Treasury accused of "bullying" over tax
2008-03-31
The Treasury was today accused of an "extraordinary" attempt to lay down the law in Scotland by questioning the cost of a local income tax.
Treasury chief secretary Yvette Cooper claimed the 3p local income tax envisaged by the Scottish Government would raise £750 million less than what is currently raised by the council tax.
But her intervention was criticised by the SNP, opposition parties and the Scottish Government.
SNP MSP for Dundee West, Joe FitzPatrick said:
“The Treasury has a reputation for bullying Whitehall departments but Scotland is not just another department.
“We have a Government, a Parliament and represent a country. It is not for the Treasury to dictate policy to Scotland. Yvette Cooper’s intervention is unprecedented and unacceptable.
“Scotland wants a fair system of local income tax and the Scottish Parliament has voted for a fair system of local income tax. The arrogance of the Treasury and the UK Labour government on this beggars belief.”
A spokesman for the Scottish Government added:
"This is an issue for the Scottish Government - it is not an issue for the Westminster government in any shape or form.
"What the Westminster Government should be doing is making clear they will not mount a cash grab of money from Scotland because we choose to exercise our devolved responsibilities.
"John Swinney will make it clear to the Chief Secretary to the Treasury that there can be no question of council tax benefit being removed from Scotland as Treasury documents show it comes within the Scottish block grant. He will also raise the issue of £120 million the Scottish Government should be receiving as a result of the Carter review of prisons spending in England.
"The Treasury's sabre-rattling behaviour in trying to lay down the law to Scotland is quite extraordinary."
Treasury chief secretary Yvette Cooper claimed the 3p local income tax envisaged by the Scottish Government would raise £750 million less than what is currently raised by the council tax.
But her intervention was criticised by the SNP, opposition parties and the Scottish Government.
SNP MSP for Dundee West, Joe FitzPatrick said:
“The Treasury has a reputation for bullying Whitehall departments but Scotland is not just another department.
“We have a Government, a Parliament and represent a country. It is not for the Treasury to dictate policy to Scotland. Yvette Cooper’s intervention is unprecedented and unacceptable.
“Scotland wants a fair system of local income tax and the Scottish Parliament has voted for a fair system of local income tax. The arrogance of the Treasury and the UK Labour government on this beggars belief.”
A spokesman for the Scottish Government added:
"This is an issue for the Scottish Government - it is not an issue for the Westminster government in any shape or form.
"What the Westminster Government should be doing is making clear they will not mount a cash grab of money from Scotland because we choose to exercise our devolved responsibilities.
"John Swinney will make it clear to the Chief Secretary to the Treasury that there can be no question of council tax benefit being removed from Scotland as Treasury documents show it comes within the Scottish block grant. He will also raise the issue of £120 million the Scottish Government should be receiving as a result of the Carter review of prisons spending in England.
"The Treasury's sabre-rattling behaviour in trying to lay down the law to Scotland is quite extraordinary."
