Hamilton MSP's concern over local income tax plan

Mar 27 2008

TOM McCabe this week spelt out what he believes will be the “true cost” of the SNP’s local income tax plan.

The Hamilton MSP said independent analysts had concluded that Income Tax would have to rise by 5p in the pound to generate enough cash to cover local government services.

He was hitting back at SNP MSPs who insist the abolition of council tax will leave most voters better off.

Finance Minister John Swinney earlier this month launched a consultation into the local income tax proposals. It is due to last until July 18.

Mr McCabe said it had taken the SNP 10 months to release the blueprint for their flagship policy.

He added, however, that the document “lacked significant information”.

Figures quoted by SNP candidates in the run up to last year’s election were “noticeably absent”.

Mr McCabe said the proposed three per cent Income Tax rise would leave a huge hole in funding for council services. “Independent analysis has shown that income tax would have to rise by 5p in the pound to generate enough money for these services,” he added.

Mr McCabe said without further data about the proposals, it would be impossible to say who would be the “winners and losers” from the introduction of a local income tax.

“That makes the consultation process fundamentally flawed,” said the Hamilton MSP.

“What we do know is that the richest people in society will pay nothing, and that is anything but fair.

“I am genuinely concerned by the effect such a tax rise will have on hardworking families in Hamilton, Blantyre and Burnbank, especially those with working children still at home. Students with part-time jobs, and working people who share flats or houses, also stand to lose out.”

South of Scotland SNP MSP Aileen Campbell last week told the Advertiser polls had shown that 88 per cent of people wanted to see council tax axed.

To take part in the consultation e-mail afairerlocaltax@scotland.gsi.gov.uk or call 0131 244 7011.

TOM McCABE

AILEEN CAMPBELL