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Darling warns Salmond on rebate Darling warns Salmond on rebate
(10 minutes later)
Chancellor Alistair Darling has warned Scotland's first minister that he is "never going to get" the £400m currently spent on council tax benefit.Chancellor Alistair Darling has warned Scotland's first minister that he is "never going to get" the £400m currently spent on council tax benefit.
The Scottish Government's plans for a local income tax have included retaining the rebate from Westminster.The Scottish Government's plans for a local income tax have included retaining the rebate from Westminster.
Finance Secretary John Swinney has previously said it was clear the council tax benefit belonged to Scotland.Finance Secretary John Swinney has previously said it was clear the council tax benefit belonged to Scotland.
Mr Darling said "it would be grossly unfair" to the rest of the country.Mr Darling said "it would be grossly unfair" to the rest of the country.
In an interview for BBC Scotland's Politics Show, he added: "Alex Salmond knew this full well. He can bluster as much as he wants, the fact is that he knew that he was never going to get this money."In an interview for BBC Scotland's Politics Show, he added: "Alex Salmond knew this full well. He can bluster as much as he wants, the fact is that he knew that he was never going to get this money."
He said a local income tax would harm Scotland economy "in terms of attracting people we need to come to Scotland I think it would be extremely damaging, so does most of Scottish industry think that". He said a local income tax would harm Scotland economy "in terms of putting off people we actually need to come to Scotland I think it would be extremely damaging, so does most of Scottish industry think that".
Key advantagesKey advantages
Holyrood's SNP administration wants a 3p local income tax brought in to replace the council tax by 2011/12.Holyrood's SNP administration wants a 3p local income tax brought in to replace the council tax by 2011/12.
A Scottish Government spokesman said it believed its proposal contained key advantages for Scottish business.A Scottish Government spokesman said it believed its proposal contained key advantages for Scottish business.
He added: "We are engaging with the business community on our consultation to scrap the unfair council tax and replace it with a fair local income tax based on ability to pay - which would see four out of five households across Scotland better off or no worse off.He added: "We are engaging with the business community on our consultation to scrap the unfair council tax and replace it with a fair local income tax based on ability to pay - which would see four out of five households across Scotland better off or no worse off.
"A successful Scotland will continue to attract people to Scotland for all the right reasons - particularly one that will have the lowest local tax in the UK.""A successful Scotland will continue to attract people to Scotland for all the right reasons - particularly one that will have the lowest local tax in the UK."