The Scottish Parliament’s management body believes that MSPs should be exempt from paying proposed higher rates of council tax on second homes in Edinburgh.
In a report, officers state that the Scottish Parliamentary Corporate Body has requested MSPs be exempted from second home taxes that could run up to £16k per year.
At Thursday’s meeting, councillors will vote on whether to reintroduce a 300% council tax premium on second homes and long-term vacant properties.
Edinburgh abandoned the tax days after introducing it earlier this year, placing a £3m hole in the city’s budget for the 2026/27 financial year.
The body told the Local Democracy Reporting Service the request was due to some politicians needing to maintain second homes in the city as their constituencies are far from the capital.
A spokesperson added: “Living in two different locations is a necessity of the job for around one third of MSPs.
“As Parliament meets these costs, the SPCB has sought an exemption to the council tax premium from the City of Edinburgh.”
Edinburgh stepped back from the tax after seeking internal legal advice, according to the report.
Several other councils stuck with increased tax premiums they introduced this year, the first year where they were allowed to do so after a decision in Holyrood.
Finance convener and Labour councillor Mandy Watt said the body had made the request due to some MSPs needing to maintain second homes in the city due to their work.
She added: “We were specifically asked to consider allowing MSPs to be exempt from the agreed rise in council tax for second and long-term empty homes.”
The Labour councillor continued to say this was due to some MSPs needing to maintain second homes in the city as a ‘base’ for their parliamentary work.
After retreating from the tax hike, the council undertook ‘further consultation and engagement’ on the policy.
Local authorities are free to set whatever rate of premium they want, with officers having originally proposed a 200% hike ahead of this year’s budget.
At present, owners of second homes and long-term empty residences pay a 100% premium, which was introduced in Edinburgh in 2024.
Councillors could still amend the premium charged at Thursday’s meeting.
After consultation with impacted homeowners, officers now recommend that the council continue with the hike.
In late September, councillors will also consider options to deal with the budgetary consequences of stepping back from the tax.
The report states that exempting MSPs from the hike would cost the council about £100k per year.
Officers assembled an integrated impact assessment based on consultation with affected property owners.
In it, officers found that affected owners felt that the council’s initial decision to apply the premium ‘lacked sufficient consultation or notice’.
In addition, they felt the premium increase was ‘punitive’ in nature, and that it represented unfair treatment of them.
Officers stated in the report that completing the impact assessment would “contribute positively to the Council’s having demonstrated paying due regard to relevant public equalities duties.”
Councillors will consider the report at next Thursday’s full council meeting.
By Joseph Sullivan Local Democracy Reporter
