Chamber
Plenary, 07 Feb 2007
07 Feb 2007 · S2 · Plenary
Item of business
Local Government Finance (Scotland) Order 2007
I cannot take an intervention from Mr Lyon, as I have only four minutes.
We must look at this financial settlement in the context of the Government's long-term record. When Labour came to power, local government received 36 per cent of total Scottish Office spending. By 2005-06 the figure had fallen to 31.8 per cent, despite the fact that burdens on local authorities had increased. Welcome as the recent increase in funding happens to be, the Government has loaded local authorities with more burdens but has reduced the share of the budget that they command. With the increase in burdens has come a 60 per cent increase in council tax since Labour came to power. The inevitable conclusion is that council tax payers have been punished by the Lib-Lab Executive through its underfunding of local authorities in Scotland.
We believe that council tax payers have suffered more than enough under the current Administration. For that reason, we have pledged that an SNP Administration would freeze the council tax in advance of the introduction of a local income tax. We propose to pay for the freeze by allowing local authorities to retain their efficiency savings, as the Government has allowed Government departments to do. We would continue with an efficient government programme, but we would allow local authorities to retain their contribution to efficient government in order that they could freeze council tax levels—in other words, we would enter into agreement with local authorities that they could retain their efficiency savings in return for freezing the council tax in Scotland.
The SNP has a vision of local government and central Government working together to deliver for the people of Scotland. We want councils to be partners in the delivery of high-quality public services that are democratically accountable to their communities, so a high priority of an SNP Administration would be to reduce the burgeoning quango state and to put more responsibility into the hands of locally elected members of local authorities. By that approach, we would simplify government in Scotland and make it more efficient. Into the bargain, we would start the process of rejuvenating local authorities and restoring local democratic control. Those measures would bring people closer to the local authorities and give people more say in what happens in their communities. Those aspirations are in tune with those of the people of Scotland. We look forward to taking them to the communities of Scotland.
We must look at this financial settlement in the context of the Government's long-term record. When Labour came to power, local government received 36 per cent of total Scottish Office spending. By 2005-06 the figure had fallen to 31.8 per cent, despite the fact that burdens on local authorities had increased. Welcome as the recent increase in funding happens to be, the Government has loaded local authorities with more burdens but has reduced the share of the budget that they command. With the increase in burdens has come a 60 per cent increase in council tax since Labour came to power. The inevitable conclusion is that council tax payers have been punished by the Lib-Lab Executive through its underfunding of local authorities in Scotland.
We believe that council tax payers have suffered more than enough under the current Administration. For that reason, we have pledged that an SNP Administration would freeze the council tax in advance of the introduction of a local income tax. We propose to pay for the freeze by allowing local authorities to retain their efficiency savings, as the Government has allowed Government departments to do. We would continue with an efficient government programme, but we would allow local authorities to retain their contribution to efficient government in order that they could freeze council tax levels—in other words, we would enter into agreement with local authorities that they could retain their efficiency savings in return for freezing the council tax in Scotland.
The SNP has a vision of local government and central Government working together to deliver for the people of Scotland. We want councils to be partners in the delivery of high-quality public services that are democratically accountable to their communities, so a high priority of an SNP Administration would be to reduce the burgeoning quango state and to put more responsibility into the hands of locally elected members of local authorities. By that approach, we would simplify government in Scotland and make it more efficient. Into the bargain, we would start the process of rejuvenating local authorities and restoring local democratic control. Those measures would bring people closer to the local authorities and give people more say in what happens in their communities. Those aspirations are in tune with those of the people of Scotland. We look forward to taking them to the communities of Scotland.
In the same item of business
The Deputy Presiding Officer (Murray Tosh):
Con
The next item of business is a debate on motion S2M-5503, in the name of Tom McCabe, that the Local Government Finance (Scotland) Order 2007 be approved.
The Minister for Finance and Public Service Reform (Mr Tom McCabe):
Lab
The motion seeks approval of the Local Government Finance (Scotland) Order 2007. As members know, the main purpose of that order is to provide next year's re...
Alasdair Morgan (South of Scotland) (SNP):
SNP
By praising the council tax freeze in Glasgow, the minister seems to be implying that the current council tax levels have been set too high. Can he explain t...
Mr McCabe:
Lab
I am a very difficult person to please, but I am conscious of the need for local democracy. What Mr Morgan says is entirely consistent with statements that t...
Mr John Swinney (North Tayside) (SNP):
SNP
Will the minister give way?
The Deputy Presiding Officer:
Con
The minister is over time, so he cannot give way.
Mr McCabe:
Lab
In conclusion, as I have explained, the order will distribute substantial additional resources for this year and next. A great deal of progress has been made...
Derek Brownlee (South of Scotland) (Con):
Con
As the minister alluded to, the timing of today's debate is apt given the imminence of the formal setting of council tax levels throughout Scotland. I state ...
Mr McCabe:
Lab
As I pointed out in my speech, today's finance settlement is not about this being an election year. Last year, we had the lowest average council tax increase...
Derek Brownlee:
Con
As I said, people are not daft—they know that the lower council tax increase that might be announced this year might last only for one year, as has been the ...
Mike Rumbles (West Aberdeenshire and Kincardine) (LD):
LD
Were there never such arguments under the Tories?
Derek Brownlee:
Con
I will not rise to the bait that Mr Rumbles has offered.Whatever their political affiliation, all members would agree that we should have a strong tier of lo...
The Deputy Minister for Finance, Public Service Reform and Parliamentary Business (George Lyon):
LD
How does the member explain his position, given that when they were in Government, the Tories used capping to ensure that that did not happen?
Derek Brownlee:
Con
In 1996, I was at university rather than in Government. Mr Lyon might notice that some things have changed. If he is so against capping, perhaps he will rule...
Mr John Swinney (North Tayside) (SNP):
SNP
Over the past two years, the debate on local government has been helpfully informed by the reports of Parliament's Finance Committee on the overall Scottish ...
Mr McCabe:
Lab
I know that Mr Salmond is in the habit of making things up as he goes along in television studios, but I did not know that that habit is contagious. The coun...
Mr Swinney:
SNP
If Mr McCabe does not believe that council tax is a significant burden on the electors of Scotland, he should reflect on the fact that the tax has increased ...
George Lyon rose—
LD
Mr Swinney:
SNP
I cannot take an intervention from Mr Lyon, as I have only four minutes.We must look at this financial settlement in the context of the Government's long-ter...
Mike Rumbles (West Aberdeenshire and Kincardine) (LD):
LD
The SNP might want to freeze council tax for the next two years; the Liberal Democrats want to get rid of it.There can be no doubt that the 4.7 per cent incr...
Bristow Muldoon (Livingston) (Lab):
Lab
Is the implication of Mr Rumbles's speech about the population allocation of resources an argument that no account should be taken of deprivation?
Mike Rumbles:
LD
I wish that the member had waited just a little longer—I was about to say that no one argues that councils should be allocated funds simply on the basis of t...
Bristow Muldoon (Livingston) (Lab):
Lab
First and foremost, the Local Government Finance (Scotland) Order 2007 that we are being asked to agree sets out a local government settlement that will cont...
John Swinburne (Central Scotland) (SSCUP):
SSCUP
Will the member give way?
Bristow Muldoon:
Lab
I want to continue, if I may.Roads and paths are being better maintained, and the level of household recycling has improved substantially. All those and othe...
Derek Brownlee:
Con
Will the member give way?
Bristow Muldoon:
Lab
No, I have only four minutes.Of course, all those achievements would be put at risk under the nightmare scenario of an SNP-led Executive emerging from this y...
Mike Rumbles:
LD
Will the member give way?
Bristow Muldoon:
Lab
No. I have only 30 seconds left.Nicola Sturgeon was not bold enough to state a figure at the conference, although The Herald reported that her spin doctors h...
Brian Adam (Aberdeen North) (SNP):
SNP
I am happy to confirm to Bristow Muldoon that the maximum for any local income tax under the SNP will be 3p in the pound. I am delighted to see that Bristow ...