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Scottish Labour pledges to scrap 'unfair' council tax | Scottish Labour pledges to scrap 'unfair' council tax |
(about 2 hours later) | |
Scottish Labour has pledged to scrap the council tax, saying the current system is "unfair". | Scottish Labour has pledged to scrap the council tax, saying the current system is "unfair". |
The party unveiled plans for a new form of local government tax based on property value which it said would make 80% of households better off. | The party unveiled plans for a new form of local government tax based on property value which it said would make 80% of households better off. |
Announcing the policy in Edinburgh, party leader Kezia Dugdale also proposed a tourist tax and a tax on vacant, economically inactive land. | Announcing the policy in Edinburgh, party leader Kezia Dugdale also proposed a tourist tax and a tax on vacant, economically inactive land. |
The SNP announced planned reforms of its own earlier in the month. | The SNP announced planned reforms of its own earlier in the month. |
Its leader Nicola Sturgeon has pledged to end the council tax freeze from 2017 and raise the four highest bands to generate funds for services. | Its leader Nicola Sturgeon has pledged to end the council tax freeze from 2017 and raise the four highest bands to generate funds for services. |
'Fix local services funding' | 'Fix local services funding' |
Opposition parties pointed out that the SNP had pledged to abolish the tax in its 2007 manifesto, leading Ms Sturgeon to challenge them to set out their own proposals. | Opposition parties pointed out that the SNP had pledged to abolish the tax in its 2007 manifesto, leading Ms Sturgeon to challenge them to set out their own proposals. |
Ms Dugdale said Labour would "make good on the SNP's broken promise and scrap the council tax", basing her plans on the Commission on Local Tax Reform. | Ms Dugdale said Labour would "make good on the SNP's broken promise and scrap the council tax", basing her plans on the Commission on Local Tax Reform. |
She said: "We will fix the funding of local services for good. It's a fair plan which means millions will pay less and those who can afford to will pay a little more. | She said: "We will fix the funding of local services for good. It's a fair plan which means millions will pay less and those who can afford to will pay a little more. |
"The SNP commissioned a report into replacing council tax and then bottled it when it was time to be radical. We have taken that report, and its research, and voters can now choose a fairer alternative to council tax." | "The SNP commissioned a report into replacing council tax and then bottled it when it was time to be radical. We have taken that report, and its research, and voters can now choose a fairer alternative to council tax." |
How will Labour's plan work? | How will Labour's plan work? |
Under the proposals, properties worth £180,000 or less would be taxed £450, plus 0.35% of the property value. | Under the proposals, properties worth £180,000 or less would be taxed £450, plus 0.35% of the property value. |
For properties worth more than this, the portion of the value above £180,000 would attract a rate of 0.9% of the property value. | For properties worth more than this, the portion of the value above £180,000 would attract a rate of 0.9% of the property value. |
The maximum charge would be capped at £3,000, with a cap on year-on-year increases at 3%. | The maximum charge would be capped at £3,000, with a cap on year-on-year increases at 3%. |
Labour said this would leave nearly two million households better off, with 80% paying less than they currently do. | Labour said this would leave nearly two million households better off, with 80% paying less than they currently do. |
The party's plans involve carrying out a revaluation of properties in Scotland, costing £8.5m, which the SNP decided against in its proposals. The last valuation was carried out in 1991. | The party's plans involve carrying out a revaluation of properties in Scotland, costing £8.5m, which the SNP decided against in its proposals. The last valuation was carried out in 1991. |
'Back to the 1970s' | |
Scottish Conservative leader Ruth Davidson said the plans would "tax Scotland back to the 1970s". | |
She said: "Scottish Labour has become the enemy of aspiration. Going into this election, we have a government promising to put up taxes and a main opposition party saying taxpayers should be hammered even harder. | |
"Only we are standing up for Scotland's workers." | |
The Scottish Greens, who are to publish their own council tax reform ideas next week, said Labour's proposals were "welcome", but questioned the £3,000 cap. | |
The SNP has also to set out its plans for income tax reform, proposing to freeze rates. | |
Labour and the Lib Dems have both proposed immediately raising the Scottish rate of income tax by 1p across all bands to raise money for education and other local services. | |
Labour has also proposed a freeze on the 40p threshold throughout the next term of parliament, and wants to restore a 50p rate of income tax for people earning more than £150,000. | Labour has also proposed a freeze on the 40p threshold throughout the next term of parliament, and wants to restore a 50p rate of income tax for people earning more than £150,000. |