Scottish Political Parties' Policies.

We understand that the policies of the main Scottish political parties on local government funding in the run up to the Scottish Parliamentary election on 5th May 2011 are as follows:

In the short-term:

The Scottish National Party, Scottish Labour Party, Scottish Liberal Democratic Party, Scottish Conservative and Unionist Party (and possibly others) support the continuation of the Council Tax Freeze, at least for two more years. The Scottish National Party proposes to extend the Council Tax freeze for the full five-year duration of the next Scottish Parliament.

In the longer term:

• The Scottish National Party continues to favour an income-based tax. Local government taxation will be looked at in the context of discussions of wider taxation powers for the Scottish Government (Calman proposals). This means that the earliest date for the introduction of LIT will be in the Parliament after the next one.


• The Scottish Liberal Democratic Party continues to favour a locally-set income-based tax, and, like the SNP, envisages that the earliest date for the introduction of LIT will be in the Parliament after the next one. As a short-term measure, it proposes that over-65s with incomes of under £10,000 p.a. should be exempt from Council Tax.


• The All-Scotland Pensioners Party favours the replacement of Council Tax by a fairer local income tax based on ability to pay.


• The Scottish Labour Party continues to favour some form of property-based tax. The party has so far produced no alternative to Council Tax.


• The Scottish Conservative and Unionist Party wishes to retain Council Tax, with a £200 rebate for all pensioners, irrespective of their income.


• The Scottish Green Party favours a Land Value Tax.


• The Scottish Socialist Party and Solidarity favour a progressive, centrally-set income tax, ring-fenced for Council expenditure.

We are obviously disappointed that both the Scottish National Party and the Scottish Liberal Democratic Party have concluded that they cannot introduce Local Income Tax until the Parliament after next; but we note their view that LIT would be easier to introduce once wider taxation powers are devolved to Scotland under the Scotland Bill.