WEEKS of fierce negotiations have ended with Inverclyde Council’s leader and the Scottish Government striking a deal which is set to see a council tax freeze implemented across the district this year.

Stephen McCabe has today confirmed that he will ‘reluctantly’ put forward a plan to give locals a rebate on their council tax in 2024/25. This would wipe out a previously approved increase of 8.2 per cent.

The local Labour leader has stated that he will only make the move once he has received written confirmation that Inverclyde Council will receive a £2.9m grant that was previously promised by Deputy First Minister Shona Robison if rates were frozen.

The £2.9m was Inverclyde's share of the £147m from Holyrood set aside for a council tax freeze and a further £62.7m which was put forward.

Inverclyde Council was one of only two local authorities who chose not to comply with the Scottish Government’s demand for the local levy to be frozen in 2024/25.

However, Cllr McCabe wrote to Ms Robison after the decision to raise rates was made and offered her a compromise agreement, which was initially rejected when they met on March 8.

But the Telegraph understands that the Scottish Government is now set to accept proposals set out by Cllr McCabe, which will ensure a council tax freeze is delivered here.

In a statement, Cllr McCabe said: “It has been deeply frustrating that Scottish ministers continue to insist that the council can only have access to the £2.9m of taxpayers’ funds set aside for Inverclyde if we agree to implement a council tax freeze.

“Contrary to what they claim, this is a regressive tax policy that doesn’t benefit the lowest income households.

“It is also undemocratic and a clear breach of the Verity House Agreement [between the government and councils].

“As each day passes the impact of the council tax freeze on local government services and jobs across Scotland, including on education and social care, becomes more evident.

“The £210m the government set aside for the freeze would have been better spent on protecting these services and jobs.”

The council leader has agreed, subject to receiving written confirmation, to put his rebate proposal in front of the council’s policy and resources committee at the next available opportunity, paving the way for an end to the row.

He has also indicated that, prior to any budget decisions taken in February 2025, he will recommend to the council that Inverclyde’s council tax bands be reset to the level they were at in 2023/24, before the 8.2 per cent rise was recently approved at a stormy meeting in the Municipal Buildings.

Cllr McCabe has said he will only be prepared to make this recommendation if the Scottish Government guarantees that his local authority’s share of the £147.3m and £62.7m are baselined from 2025/26 onwards.

He has also ruled out bringing forward the proposal next year if the Scottish Government does not give him confirmation at that time that there will be no nationally imposed council tax freeze or cap in 2025/26.

The council leader added: “It should be borne in mind that without three small councils – Inverclyde, Argyll & Bute and Orkney – being prepared to stand up to Scottish Government ministers they would not have come up with the extra £62.7m.

“All councils should be grateful for the stance we took.

“While there were no meaningful negotiations between the Scottish Government and COSLA over the council tax freeze, the Scottish Government has been forced to negotiate directly with the three councils.

“We have reinforced the principle that it is councils, and not the Scottish Government, that set council tax.

“I hope that the Scottish Government learns a lesson from this year’s budget process, and we have no more nationally imposed council tax caps and freezes.

“Locally this deal protects our two-year budget agreed on February 29, providing greater certainty for service users and staff than the one-year budget proposed by the opposition SNP group.”