War of words over local tax plans

http://news.bbc.co.uk/go/rss/-/1/hi/scotland/6588013.stm

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Jack McConnell has again attacked SNP plans to replace the council tax with a local income tax, claiming aspects of the policy were "scandalous".

The Scottish Labour leader conceded the council tax was unpopular, but insisted it was a "stable" system of local government funding.

SNP deputy leader Nicola Sturgeon claimed Labour had been unable to explain any aspect of its policy.

The Nationalists policy, she added, was "fully costed and totally fair".

Mr McConnell said that Scottish Labour's case had been undermined by an absence of detailed figures on how many would gain and how many would lose under the party's plans for easing the council tax burden.

The party's plans include creating an extra band at the top and at the bottom of the council tax scale.

The SNP's local income tax policy is fully costed, totally fair, and hugely popular Nicola SturgeonSNP deputy leader

Speaking in Stirling, Mr McConnell said: "Under the proposals from Labour, every household will benefit from our commitment to keep rises below inflation.

"Less than 11,000 households in Scotland will pay a little bit more.

"A proportion of the half-million households in Band A will pay a little bit less - some of the poorest families in Scotland. And between 500,000 and 600,000 pensioner households will have their water and sewerage charges cut and then abolished."

The First Minister said it was "scandalous" that under the SNP's plans for a 3p local income tax, the super rich who lived on unearned income would pay nothing while students faced the prospect of extra tax on part-time and summer jobs.

The Nationalists said the current system was unfair

He claimed the Nationalists' plans would leave Scots paying the highest level of personal taxes in the UK, and would particularly hit households with two or more earners.

However, Ms Sturgeon said she was still waiting for detailed answers, claiming council tax was an "electoral millstone" around Labour's neck.

"They can't say who would gain, or who would lose out," she said.

"They can't say how much money would be raised from increases at the top end of the scale or how much people at the bottom would save."

Ms Sturgeon added: "The SNP's local income tax policy is fully costed, totally fair, and hugely popular.

"People are more likely to vote SNP because of our fair local income tax policy. People are less likely to vote Labour because of the council tax."