SNP issues council tax challenge

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Full refuse binsImage source, PA
Image caption,

Council tax bills have been frozen in Scotland since 2007

The SNP has challenged opposition parties to set out proposals for local taxation after criticism of Nicola Sturgeon's reforms to council tax.

The first minister announced a proposal this week that the four highest council tax bands should pay more.

Scottish Labour dismissed the challenge from Local Government Minister Marco Biagi as "laughable" and the Scottish Conservatives said it was "rich".

The Lib Dems said the SNP had put off reforming council tax for nine years.

Under the SNP's plans, the average Band E household would pay around £2 more per week from April 2017, with those in the highest band paying an extra £10 a week - an average of £517 a year.

The council tax freeze will also end at the same point, with local authorities able to increase the charge by a maximum of 3% a year, potentially raising up to £70m for local services.

Sideline 'carping'

Ms Sturgeon confirmed there were no plans for a revaluation of the council tax, which remains based on 1991 property values.

Mr Biagi called on opposition party leaders to "ditch the posturing" and detail their plans in response to Ms Sturgeon's announcement.

He said: "Earlier this week, we set out plans to reform local taxation by making the council tax fairer, protecting low-income families and raising £100m for schools - but all the opposition parties have had to offer is tired rhetoric and a complete avoidance of any detail.

"If any of the opposition parties want to start being taken even remotely seriously, they need to be clear with people in Scotland what their own plans are - and accept that simply carping from the sidelines isn't going to cut it."

The minister added the SNP's reforms were "fair and progressive".

Council Tax Plans

A - D

No change for these tax bands

E - H

Will pay £2 to £10 more per week

  • £100m for education each year

  • 54,000 people on low incomes in bands E to H will be exempt

  • 3% increase in local taxes available to councils from 2017

A spokesman for Scottish Labour said: "This is laughable from a minister who has broken the central promise his party was elected on: to scrap the council tax.

"SNP Minister Marco Biagi should be embarrassed to promote this plan. The SNP promised to abolish council tax for a decade, but all they got rid of was the council tax freeze instead. We will outline our fairer plans in the coming weeks.

"Labour have set out more details of our plans on tax than any other party, including plans to ask those earning more than £150,000 to pay more in tax so we can invest in schools."

Scottish Conservative MSP Alex Johnstone said: "It's rich of the SNP to make demands like these, when its own council tax plans were a straight lift from Scottish Conservative-commissioned recommendations barely a month ago.

"And for a party which hasn't even said what it will do with income tax when the power comes to Holyrood, perhaps it should sort out its own house before criticising other people's."

Scottish Liberal Democrat leader Willie Rennie said: "The SNP have had nine years to put this policy in place but they missed the opportunity to invest in education and instead cut £500m from local authorities' budgets. Half of what councils do is education.

"Scottish Liberal Democrats will set out our proposals for local taxation in the run-up to May. They will be fair, progressive and give local democracy back to communities."

The Scottish Greens responded to the SNP's challenge by saying they would publish "bold" plans to replace the council tax in the coming weeks.

Local government spokesman Andy Wightman said: "The Scottish Greens have consistently argued that the local tax system must give councils the freedom to make their own choices on how they invest in public services, and the ability to raise the finance they need.

"We have already put forward clear proposals on taxing derelict and vacant land, and will set out our full, bold and progressive vision for local tax reform in the coming weeks."