We have reformed reforms the present Council Tax system to make it fairer, while protecting people on less than the median income.
The cross-party Commission on Local Tax Reform recommended that any reform of local tax should still include some form of property tax.
We have plans for longer term measures that will profoundly change the way local services are funded. We’ll consult with Local Government on exchanging a proportion of general revenue grant (the funding the Scottish Government provides to councils) for the assignment of a proportion of income tax receipts, which will be distributed to individual councils by existing needs based formula. This would allow Local Government to benefit directly from economic growth, reduce the dependence of councils on Central Government grants, while making taxation to fund local services as a whole progressive.