Chamber
Plenary, 08 Dec 2004
08 Dec 2004 · S2 · Plenary
Item of business
Local Government Finance Settlement
I have always known that SNP members are somewhat inward looking, but I was not aware until today that they have a problem with IT developments in our society. The Executive sees our approach as forward looking, adopting the best practices and procedures that we can adopt. Any computer can break down. As SNP members do not seem to be hooked into the IT revolution, perhaps it is left to the Executive parties to ensure that we continue our drive to follow that approach.
Mr Morgan made a number of points about council tax. Again, I know that SNP members are rather inward looking, but I did not realise until today that they had become such a centralising party. In case the SNP had not noticed, we do not dictate to councils up and down Scotland how they expend their finances. Of course, the Executive expects councils to be as prudent as they possibly can be in how they levy their local taxes. We have acknowledged that, under the 2005-06 settlement, there is perhaps a bit more scope for rises in council tax than we would ideally like, and we have spoken to our colleagues in councils and told them that we think that it is in their interests, and in the interests of the people they represent, to keep rises in 2005-06 as low as possible. We have also made it perfectly clear—and I referred in my statement to record levels of funding—that we do not think that there is any reason for council tax rises to go above 2.5 per cent in the years 2006-07 and 2007-08. If that happens, it will be a clear result of decisions taken by individual local authorities.
As I said in my statement, local authorities have expressed concern about the tightness of the settlement in its final year. I mentioned that I would expect the efficiencies from our efficient government initiative to have kicked in by then. I also say to local authorities that it is only because we introduced three-year budgeting, which allows them to plan ahead, that they have sight of the position in the third year. In years gone by, they would not have been able to make an assessment of that year. Now they can; now we can engage in a dialogue. We can hear their concerns and they can hear the views of the Scottish Executive.
Mr Morgan made a number of points about council tax. Again, I know that SNP members are rather inward looking, but I did not realise until today that they had become such a centralising party. In case the SNP had not noticed, we do not dictate to councils up and down Scotland how they expend their finances. Of course, the Executive expects councils to be as prudent as they possibly can be in how they levy their local taxes. We have acknowledged that, under the 2005-06 settlement, there is perhaps a bit more scope for rises in council tax than we would ideally like, and we have spoken to our colleagues in councils and told them that we think that it is in their interests, and in the interests of the people they represent, to keep rises in 2005-06 as low as possible. We have also made it perfectly clear—and I referred in my statement to record levels of funding—that we do not think that there is any reason for council tax rises to go above 2.5 per cent in the years 2006-07 and 2007-08. If that happens, it will be a clear result of decisions taken by individual local authorities.
As I said in my statement, local authorities have expressed concern about the tightness of the settlement in its final year. I mentioned that I would expect the efficiencies from our efficient government initiative to have kicked in by then. I also say to local authorities that it is only because we introduced three-year budgeting, which allows them to plan ahead, that they have sight of the position in the third year. In years gone by, they would not have been able to make an assessment of that year. Now they can; now we can engage in a dialogue. We can hear their concerns and they can hear the views of the Scottish Executive.
In the same item of business
The Deputy Presiding Officer (Murray Tosh):
Con
The next item is a ministerial statement on the local government finance settlement and non-domestic rate poundage. As is normal in these circumstances, the ...
The Minister for Finance and Public Service Reform (Mr Tom McCabe):
Lab
I offer an apology to the spokespersons of the Opposition parties for getting copies of the statement to them rather late. The Executive has experienced some...
The Deputy Presiding Officer:
Con
The minister will now take questions on the issues raised in his statement. I will allow around 40 minutes for questions.
Alasdair Morgan (South of Scotland) (SNP):
SNP
I thank the minister for what he said about the lateness of the statement. Clearly, the road to efficiency through the use of information technology systems ...
Mr McCabe:
Lab
I have always known that SNP members are somewhat inward looking, but I was not aware until today that they have a problem with IT developments in our societ...
Mr Brian Monteith (Mid Scotland and Fife) (Con):
Con
I, too, am obliged to the minister for the early copy of his statement. I trust that the technical problems did not delay his press briefing at lunch time, b...
Mr McCabe:
Lab
First, I refute the spurious allegation about a press briefing. I am sure that Mr Monteith will take the opportunity to withdraw that remark. There was no pr...
Mr Monteith:
Con
If the press briefing that I was led to believe was taking place at noon was cancelled, I apologise to the chamber for suggesting that it might have taken pl...
Mr McCabe:
Lab
I am obliged that Mr Monteith recognises that he did not check his facts before he came to the chamber. That is reflected in his remarks about the council ta...
Iain Smith (North East Fife) (LD):
LD
I welcome the minister's statement today. It reinforces the good news about what the Liberal Democrat-Labour Executive has done for local government over the...
Mary Scanlon (Highlands and Islands) (Con):
Con
Is this a question on the ministerial statement?
Iain Smith:
LD
It is. It is about the council tax increase.Does the minister also agree that it is strange that neither the SNP's nor the Conservatives' leading spokesmen h...
Mr McCabe:
Lab
I agree completely with my coalition colleague. That is a sound contribution. He correctly outlines the terrible things that happened during the Conservative...
The Deputy Presiding Officer:
Con
Order.
Mr McCabe:
Lab
Although the SNP claims to defend services, last week at First Minister's question time it demanded reductions in council tax levels. Mr Morgan's question sh...
The Deputy Presiding Officer:
Con
I encourage remaining members to put their questions on the content of the minister's statement and not to encourage him to repeat his earlier answers.
Dr Elaine Murray (Dumfries) (Lab):
Lab
I welcome much of what was in the statement, especially the consultation on the improvements in the small business rate relief scheme, the dropping of the 1k...
Mr McCabe:
Lab
I welcome the question. I ask Dumfries and Galloway Council to consider any intended increases against the backdrop of the allocations that it receives. It g...
Mark Ballard (Lothians) (Green):
Green
I, too, thank the minister for allowing us to have early sight of his statement.In his statement, the minister mentioned the potential for revaluation to res...
Mr McCabe:
Lab
I mentioned the transitional scheme that people will have the opportunity to take advantage of, which seeks to absorb shocks and to level out the impact of i...
Tommy Sheridan (Glasgow) (SSP):
SSP
I have four short questions for the minister. First, does he agree that the council tax remains an inherently unfair tax and is an unfair way in which to rai...
Mr McCabe:
Lab
I thank Mr Sheridan for those questions. We have instituted an independent review of local government finance and the review group will provide the Scottish ...
Bristow Muldoon (Livingston) (Lab):
Lab
I thank the minister for the statement and, in particular, for the Executive's continued strong support for local government funding over the next three-year...
Mr McCabe:
Lab
I confirm that we have fully funded the teachers' pay settlement and that we have made an allowance for pay in several other sectors and bodies that come und...
Stewart Stevenson (Banff and Buchan) (SNP):
SNP
The minister referred to efficiency savings and the need for councils to improve their council tax collection rates. Will he confirm that improved collection...
Mr McCabe:
Lab
I confirm that as a part of an overall efficient government drive, we would like increased council tax collection rates, but that is not necessarily containe...
Des McNulty (Clydebank and Milngavie) (Lab):
Lab
I welcome much that is in the statement, but the year 3 settlement will be extremely difficult for local government. Through the Finance Committee, I want to...
Mr McCabe:
Lab
I made it clear in the statement that through our dialogue with local government, we received its representations on its concerns about the third year of the...
Bruce Crawford (Mid Scotland and Fife) (SNP):
SNP
The minister will be aware that some councils predict that their fuel costs will rise by as much as 27 per cent as a result of electricity and gas supply cos...
Mr McCabe:
Lab
I am not sure whether Mr Crawford is advocating that we should get rid of councillors. We have always said that we will try to maintain the number of council...