SNP bids for a majority on local income tax

28 October 2008

Subjects:

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.

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Comments

James Mackenzie (not verified)

28 October 2008 - 6:24pm

The difficulty with this is that you need 65 votes to make the change, and even the SNP and the Liberals only make 63.

With Labour and the Tories more or less sticking to Council Tax, the only other place those extra votes can come from would be us Greens. However, we don't back either the current Local Income Tax proposals or Council Tax, preferring Land Value Tax, like many Liberals and others.

Some hard negotiations are on the cards..

Abdul-Rahim (not verified)

29 October 2008 - 11:42am

At first glance the proposal seems to be good for workers, but if Darling is correct, it will put a further burden on tax-payers. It seems difficult to see who is right, but either way Labour should back what is best for workers, even New Labour.

Stephen Glenn (not verified)

29 October 2008 - 2:44pm

Abdul 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.