Chamber
Meeting of the Parliament 15 March 2012
15 Mar 2012 · S4 · Meeting of the Parliament
Item of business
Local Government Finance (Scotland) Amendment Order 2012 [Draft]
The Local Government Finance (Scotland) Amendment Order 2012 acts as an amending instrument to the Local Government Finance (Scotland) Order 2012, which was debated in the chamber last month. The minister will recall that when the order was debated the Scottish Conservatives disagreed with several aspects of it, including the regressive £95 million retail levy tax and the overly optimistic business rate incentivisation targets.
However, the Government seeks approval today for the amendment order, which sets out the distribution of incentive compensation that is to be paid to councils in return for their submitting to the full package of resource allocations and conditions that is laid out in the relevant finance circular.
In practical terms, the amendment order distributes the £70 million council-tax-freeze incentive among the local authorities that have given written declarations that they intend to freeze council tax rates, as required by the Scottish Government. As the minister set out, the order also independently allocates across local authorities the initial funding of £10 million for the teachers induction scheme.
As I stated when we debated the Local Government Finance (Scotland) Order 2012 in February, the Scottish Conservatives support the council tax freeze for the forthcoming financial year of 2012-13, and that has not changed. I will set out why we support the council tax freeze and the order. The Scottish Conservatives believe in lower taxes and we want to reduce the taxation burden on Scottish families. We supported the freeze throughout the previous session of Parliament, and a freeze for 2012-13 was a commitment in our manifesto last year. Incidentally, it is interesting that councils in England have begun to implement council tax freezes.
Ultimately, the freeze supports hard-working Scottish families and helps their money to go a little further. I welcome the additional funding for local authorities and I hope that it will be put to good use in providing high-quality services for local communities. The Scottish Conservatives support the council tax freeze for the forthcoming financial year and we are heartened that all councils will receive additional funding.
16:47
However, the Government seeks approval today for the amendment order, which sets out the distribution of incentive compensation that is to be paid to councils in return for their submitting to the full package of resource allocations and conditions that is laid out in the relevant finance circular.
In practical terms, the amendment order distributes the £70 million council-tax-freeze incentive among the local authorities that have given written declarations that they intend to freeze council tax rates, as required by the Scottish Government. As the minister set out, the order also independently allocates across local authorities the initial funding of £10 million for the teachers induction scheme.
As I stated when we debated the Local Government Finance (Scotland) Order 2012 in February, the Scottish Conservatives support the council tax freeze for the forthcoming financial year of 2012-13, and that has not changed. I will set out why we support the council tax freeze and the order. The Scottish Conservatives believe in lower taxes and we want to reduce the taxation burden on Scottish families. We supported the freeze throughout the previous session of Parliament, and a freeze for 2012-13 was a commitment in our manifesto last year. Incidentally, it is interesting that councils in England have begun to implement council tax freezes.
Ultimately, the freeze supports hard-working Scottish families and helps their money to go a little further. I welcome the additional funding for local authorities and I hope that it will be put to good use in providing high-quality services for local communities. The Scottish Conservatives support the council tax freeze for the forthcoming financial year and we are heartened that all councils will receive additional funding.
16:47
In the same item of business
The Presiding Officer (Tricia Marwick)
NPA
The next item of business is a debate on motion S4M-02336, in the name of Derek Mackay, on the draft Local Government Finance (Scotland) Amendment Order 2012...
The Minister for Local Government and Planning (Derek Mackay)
SNP
On 9 February, Parliament approved the Local Government Finance (Scotland) Order 2012, which enables Scotland’s local authorities to set their revenue budget...
James Kelly (Rutherglen) (Lab)
Lab
I note that one of the commitments was about police officer numbers. Does the minister accept that although that commitment might have been delivered, as we ...
Derek Mackay
SNP
The budget that the Scottish Government has delivered includes money for diversionary measures in our communities, enhanced community safety, a more efficien...
James Kelly (Rutherglen) (Lab)
Lab
Let me make it clear from the outset that the Labour Party will support the amendment order at 5 o’clock. We have to accept that council leaders have been pu...
Kevin Stewart (Aberdeen Central) (SNP)
SNP
Will the member give way?
James Kelly
Lab
Not for the moment.
Kevin Stewart
SNP
I did not think that he would.
James Kelly
Lab
I would be happy to take an intervention once I have developed my argument.I want to explain a few home truths about the settlement and the SNP’s attitude to...
Kevin Stewart
SNP
Will the member give way?
James Kelly
Lab
Not for the moment.The £70 million has not increased in the five years since the SNP came to power, so inflation has not been taken into account. Moreover, a...
Joe FitzPatrick (Dundee City West) (SNP)
SNP
Will the member give way?
James Kelly
Lab
Let me finish this point. On the agreement on police officer numbers, the SNP is playing a numbers game in which, while the numbers are being maintained, the...
Joe FitzPatrick
SNP
I am very pleased that crime is at a 35-year low and that the streets of Dundee are the safest that they have been in decades.Mr Kelly referred to strings be...
James Kelly
Lab
In relation to the impact on front-line services, 89 per cent of the cuts in the current budget have been passed to local government: £658 million of the tot...
Kevin Stewart
SNP
Will Mr Kelly give way?
James Kelly
Lab
Let me finish my point.That point was reinforced only this morning in a report by the Accounts Commission, which drew attention to the fact that, based on th...
The Presiding Officer
NPA
Mr Kelly, I cannot give you additional time for taking interventions.
Kevin Stewart
SNP
I thank Mr Kelly for giving away—rather, giving way and giving away nothing, come to think of it.Why have Labour leaders of councils across the country accep...
James Kelly
Lab
Mr Stewart must look at the practical effects of the SNP budget on the ground. We saw in statistics that were published only yesterday that there have been 6...
Joe FitzPatrick
SNP
Will the member give way?
James Kelly
Lab
I have already given way to Mr FitzPatrick.The reality of the budget cuts is that bus services are being cut and pensioners are not able to get out and reach...
The Presiding Officer
NPA
Can we settle down, please?
James Kelly
Lab
They are getting a bit excited, Presiding Officer.We are moving towards the local elections campaign and the single-issue campaigners on the SNP benches will...
The Presiding Officer
NPA
You need to wind up, Mr Kelly.
James Kelly
Lab
We look forward to the elections and to building hope and defending jobs and services.16:43
Margaret Mitchell (Central Scotland) (Con)
Con
The Local Government Finance (Scotland) Amendment Order 2012 acts as an amending instrument to the Local Government Finance (Scotland) Order 2012, which was ...
Joe FitzPatrick (Dundee City West) (SNP)
SNP
The settlement is good news for Scotland’s local authorities. It completes the funding for the delivery of vital services that the people of Scotland deserve...
James Kelly
Lab
Does Mr FitzPatrick accept that his Government has doubled the cut from Westminster in the cut that it has passed on to local councils? I repeat that there a...
Joe FitzPatrick
SNP
No, I do not accept that—Mr Kelly is wrong. Just about every member of the Parliament agrees that health spending should be protected, although there is deba...