Local Income tax : MSP queries cost of public consultation on dropped policy

13 February 2009

Marlyn Glen has tabled a question in the Scottish Parliament asking what has been the cost of the public consultation on Local Income Tax that the SNP Government held last year, a policy that they have now dropped.

Ms. Glen said ,

"I am sure that in a week that has seen the SNP ditch both Ministers and a major Manifesto promise, people in Dundee want to know the cost of this exercise in futility that would have been better spent on services in our city."

Speaking on the decision by the Scottish Government to drop its flagship policy, Ms. Glen said,

" In March I presented figures that showed that a 3p local income tax in Dundee would raise over £26 million less than council tax does.

"This would have led to tough choices over substantial cuts in public services and large rises in charges.

"Last July , I produced other data from the Institute of Public Finance showing that the SNP’s 3p local income tax would create a large shortfall in funding for services in Dundee,

"It would have needed to be almost doubled, to 5.9p in the £ to balance the books.

" Despite widescale opposition across Scotland, the SNP continued to portray local income tax as a painless remedy for financing local government services.

"Yesterday, however, realism broke through, and the SNP dropped local income tax."


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