Local Income Tax a Winning Policy in Scottish Election

Speaking at a news conference in Aberdeen today [Monday], the leader of the Scottish National Party Mr Alex Salmond attacked Labour for their policy to retain the Council Tax, saying that it would inevitably require a revaluation that would see over 750,000 households in Scotland pay more.

He referred to poll figures showing that 71% of Scots support replacing Labour's Council Tax with a local income tax based on ability to pay.  In the North East of Scotland - which contains some of the highest Council Tax levels - the figure is 81%.

Mr Salmond said:

"The SNP's policy to abolish Labour's Council Tax is the big winner in the Scottish election campaign.

"Poll figures show that 71% of people in Scotland want to scrap the Council Tax in favour of a fair local income tax, and it is a massive 81% in the North East.

"Council Tax abolition will be centre stage in the SNP campaign.

"The SNP are setting out our plans to cut the overall burden of local taxation by £450 million - the biggest tax cut in a generation - which will benefit pensioners and middle Scotland.

"Over half a million pensioners will pay nothing under the SNP's local tax system.  A single pensioner will be on average £300 a year better off, while a pensioner couple will on average be £540 better off.  Taxpayers on low and middle incomes will on average benefit by between £260 and £350 a year.

"Labour's hated Council Tax is totally unfair, and will inevitably require a damaging revaluation.  Based on the pattern in Wales, over 750,000 Scottish households would pay MORE Council Tax purely as a result of revaluation.

"May 3 gives the people of Scotland the opportunity to scrap Labour's Council Tax in favour of a local tax based on ability to pay.  It's time for fair local tax with the SNP."

ENDS

Notes:

  • According to an independent analysis of the SNP's proposals by the Institute of Fiscal Studies (the IFS) ALL family types will on average be better off with the SNP's proposal.  Only the richest 10% in Scotland will on average pay more, but even here they will pay less than 1% more of their income.
  • YouGov poll figures

The Council Tax should be replaced by a local income tax, based on ability to pay:

Scotland

Agree: 71%
Disagree: 16%
Don't know: 13%

North East

Agree: 81%
Disagree: 8%
Don't know: 11%

YouGov poll commissioned by SNP, 27-30 March, sample: 1,064