Hansard

My amendment delivers the key points in the Greens’ amendment. This Government recognises the importance of local accountability and local democracy, and we agree to continue discussion on the reform of local taxation. However, crucially, we are inserting a key aim of embedding fairness and progressive taxation into those reforms. The Greens’ amendment does not mention progressive taxation, just to enjoy the support of the Tories—only long enough, of course, for the Tories to pull their support in a bid to halt an increase in council tax for higher-value properties, despite their own manifesto proposition. Opportunistic opposition might well be convenient, but the mature and responsible actions of a Parliament of minorities require the Opposition to provide not only a critique but principles on which we can all build. Surely fairness is one of those principles.

This Scottish statutory instrument is purely about the council tax multipliers in consideration of the proposal that won the support of the Local Government and Communities Committee. According to the Resolution Foundation, the proposal will see council tax become fairer and more proportionate. In its report from April, the Resolution Foundation stated that the policy

“would raise revenue in a progressive manner, with the tax rise falling harder on higher income households.”

It will see council tax bills increase for those who live in properties in bands E to H while protecting those on low incomes from any change and protecting the 75 per cent of taxpayers who live in bands A to D. Changing bands E to H will generate £100 million each year of additional revenues for local authorities, which is £100 million that local authorities would not otherwise receive. We will continue to engage with local government on distribution matters, and I have been clear that every penny raised in council tax will stay with the local authority.

I have also set out to the chamber and the Local Government and Communities Committee this Government’s commitment that the steps that we are taking today are simply the first on a journey of reform. These are the earliest changes that we can make to ensure that additional resources are available to councils from April.

Over this session of Parliament, we can work together to make local taxation fairer. Both the First Minister and I have put that on the record, and I gave that commitment to the committee. If the Parliament votes for our amendment tonight, that principle will be embedded in future reforms.

Next month, I will bring a budget to this chamber. I have already written to each party, asking for their proposals so that we can enter into a constructive discussion. We must be able to go into that discussion knowing that it will be based on positive engagement on all sides, on honouring commitments and on this Parliament embracing new powers. We all have a duty to show that we are beyond party-political games on such significant matters.

I move amendment S5M-02121.1.1, to leave out from “regrets” to “should be” and insert:

“recognises the importance of local accountability and autonomy in taxation, believes that reform should improve progressivity and fairness and calls for further consideration of the recommendations of the Commission on Local Tax Reform and”.