Local Taxation
Thu., April 17, 2008. 17:52.
Parliament backs Green principles.
At Decision Time today, the Scottish Parliament endorsed the Green Party's text on the future of local funding. (1) MSPs today made three decisions. First, they accepted that the current system of Council Tax is flawed, and must be changed urgently. Second, they noted the wide range of alternatives being discussed, including Land Value Tax, the Greens' preferred option, as well as both flavours of local income tax and a reformed Council Tax.
Finally, and most importantly, Parliament agreed a broad set of Green principles against which any future proposals must be judged, as follows: fairness, local accountability, the need to reduce tax avoidance and the wider social, economic and environmental impact of any proposed system of local tax reform on communities across Scotland.
Patrick Harvie MSP said:
"This is a landmark day in the long and troubled history of Scottish local taxation. For the first time, politicians have risen above the bickering and chest-pounding to agree a set of principles that should underpin local funding. These are good principles, Green principles, including local accountability and fairness, as well as social, economic and environmental considerations.
"Today's vote lays down the gauntlet to all parties. The SNP will struggle to persuade Parliament that their national salary tax is fair or locally accountable. Labour and the Tories must now recognise the consensus for change, and come back with something new, not just the same old failed Council Tax.
"For our part we will aim to spell out in more detail what the advantages of a Land Value Tax would be, and how it would work to fund local services, boost sustainable economic development, stabilise property prices, and make life a lot fairer for those who currently struggle to pay Council Tax.
"But one thing is clear - as of today, the status quo is no longer an option."
Notes
1. The Green amendment, which replaced the whole text of the Labour motion, passed by 65 votes to 61 with no abstentions. The final motion as passed (by 65 votes to 62) was therefore as follows:
That the Parliament notes the Scottish Government’s consultation on the future of local taxation; recognises that this consultation is not due to close until 18 July 2008; notes the wider range of possible options, including local income tax, land value tax, property tax and reform of the council tax; recognises that the existing system of local government taxation is discredited, bureaucratic and unpopular; agrees on the urgent need for substantial changes to the system of local taxation, and agrees that, in developing this future system, due consideration should be given to fairness, local accountability, the need to reduce tax avoidance and the wider social, economic and environmental impact of any proposed system of local tax reform on communities across Scotland.
Contact the Scottish Greens' press team on 07909 933 074.