Wendy’s Local Income Tax Warning
Wendy Alexander has warned SNP plans for a local income tax will take power away from local government and lead to an erosion of local democracy and accountability.
The Labour leader at Holyrood is expected to criticise the proposed new tax as “a power grab by the centre” in her address to the annual conference of the Convention of Scottish Local Authorities.
“Hiking Income Tax for every working Scot and then passing the proceeds on to local councils will end local financial accountability and will be bad news for local democracy,” Ms Alexander said.
“It is misconceived and anti-competitive and will clobber hundreds of thousands of hard working Scots.
“Higher rates of income tax for all those in work robs local government of current powers and responsibilities over local spending levels. In future elected members in council chambers across Scotland will have no say in setting local spending levels.”
Ms Alexander said: “This power grab by the centre may appeal to the SNP’s control freak tendency but it will do nothing to enable councils to respond to local priorities in their own areas.
“There is nothing ‘local’ about central government hiking income tax.
“Labour has always supported strong local government. We believe in local politicians deciding local priorities. The SNP claim of a rate of 3p in the pound for the new tax would only raise half of what the council tax currently raises. It will effectively be an extra tax on everyone in work. No wonder the SNP are dragging their feet on the consultation, the legislation and a start date.
“Far from being ‘A Fair Deal for Middle Scotland’ the only people in Middle Scotland likely to benefit from this hike in income tax are accountants - who will have plenty of business clients eager to avoid paying a penny of the new tax.”
