News

March/April 2009: MSP Responses to SAACT Newsletter - Issue 10

SAACT Newsletters are sent to the 129 MSPs (among others), and we usually get some responses. We have had only four responses so far to Issue 10, perhaps because LIT is no longer in the limelight at present.

There were three responses from SNP, two directly from MSPs and one on behalf of First Minister Alex Salmond, and one from a New Labour MSP. The SNP responses stated that the SNP remained committed to the abolition of the unfair and discredited council tax. The decision not to progress with proposals for local income tax in this parliamentary term was made as Ministers acknowledged that in the light of the current political and economic climate they could not envisage securing parliamentary support for such a change at this time. They had, however, stated their intention to put forward detailed plans for a fairer local tax based on ability to pay in the run up to the next election, in light of the financial circumstances at that time. Whilst this delay was regrettable, it reflected the reality of governing with a parliamentary minority.

In response to the Newsletter's suggestion that the SNP Government should have considered going to the people of Scotland for a fresh mandate on this issue, one MSP pointed out that the resignation of the SNP Government would not necessarily have triggered an election at this time. He stated that the Labour Party would have 28 days to form a new administration.

We were also reminded that Ministers had announced their intention to fund a freeze on council tax for each of the years up to 2011-12. This would provide help for thousands of low and middle income families who had been denied substantial savings from the introduction of a local income tax.

We also had a response from one Labour MSP (who usually gives us a courteous response). He disagreed that LIT was a fair tax, and reiterated that New Labour would continue to work to reform the Council Tax.

Both Scottish New Labour and Conservatives keep saying that they are working on ways to make Council Tax fairer, but so far neither has come up with anything that (in SAACT's view) could be remotely regarded as fair. As far as we know, the last New Labour suggestion was that there should be additional Council Tax bands at the top and the bottom, and the last Conservative suggestion was that there should be a 50% reduction in Council Tax for pensioners only. Both proposals could, in our view, actually increase the unfairness of Council Tax, not diminish it.

11 Feb. 2009: John Swinney announced that he will not proceed with plans for LIT until after the next election.

18th June 2008: SAACT response to the Scottish Government's Consultation on Local Taxation 'A Fairer Local Tax for Scotland' submitted.

11th March2008: Scottish Government's consultation document "A Fairer Local Tax for Scotland" published. - Download printable pdf document here. For an on-line version, further information and response forms see the Related Links page of this website. The response deadline is 18th July 2008.

27th June 2007: John Swinney, the Scottish Cabinet Secretary for Finance and Sustainable Growth, informed the Local Government and Finance Committee that, in the autumn, the Government would publish a consultation document on the abolition of the council tax and the introduction of a local income tax. Following the consultation, draft legislation would be brought before the committee - probably not earlier than mid-2008. Further, the Scottish Government would negotiate with Councils about freezing Council Tax until a local income tax could be introduced. (For further details, see SAACT Newsletter Issue 7 of September 2007.)

21st June 2007: A pre-emptive attempt by the Conservatives and New Labour to scupper the replacement of Council Tax was defeated in the Scottish Parliament. Derek Brownlee (Conservative) moved: "That the Parliament does not support the introduction of a local income tax as a replacement for the council tax." Several amendments were put forward, and the following amendment by Tavish Scott (Liberal Democrat) was eventually carried: "That the Parliament believes that local income tax, which is based on ability to pay, is a fairer system of local taxation than the discredited and unfair council tax, and notes the position of the Green Party in regard to land value taxation." The voting was FOR: 64 (SNP 47, Liberal Democrat 16, Independent 1); AGAINST: 62 (Labour 46, Conservative 16); ABSTENTIONS: 2 (Green 2). This outcome essentially gives the government a green light to introduce a bill to scrap council tax in favour of a local income tax.

May 2007: The Scottish Parliamentary election on 3rd May 2007 resulted in the following number of seats for each party: Scottish National Party 47, Scottish Liberal Democrats 16, Scottish Green Party 2, Independent 1, Scottish New Labour Party 46, Scottish Conservative and Unionist Party 17. The SNP has formed a Minority government. That should mean that business is considered on an issue-by-issue basis.

The SNP, Lib Dems, Greens and the Independent are opposed to Council Tax. Collectively they have 66 seats - a majority in the 129-seat parliament. Another factor in the numbers game is that the Presiding Officer does not vote, and the new Presiding Officer is Alex Fergusson, who was elected as a Conservative MSP. There are of course other factors which can affect voting - illness, maternity leave, etc.

Nevertheless, it seems that the anti-Council Tax parties are now in a stronger position. We must encourage them to cooperate, and compromise on the less important aspects of their individual policies in order to consign the Neanderthal Council Tax to the dustbin of pre-history.

The Greens favour a Land Value Tax. But with only two MSPs, they must be aware that a Land Value Tax is a non-starter in the present parliament. The practical choice for present is between Council Tax and a fair income-based tax. We hope that the Greens will support an income-based tax.

We must also continue to persuade the New Labour and Conservative parties of the justice of our case, We know that, even before the election, many New Labour and Conservative MSPs were very worried about Council Tax, and they must surely realise that support for Council Tax has cost their party votes.

The Scottish Council elections - partly due to the introduction of proportional representation - have resulted in anti-Council Tax parties being in a stronger position in many Councils. We hope that Councils with an anti-Council Tax majority will put pressure on Parliament to treat the replacement of Council Tax by a fair tax as a matter of urgency.