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Scottish government to outline council tax reform plans Scottish government to outline council tax reform plans
(about 9 hours later)
The Scottish government is set to outline its proposals for reforming the council tax system. The Scottish government is to outline its proposals for reforming the council tax system.
First Minister Nicola Sturgeon said her party would make local taxes more "progressive" from April 2017 if voted back to power in May. First Minister Nicola Sturgeon said her party would make local taxes more "progressive" from April 2017 if the SNP was voted back into power in May.
An independent commission reported in December last year that the current system was in need of reform. An independent commission reported in December that the current system was in need of reform.
At the moment, Scotland's 32 councils will typically raise 15p of every pound it spends from council tax. At the moment, Scotland's 32 councils typically raise 15p of every pound they spend from council tax.
The cross-party Commission on Local Tax Reform concluded that any new system should continue to be one of "general tax" rather than a "system of charges for specific services".The cross-party Commission on Local Tax Reform concluded that any new system should continue to be one of "general tax" rather than a "system of charges for specific services".
It suggested three options which could bring the £2bn the council tax - which has been frozen for the last nine years - currently brings in; It suggested three options:
Ms Sturgeon, who will make public her approach later, is also expected to propose incentives for councils to boost economic growth by assigning them a share of income-tax revenues. Ms Sturgeon, who will make public her approach later, is also expected to propose incentives for councils to boost economic growth by assigning them a share of income tax revenues.
She said: "Over nine years, the council-tax freeze put in place by this government has helped to keep bills affordable during difficult economic times while ensuring councils are properly funded to provide public services. She said: "Over nine years, the council tax freeze put in place by this government has helped to keep bills affordable during difficult economic times while ensuring councils are properly funded to provide public services.
"When I established the cross-party Commission on Local Tax Reform in 2015, I wanted to ensure that our commitment to fully understand the impact of taxation on Scottish communities was fulfilled.""When I established the cross-party Commission on Local Tax Reform in 2015, I wanted to ensure that our commitment to fully understand the impact of taxation on Scottish communities was fulfilled."
'Time to deliver''Time to deliver'
Ms Sturgeon added that her plans would "build on the findings" of the commission's report.Ms Sturgeon added that her plans would "build on the findings" of the commission's report.
A Scottish Labour spokesman said that for a decade the SNP had said it would replace the council tax with "something fairer". A Scottish Labour spokesman said that the SNP had said for a decade that it would replace the council tax with "something fairer".
He added: "Nicola Sturgeon now has to deliver on her personal promise, otherwise all her talk will be exposed as just posturing."He added: "Nicola Sturgeon now has to deliver on her personal promise, otherwise all her talk will be exposed as just posturing."
How did politicians react to the all-party commission's report in December?
Marco Biagi, Scottish government's Minister for Local Government - "We will consider the findings of the report carefully and we will set out our detailed proposals for reform by the end of the parliamentary term, embodying the principles of the commission's report."
Jackie Baillie, Scottish Labour's public services spokeswoman - "This is a comprehensive report that looks at a number of different options for local government finance. The challenge for all political parties now is to consider these options and come forward with their solution to put to the electorate next year."
Willie Rennie, Scottish Liberal Democrat leader - "This report sets out plenty of alternatives for the reform of local government finance but after eight years, people might have expected more from a government that said it was committed to reforming the council tax system."
Ruth Davidson, Scottish Conservative leader - "The Scottish Conservatives decided to set up an independent commission into fair and competitive taxation last year, headed by Sir Iain McMillan, to study these issues. Once that has reported, we will set out our own plans on local taxation."
Andy Wightman, Scottish Green MSP candidate and commission member - "The Scottish Green Party will consider the findings of the commission carefully and bring forward proposals in our manifesto for the 2016 Holyrood election."