Chamber
Plenary, 01 Feb 2006
01 Feb 2006 · S2 · Plenary
Item of business
Council Tax Abolition and Service Tax Introduction (Scotland) Bill: Stage 1
The SNP has supported the abolition of the council tax for a considerable time, and we produced a paper on the introduction of a local income tax. The SNP wants to replace this discredited Executive and legislate to introduce a local income tax. That is how we will deliver the abolition of the council tax.
We need to rectify the injustice of the council tax by establishing a system that is based on the ability to pay. The benefits of a local income tax are clear. Pensioners and people who are on low incomes would be spared the burden and complexity of the council tax and relief systems. We estimate that 500,000 pensioners would have to pay no local income tax under our proposal.
The second principle of our approach—and our major concern with the bill—is that a local income tax should be exactly what it says it is: local. It should put local communities in charge of their revenue and business. At a time when politics is viewed as distant from communities, the last thing that we need to do is to create more distance between the public and the decision-making process. Under the bill, the local tax would be set directly by national Government, and ministers, who I believe profoundly are depriving local authorities of their fair share of resources, would be given even greater control over local authority finance and services. The Minister for Finance and Public Service Reform and the Deputy Minister for Finance, Public Service Reform and Parliamentary Business would be given absolute control over how much money local authorities would get. They would have an annual opportunity to squeeze local authorities even harder than they are being squeezed today.
We need to rectify the injustice of the council tax by establishing a system that is based on the ability to pay. The benefits of a local income tax are clear. Pensioners and people who are on low incomes would be spared the burden and complexity of the council tax and relief systems. We estimate that 500,000 pensioners would have to pay no local income tax under our proposal.
The second principle of our approach—and our major concern with the bill—is that a local income tax should be exactly what it says it is: local. It should put local communities in charge of their revenue and business. At a time when politics is viewed as distant from communities, the last thing that we need to do is to create more distance between the public and the decision-making process. Under the bill, the local tax would be set directly by national Government, and ministers, who I believe profoundly are depriving local authorities of their fair share of resources, would be given even greater control over local authority finance and services. The Minister for Finance and Public Service Reform and the Deputy Minister for Finance, Public Service Reform and Parliamentary Business would be given absolute control over how much money local authorities would get. They would have an annual opportunity to squeeze local authorities even harder than they are being squeezed today.
In the same item of business
The Deputy Presiding Officer:
Con
The next item of business is a debate on motion S2M-3893, in the name of Tommy Sheridan, on the general principles of the Council Tax Abolition and Service T...
Tommy Sheridan (Glasgow) (SSP):
SSP
Today's debate is about right and wrong, justice and injustice and the unacceptable twin scars of poverty and inequality, which continue to shame our country...
The Deputy Minister for Finance, Public Service Reform and Parliamentary Business (George Lyon):
LD
I thank the Local Government and Transport Committee for all its hard work in examining Tommy Sheridan's proposal to abolish the council tax and replace it w...
Frances Curran (West of Scotland) (SSP):
SSP
Will the member take an intervention?
George Lyon:
LD
I will make some progress, if the member does not mind.The committee's findings have exposed the fact that the bill represents the greatest gamble since Char...
Mr John Swinney (North Tayside) (SNP):
SNP
Does Mr Lyon accept that, if the service tax was introduced and a national rate of taxation for local authorities was to be set, that would give ministers su...
George Lyon:
LD
I thank Mr Swinney for that intervention, which highlights why we oppose the bill. The taxation level would be decided in the Parliament instead of at the lo...
Mr John Swinney (North Tayside) (SNP):
SNP
The debate is about a two-part proposal. The first is the abolition of the council tax and the second is its replacement with a Scottish service tax. I will ...
Mike Rumbles (West Aberdeenshire and Kincardine) (LD):
LD
For the sake of the debate, will the member tell us how much additional money the SNP believes the Scottish Executive should give to the local authorities?
Mr Swinney:
SNP
It is obvious that Mr Rumbles was not present on 12 January when, to many complaints from Labour members, I spoke for 18 minutes and gave an extensive explan...
Mike Rumbles:
LD
Will the member just tell us?
Mr Swinney:
SNP
I am just getting to it. I was going to give a long explanation so that Mr Rumbles would get a flavour of the excellence of that speech, in which I said that...
Mike Rumbles:
LD
Where would the money come from?
Mr Swinney:
SNP
The member should know that it is more courteous to get up to intervene than it is to shout from the back benches. Of course, his Liberal colleagues on the f...
Mike Rumbles:
LD
Ah. It is coming from nowhere.
Mr Swinney:
SNP
If Mr Rumbles is sceptical about that point, I suggest that he speak to the Liberal Democrat administration in Aberdeenshire, which has made relatively simil...
Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD):
LD
Will the member take an intervention?
Mr Swinney:
SNP
We have heard enough from the Liberals today. We finished off Mr Purvis the last time and we would do it again in a moment.We believe that the council tax is...
Carolyn Leckie (Central Scotland) (SSP):
SSP
For how long has it been Scottish National Party policy to support the abolition of the council tax? Where is the SNP's bill to abolish it?
Mr Swinney:
SNP
The SNP has supported the abolition of the council tax for a considerable time, and we produced a paper on the introduction of a local income tax. The SNP wa...
Iain Smith (North East Fife) (LD) rose—
LD
The Deputy Presiding Officer:
Con
Mr Swinney is in his last minute.
Mr Swinney:
SNP
Who would suffer if this Administration was able to exert even more control over local authority finance? The usual people would suffer: children with specia...
Mr David Davidson (North East Scotland) (Con):
Con
I congratulate the Local Government and Transport Committee on its conclusion, which it reached as a result of some excellent evidence sessions, and I thank ...
Bristow Muldoon (Livingston) (Lab):
Lab
I want to make one point in response to Tommy Sheridan's speech. I asked before how much people on £25,000 would pay in Scottish service tax. Tommy Sheridan ...
Frances Curran:
SSP
How much does the member get?
Bristow Muldoon:
Lab
Exactly the same as other members do. The Council Tax Abolition and Service Tax Introduction (Scotland) Bill is the most ill-considered and poorly researched...
Frances Curran:
SSP
Will Bristow Muldoon give way?
Bristow Muldoon:
Lab
Not just now. I want to make some progress.
Frances Curran:
SSP
Come on. He should give way.