Local Tax Replacement Report 'Unhelpful'

The Scotland Bill's offering Holyrood powers over local taxes

The leader of Fife council says he is disappointed that no alternative has been suggested to replace council tax.

It is after a cross party group of MSPs published a report suggesting local taxation as it is should end, without identifying what should follow it.

David Ross says the lack of an alternative is unhelpful, as they need to set their budget for next year:

Grahame Smith, Scottish Trades Union Congress (STUC) General Secretary said: "The STUC welcomes this important and impressive report. The original quantitative analysis and options for reform it presents should help inform better policy choices in the future.
 
"The STUC broadly agrees with the report’s recommendations noting in particular the Commission’s strong commitment to progressivity and its ‘predominant view’ that any reform to local tax ‘has to continue to include a recurrent tax on domestic property’. Whilst supporting the Commission’s view that the local tax base should be broadened the STUC is less enthusiastic about any replacement for the Council Tax ultimately involving a further tax on wages.
 
"Given the range and quality of evidence contained in the report, it will be extremely disappointing if any of Scotland’s political parties enter the 2016 elections on manifestos committing to retaining the Council Tax and the freeze which currently applies."

COSLA’s Finance Spokesman Councillor Keenan said:  "This is a solid base report that all sides should welcome first and consider second. 

"We welcome the fact that the report both recognises and emphasises that local government and local democracy should be empowered and enhanced through a truly local package of taxes.  For too long local democracy has been eroded by the current centralised system of taxation, particularly since the introduction of the council tax freeze in 2007.  

"If this report can redress the balance then the Commission will have achieved something substantial.

"As COSLA develops its full response we hope that this key message in the report will be listened to and acted upon on by Scottish Government and political parties as they develop their own responses."

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