UK thwarts Scotland’s plan to scrap council tax

The UK government has decided against providing financial assistance to the
SNP administration’s plans to
replace the council tax with a local income tax.

The SNP had hoped to retain the current £400m a year which the Scottish
Government receives in council tax rebate from Westminster. However,
, UK work and pensions secretary, said there was no justification for
Westminster to fund the radical reform, The Scotsman reported.

It has been claimed a 3p local income tax rate would leave councils almost
£1bn short of the funds they currently take from council tax. The SNP had been
hoping the £400m Westminster rebate would help fill the gap.

A spokesman for the Scottish Government’s finance secretary, John Swinney,
said he hoped once Purnell read the consultation document on local income tax,
he would understand the issues.

Further reading:

Glasgow gets better council tax system

story in The Scotsman

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