Lower-income families in the most expensive properties should be protected from any increase in council tax bills, say North Ayrshire Council.

Local authority chiefs and the Scottish Government have proposed increasing council tax levels for Band E to Band H properties.

A consultation on the idea was launched in July, and the council has now agreed on its response.

Mark Boyd, NAC's hed of finance, said: “North Ayrshire has 70,000 houses which attract council tax; around 55,000 homes or 79 per cent sit within band A to Band D and 14,750 (21 per cent) across Band E to H.

“Around 25 per cent of households in North Ayrshire currently receive support through the council tax reduction scheme and, should the proposals be implemented, this scheme could be expanded to recognise the additional burden faced by households across affected bands.

“It is important to recognise the additional financial burden that any increase would have on families.

"Access to the council tax reduction scheme would not be impacted by this change and would continue to offer means tested reductions of up to 100 per cent to those households who meet the eligibility criteria.”

This change would impact 21 per cent of properties. The annual increase would be £143 for a Band E property, rising to one of £800 for a Band H property.

The consultation also considers whether any proposed changes should be implemented immediately or phased in over two to three years, considered given the financial challenges faced by the council.

“The potential additional revenue generated was estimated at £2.743 million but it is recognised some authorities had a greater proportion of Band E to H properties than others,” Mr Boyd added.

He said that a “fair method of distribution” of funding would have to be considered should these proposals be implemented.

The authority's depute council leader Shaun Macaulay said: “It is important to highlight that this is a consultation response.

“Any decision on setting council tax is made at a full council budget meeting. This is not us saying now that we are going to increase tax by x amount or decrease it by x amount.”