Local Income Tax

Question Time — Scottish Executive — General Questions – in the Scottish Parliament at 11:40 am on 27 March 2008.

Alert me about debates like this

Photo of James Kelly James Kelly Labour 11:40, 27 March 2008

To ask the Scottish Executive what research was undertaken prior to publication of its local income tax plans. (S3O-2819)

Photo of John Swinney John Swinney Scottish National Party

In preparing the consultation paper on a fairer local tax for Scotland, we drew on a range of existing research, analysis and information, in addition to work that we undertook internally, which included detailed financial modelling of the proposals. The 2007 Scottish social attitudes survey, for example, found that 83 per cent of the people questioned said that they should be taxed according to how much income they had.

Photo of James Kelly James Kelly Labour

The cabinet secretary will be aware that official Scottish Government statistics show that 265,198 people aged between 20 and 34 still stay with their parents and that most of them will have to pay the new local income tax. Does he agree that that will be a double whammy, which will hinder many young people who are trying to get on the housing ladder?

Photo of John Swinney John Swinney Scottish National Party

People will realise that the local income tax is a fair system that is based on the ability to pay. The Government has published information on a variety of social groupings that demonstrates how people will be better off. For example, 59 per cent of people who live in households comprising multiple taxpayers—the group to which Mr Kelly referred—will pay less, and there will be no change for at least 11 per cent of them. The evidence on the advantages of having a local income tax is pretty compelling.

The Labour Party's contribution to the debate would have slightly more credibility if in the four years following 2003, when it made a promise to do something to improve the fairness of the council tax, it had lifted a finger. It failed to do anything and, as Labour members all know, the council tax became such an issue in last year's election campaign that it resulted in the Labour Party's defeat.

This Government has made proposals to introduce fairness into the local taxation system and, in due course, I look forward to their receiving enthusiastic support from members such as Mr McNeil, who seems to be particularly cheery about the issue today.