Chamber
Plenary, 06 Dec 2006
06 Dec 2006 · S2 · Plenary
Item of business
Council Tax
I have very little time, although I would like to have a longer debate with Mr Swinney on this issue.
A local income tax would also damage our ability to recruit professionals, including doctors, to the national health service and academics to our universities. The SNP is obviously in retreat on the policy, given that Nicola Sturgeon started to talk about a cap on the level of the tax at the SNP conference. The SNP has failed to spell out to Parliament and the people of Scotland where it would find the £1 billion of public service cuts that would be needed to pay for such a cap. The SNP cannot be trusted on this.
Finally, I turn to Labour's position. To be clear, there are no circumstances in which the Labour Party will support the introduction of a local income tax. For the benefit of Mr Brownlee, I underline that we have no intention of introducing the local property tax that the Burt review proposes. I am sorry if Mr Brownlee was a bit confused on that. Labour believes that a property-based taxation system is a legitimate basis for raising resources. We recognise that there are many other ways of paying tax, including income tax. A property-based tax such as the council tax is easy to collect and hard to avoid. It provides a stable source of revenue and is supported by a benefits system that helps the less well off.
We believe that the council tax can be improved to ensure that those on the lowest bands do not pay a disproportionate amount and that we can do more to encourage the take-up of council tax benefit.
Finally, I suggest that we should consider introducing a rebate for pensioners on their water rates, which are paid by even the poorest pensioners. Even with the recent introduction of assistance towards water rates, the poorest households still pay 75 per cent of their water charges. Such a rebate could be either universal or targeted at the poorest pensioners.
The best way forward is to reform the council tax and to improve its fairness.
A local income tax would also damage our ability to recruit professionals, including doctors, to the national health service and academics to our universities. The SNP is obviously in retreat on the policy, given that Nicola Sturgeon started to talk about a cap on the level of the tax at the SNP conference. The SNP has failed to spell out to Parliament and the people of Scotland where it would find the £1 billion of public service cuts that would be needed to pay for such a cap. The SNP cannot be trusted on this.
Finally, I turn to Labour's position. To be clear, there are no circumstances in which the Labour Party will support the introduction of a local income tax. For the benefit of Mr Brownlee, I underline that we have no intention of introducing the local property tax that the Burt review proposes. I am sorry if Mr Brownlee was a bit confused on that. Labour believes that a property-based taxation system is a legitimate basis for raising resources. We recognise that there are many other ways of paying tax, including income tax. A property-based tax such as the council tax is easy to collect and hard to avoid. It provides a stable source of revenue and is supported by a benefits system that helps the less well off.
We believe that the council tax can be improved to ensure that those on the lowest bands do not pay a disproportionate amount and that we can do more to encourage the take-up of council tax benefit.
Finally, I suggest that we should consider introducing a rebate for pensioners on their water rates, which are paid by even the poorest pensioners. Even with the recent introduction of assistance towards water rates, the poorest households still pay 75 per cent of their water charges. Such a rebate could be either universal or targeted at the poorest pensioners.
The best way forward is to reform the council tax and to improve its fairness.
In the same item of business
The Deputy Presiding Officer (Murray Tosh):
Con
The next item of business is a debate on motion S2M-5258, in the name of Annabel Goldie, on council tax.
Derek Brownlee (South of Scotland) (Con):
Con
I hope that the Executive is as concerned for the plight of the council tax payer as it is for the Confederation of British Industry. Council tax in Scotland...
Alasdair Morgan (South of Scotland) (SNP):
SNP
Will the member give way?
Derek Brownlee:
Con
I would like to make progress.Today's debate could go one of two ways. It could either rapidly become an academic discussion on the various merits and proble...
Alasdair Morgan:
SNP
Is Mr Brownlee as surprised as the rest of us that, for the second Opposition finance debate in a row, no Labour minister has turned up to defend the Executi...
Derek Brownlee:
Con
I am no longer surprised by the actions of Labour ministers.There may be members who propose a local income tax to replace council tax and those who support ...
Tommy Sheridan (Glasgow) (Sol):
Sol
Will the member give way on that point?
Derek Brownlee:
Con
No. I want to make progress.Let us be honest: the Burt review was set up to provide cover for a division between the coalition parties. However, it is fair t...
Mr John Swinney (North Tayside) (SNP):
SNP
He is no publisher.
Derek Brownlee:
Con
Indeed he is not. He is even reluctant to grace us with his presence, but there we go.There was one occasion when Mr McCabe made it to Parliament and on whic...
The Deputy Minister for Finance, Public Service Reform and Parliamentary Business (George Lyon):
LD
Local taxation issues have long been among the most difficult on which to reach consensus and the most controversial. Even the far-reaching and highly regard...
Tommy Sheridan:
Sol
Will the minister take an intervention?
George Lyon:
LD
I do not have much time and I would like to make progress.The Burt report presents challenges to all political parties, but it also provides a useful platfor...
Tommy Sheridan:
Sol
The minister will be aware that the report cost the Scottish taxpayer more than £350,000. Was the First Minister speaking on behalf of the Executive or the L...
George Lyon:
LD
The matter is very important and the Burt committee has done serious work on it. It behoves all the parties, if they are interested in the future of local go...
Christine Grahame:
SNP
Will the minister give way?
George Lyon:
LD
I am sorry—I must make progress. The debate is so short that I do not have much time to accept interventions.Take-up rates are still too low and we support t...
Mr John Swinney (North Tayside) (SNP):
SNP
There are moments in this chamber when one imagines that one could be in a parallel universe because of some of the remarks that are made. In response to a p...
George Lyon:
LD
I hear what Mr Swinney says. However, does he accept that we need, until the system is changed, to try to maximise the amount of benefit that pensioners rece...
Mr Swinney:
SNP
Council tax has been in existence since 1994, but only 56 per cent of pensioners claim council tax benefit. At some stage, the Executive must conclude that t...
The Deputy Presiding Officer:
Con
I call Bristow Muldoon to open for the Labour Party. You have four minutes.
Bristow Muldoon (Livingston) (Lab):
Lab
The issue has been debated on many occasions in the past, and I have no doubt that it will be a major plank of next year's election campaign, with each party...
Derek Brownlee:
Con
Will the member take an intervention?
Bristow Muldoon:
Lab
I do not have time—I have only four minutes, I am afraid. The Tories' solution is a complete mirror image of the approach that Labour has been taking in gove...
Derek Brownlee:
Con
Will the member take an intervention?
Bristow Muldoon:
Lab
No. I have very little time.It is probably just as well that the issue that every single member in the chamber would agree on, including Annabel Goldie, is t...
Mr Swinney:
SNP
Will the member give way?
Bristow Muldoon:
Lab
I have very little time, although I would like to have a longer debate with Mr Swinney on this issue.A local income tax would also damage our ability to recr...
The Deputy Presiding Officer:
Con
We move to the open debate.
Mark Ballard (Lothians) (Green):
Green
I am grateful to the Tories for initiating a debate on the council tax. The need for a local government finance system that offers an alternative to the coun...