SOME county residents could be paying up to £500 more in council tax next year.

But nearly £2million of the additional council tax raised in East Lothian will be taken out of the county and invested in other parts of the country by the Scottish Government under new plans, it has been claimed.

The Scottish Government is expected to levy extra council tax charges on owners of higher band homes next year, raising their annual fees dramatically.

But while the extra ‘council’ tax will generate an estimated £3million income, Jim Lamond, East Lothian Council’s head of finance, has warned he does not expect it to be invested back into the county.

Speaking to a meeting of the council this week, Mr Lamond warned: “It is likely that despite raising up to £3million, it is my estimate less than a half of that, possibly even one-third, will return to East Lothian.”

The additional levy proposed by the Scottish Government for next year will be in addition to the planned three per cent rise already expected to be introduced by East Lothian Council across the board, as it prepares to raise council tax for the first time in nine years.

READ MORE: Council tax set to rise by 3 per cent in East Lothian

The Scottish Government wants to charge Band E households an additional 7.5 per cent, Band F households 12.5 per cent, an additional 17.5 per cent for Band G households, and 22.5 per cent for Band H homes.

In a report to the council, Mr Lamond said the Scottish Government proposed the additional revenue raised would be “used to provide an additional £100million per annum to an expanded national education attainment fund which will be directly distributed to schools.”

But he said the criteria used to decide which schools received most cash was based on the number of pupils who claimed free school meals and added that in East Lothian “we will almost certainly raise significantly more money locally from the change than is likely to be received in terms of direct funding for schools”.

Describing the proposals to redistribute money raised through council tax through a national scheme as a “seismic shift” in the way local authority-raised taxes are used, Mr Lamond said: “This proposal raises fundamental questions of the long-established direct linkage between money raised locally [being] spent locally.”

But Councillor Stuart Currie, SNP opposition leader, insisted that the Scottish Government’s finance minister had pledged that all money raised in local council areas would be spent there.

He told councillors: “On September 22, in Parliament, finance minister Derek Mackay categorically assured every local authority area every pound raised in council tax will stay in that area.”

The finance minister yesterday (Wednesday) told the Courier: “I can categorically assure every local authority area that every penny raised in council tax will stay in that local authority area.

“So the principle is there but I’m very clear that which is raised at a local level through council tax will stay with those local authorities.”

However, councillors in the administration insisted the Scottish Government was intent on ‘hiving off’ funds from local authorities.

Councillor Shamin Akhtar said: “Never in the history of council tax has the local demographic link been broken and that is what we have to oppose.

“If the SNP Government wants to raise money for a national initiative it has to raise income tax, not raid local government.”

And council leader Councillor Willie Innes said he was “appalled” by SNP councillors insistence the money would not be taken out of East Lothian. Councillor Innes said: “[SNP councillors] know full well that Government changes to council tax bands will go directly to pay for their attainment fund.”

But SNP councillor Fraser McAllister accused the administration of “well-rehearsed baloney”. He said: “This is the redistribution of wealth, a socialist idea. You do not have to be a Marxist to believe the rich should pay more.”

The Scottish Government additional multiplier payment would see council tax rates (not including proposed additional three per cent council rise) go to:

Band E: £1,468 (currently £1,366)

Band F: £1,816 (currently £1,614)

Band G: £2,189 (currently £1,863)

and Band H: £2,738 (currently £2,235).