Tom Griffin (London, OK):The Scottish Government's plans to replace council tax moved centre-stage in the Glenrothes by-election yesterday. On a visit to the Fife constituency, Chancellor Alistair Darling condemned the SNP's local income tax proposal as a "ridiculous idea."
In the past few days, SNP Ministers have announced significant changes to the policy, with councils being given the power to set their own income tax rate of up to 3p in the pound. This could prove crucial in winning the support of the Liberal Democrats, who have long called for a local income tax that is truly local. Without Liberal Democrat support, the SNP minority government stands little chance of getting its proposals through the Scottish Parliament.
The revamped proposals seem to have got a fair wind from Lib Dem blogger Stephen Glenn. If his colleagues at Holyrood feel similarly, council tax could yet be on the way out north of the border.
Stephen Glenn (not verified) said:
Wed, 2008-10-29 14:44Abdul it lifts the poorer payers of taxes out of the relative inequality that a property based tax like council tax does currently make. It is based on ability to pay.
With the proposal to look into investment income as well to be included yes it will affect the really high earners who often at the moment are so heavily exempt from paying tax anyway.
Having said that the SNP have seemed to be spreading an unclear message about the local authorities right to set the rate themselves. As since the weekend a government spokesperson has since seemed to return to their old approach of having it set centrally at Holyrood and turning it over to council's only in the medium term.