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Meeting of the Parliament 16 March 2011

16 Mar 2011 · S3 · Meeting of the Parliament

Item of business

Local Government Finance (Scotland) Amendment (No 2) Order 2011

FitzPatrick, Joe SNP Dundee West Watch on SPTV

I had intended to congratulate the Labour Party on doing one of the most fantastic U-turns to support the council tax freeze, but I am sorry—Labour members cannot support the council tax freeze while continuing to oppose it.

The argument in relation to people who live in lower-band properties is clear. The Finance Committee’s adviser made it clear that, although the saving from the council tax freeze is smaller for people in lower bands, it means much more to people who are on low incomes. Saving on average £300 in council tax might not matter to Michael McMahon, but it matters to my constituents.

I will raise another point that the Labour Party has failed to recognise. The SNP Government has continued the work to improve housing across Scotland. Often, that involves taking people out of lower-band houses and putting them in higher-band houses. People in Ardler in my constituency have been affected by that. The community of Ardler village resided originally in multistorey flats, which were all band A. In the main, those people now live in band C housing association houses. Their incomes did not change when they moved house, but their council tax shot up. Some of those folk feel that it is unfair that they must pay much more just because they have decent houses. That is why it is crucial that, ultimately, we get rid of the council tax. However, until we get rid of it, it is crucial that we freeze it at least, to take the pain out of the sting.

I have argued for the council tax freeze in the Finance Committee and in the chamber for the past four years. I was slightly upset that I had failed to persuade our Labour colleagues in that time. All of a sudden, however, Iain Gray has made a statement, but it is clear that he has not persuaded other Labour members. It is clear that the U-turn was about fear of punishment at the ballot box. Anyone who speaks to their constituents knows just how important the extra little bit of help from the SNP Government—in the form of the council tax freeze—has been. In my constituency, I have found on the doorsteps huge support for the freeze—from people in large and small houses.

For the past four years, the Labour Party has missed the point that the council tax freeze is about ensuring that people—in these challenging economic times when bills are increasing—do not have their challenges compounded by spiralling council tax bills. Members should remember that under the previous Administration double-digit increases were the norm. Bills were rocketing. In Dundee, Labour put up the council tax by 15 per cent in one year. Fifteen per cent! I say to Michael McMahon that people’s incomes did not rise by 15 per cent that year. The Labour Party did not care about those households—in band A, band B, band C, band D and band E—that had to find the extra money.

For the past four years, the SNP has stood by the people of Scotland by freezing the council tax in these trying times. The average household in my constituency would have had to pay an extra £150 this year if Labour had got away with stopping the council tax freeze in 2007. Year on year, such savings add up to more than £300, where—

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Meeting of the Parliament 16 March 2011

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