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Talks over scrapping council tax Talks over scrapping council tax
(about 19 hours later)
Talks have taken place between the Scottish Government and the Liberal Democrats over scrapping the council tax in favour of a local income tax.Talks have taken place between the Scottish Government and the Liberal Democrats over scrapping the council tax in favour of a local income tax.
The top level meeting, which took place at the Scottish Parliament on Thursday, has been described as "constructive".The top level meeting, which took place at the Scottish Parliament on Thursday, has been described as "constructive".
The SNP is committed to replacing the council tax with a local income tax set at 3p.The SNP is committed to replacing the council tax with a local income tax set at 3p.
Further detailed talks are expected to take place on Monday, ahead of the publication of a consultation document.Further detailed talks are expected to take place on Monday, ahead of the publication of a consultation document.
First Minister Alex Salmond and Finance Secretary John Swinney met Lib Dem leader Nicol Stephen and Lib Dem finance spokesman Tavish Scott.First Minister Alex Salmond and Finance Secretary John Swinney met Lib Dem leader Nicol Stephen and Lib Dem finance spokesman Tavish Scott.
Tax optionsTax options
It came just days after Mr Stephen challenged the first minister to enter into talks.It came just days after Mr Stephen challenged the first minister to enter into talks.
The Conservatives branded the talks a waste of time and called for reform of the council tax.The Conservatives branded the talks a waste of time and called for reform of the council tax.
Labour said the government's plans simply did not add up. Finance spokesman Derek Brownlee said: "All the effort that is going into talking about versions of local or national income tax hikes would be much better spent on reforming the council tax - that could be done in a matter of months, not years."
Labour local government spokesman Andy Kerr said: "The SNP and Lib Dems are like the two ends of a pantomime horse, each pulling in a different direction and neither knowing which way to go next."
The task is to turn overwhelming public support into a parliamentary majority John SwinneyFinance Secretary
Mr Kerr added: "The SNP cynically promised the Scottish electorate that they could deliver existing service levels on a 3p rate but Labour has consistently pointed out that their sums don't add up."
The SNP favour a centrally set local income tax, while the Lib Dems want it set at a local level.The SNP favour a centrally set local income tax, while the Lib Dems want it set at a local level.
Reports suggest a compromise may be being considered to propose a centrally set tax which could evolve to have responsibility passed to local authorities.Reports suggest a compromise may be being considered to propose a centrally set tax which could evolve to have responsibility passed to local authorities.
A spokesman for Mr Swinney indicated the two parties found much common ground.
He said: "The meeting was very constructive. It is clear that our agreement about the need to scrap the council tax in favour of a fair local income tax based on ability to pay far outweigh the differences.
"The Scottish Election Study last year showed that 88% of Scots favour a local income tax and only 12% back the discredited council tax.
"The task now is to turn that overwhelming public support into a parliamentary majority and the discussions with the Lib Dems are hopefully the beginning of that process."
A deal between the SNP and Lib Dems would still leave the government two votes short of a majority of 65 MSPs in the parliament.A deal between the SNP and Lib Dems would still leave the government two votes short of a majority of 65 MSPs in the parliament.
This could come from the Green Party, but they support a land value tax.This could come from the Green Party, but they support a land value tax.