SNP plans to make local income tax, er.., a bit local

By Mark Pack | Mon 27th October 2008 - 9:45 am

The Sunday Times had the story this weekend, though it’s safe to say that Labour don’t really like this idea:

The SNP is facing accusations that its flagship local income tax policy (LIT) is in chaos after it opened the door to Scotland’s 32 councils setting different rates…

In a dramatic U-turn on the policy, the Nationalist administration at Holyrood is now looking at allowing councils to vary the rate downwards and giving them the flexibility to set rates locally but also setting a cap at 3p…

Mr Kerr [Labour MSP] added: “The idea that to appease the Liberal Democrats we could have 32 different rates of income tax, one for each local authority, is madness.”…

Last night the Liberal Democrats welcomed the SNP’s shift in position. The party’s finance spokesman, Jeremy Purvis said: “They are moving in our direction. This is the first time the SNP have recognised that councils should be given discretion. However, we are waiting to see the details of the policy.”

Hat tip: Stephen Glenn

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3 Comments

Letters From A Tory 27th Oct '08 - 10:56am

So they are going to give local councils control over their council tax rates while imposing central control over local council tax rates?

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Stephen Glenn 27th Oct '08 - 2:03pm

Dear Letters, no they are moving away from idea of setting the rates centrally. Although they do still at present see it within their interests a cap being set centrally of no more than they currently deem fit. This is a hesitant first step to local accountability. While I see the argument for some need to control the effects rates may have on local residents. I fear that the arbitrary 3p cap is not the correct level under current spending expectations.
David Boothroyd 27th Oct '08 - 5:06pm

Is it certain that HMRC will allow each individual local authority to have different rates of income tax? There’s a lot of administration required for that (what if someone has homes in two different authorities? What if they move during the year?) and the Scottish Executive can hardly expect the UK taxpayer to pick up the bill for it.