Labour threaten council tax bill increase

During the election Labour claimed they would create additional bands at the top and bottom of the current council tax system.  This would lead to a revaluation of council tax which would mean huge increases in council tax bills.

During a debate in Parliament Dundee West MSP Joe Fitzpatrick asked Labour to explain how much bills would increase by.  Mr Fitzpatrick said  ‘‘The SNP Government is committed to scrapping the unfair council tax resulting in a fairer system based on the ability to pay.

"Labour are determined to hang on to the unfair council tax which would lead to a revaluation putting up council tax for 700,000 households by hundreds of pounds.

‘‘The silence from Labour today shows that when it comes to Local Government finance they are clueless as well as speechless.

‘‘Labour's plans to keep the council tax will mean inevitable increases for households across Scotland. In contrast the SNP's Local Income Tax will deliver a tax cut for hard pressed families across Scotland.

It’s time for Labour to realise what everyone else has, that we need a fairer system and that is the Local Income Tax. "

After the debate Joe Fitzpatrick revealed that in 2005 revaluation in Wales led to a third of homes being moved up at least one band. Only 8% of homes ended up saving any money.

If revaluation took place in Scotland 700,000 households would face large rises in their Council Tax, with those moving from band D to E paying on average £250 more, and those going from band D to F paying on average £500 more.