis in Scotland. It points to the fact that local authorities in Scotland have faced an 11.5 % funding cut over the last decade, and that the “cost of public services” has outpaced the growth of council tax. The piece cites the Scottish Government’s own data, noting that the average annual cost per person for health and social care is higher than the UK average, and that the country will need to raise additional revenue if it wants to keep up with the demands of an ageing population.

The Daily Mail also notes that the new home tax and council‑tax rise are part of the SNP’s broader “plan for a fairer, more sustainable Scottish tax system.” The party claims that it will ensure that local governments are not left “starving” while taxpayers continue to pay for public goods.

5. Reaction – praise, alarm and a political split

In the article, the SNP’s opposition party, the Scottish Conservatives, has condemned the proposals as “unfair” and “prohibitively expensive.” They argue that the tax will reduce investment in the building sector and could ultimately hurt the Scottish economy. The article reports that the SNP’s own internal debate is already heated, with some members arguing that the tax should be less severe or that it should be targeted only at luxury homes.

The article also quotes a local housing advocate, who says that “the 6.5 % rise in council tax is a double whammy – it will put a further burden on the people who are already paying high rates.” The advocate also fears that the new 14‑band system will increase the cost of living for middle‑income families.

Meanwhile, the Daily Mail notes that the Scottish Labour Party is uncertain about its stance – they may support the idea of raising revenue but have yet to agree on the best way to do it. The article ends with a warning that the proposed policies could “create a huge backlash” from the public and that the SNP must be careful if it wants to keep its hold on Scottish politics.

6. Links and further information

The Daily Mail article links to a number of other sources that provide additional context:

1. Scotland’s Treasury Budget – The government’s official budget documents, which detail the projected shortfall in local authority funding.
2. Scottish National Party policy documents – These outline the party’s view on “fairer tax” and how it intends to fund public services.
3. A press release from the Scottish Government – This explains the proposed 14‑band re‑valuation system and how it will be implemented.
4. An analysis from the Institute for Fiscal Studies (IFS) – This provides a quantitative look at the impact of the new tax on housing affordability.

While the Daily Mail’s article frames the policies as “punishing,” the linked policy documents emphasize that the goal is “to ensure that the people building homes contribute fairly to the costs of infrastructure, transport and social services.”

7. Bottom line – a “punishing” but “necessary” shift?

In summary, the Daily Mail’s coverage of the SNP’s new‑home tax and council‑tax rise paints a picture of a party that is determined to increase revenue in the face of escalating public service costs. The proposals will see a 6.5 % tax on new homes, a 6.5 % rise in council tax, and a switch to a 14‑band property system. While the SNP touts the policies as “fair,” critics argue that they could hurt the housing market, increase living costs, and ultimately have a negative impact on Scotland’s economy. The political debate is still ongoing, and it remains to be seen how voters will react when the policy proposals move from the policy room to the ballot box.