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| Version 3 | Version 4 |
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| 'Challenging' local tax unveiled | 'Challenging' local tax unveiled |
| (about 1 hour later) | |
| Plans to replace the "unfair" council tax with a local income tax have been published by the Scottish Government. | Plans to replace the "unfair" council tax with a local income tax have been published by the Scottish Government. |
| Finance Secretary John Swinney said passing the plans for the 3p charge would be "challenging". | Finance Secretary John Swinney said passing the plans for the 3p charge would be "challenging". |
| The minority Holyrood administration needs the backing of rival parties to pass the plans - and the UK Government's support to implement them. | The minority Holyrood administration needs the backing of rival parties to pass the plans - and the UK Government's support to implement them. |
| Labour claimed the proposals would make workers in Scotland the highest taxed in the UK. | Labour claimed the proposals would make workers in Scotland the highest taxed in the UK. |
| Ministers hope to introduce the plans in 2011/12, around the time of the next Scottish Parliament election. | Ministers hope to introduce the plans in 2011/12, around the time of the next Scottish Parliament election. |
| The Scottish Government has been seeking support for the local income tax from the Liberal Democrats, who want councils to be able to set rates. | The Scottish Government has been seeking support for the local income tax from the Liberal Democrats, who want councils to be able to set rates. |
| The proposals - opposed by Labour and the Tories - would see the tax rate applied to income falling under the basic and higher rates of UK income tax. | The proposals - opposed by Labour and the Tories - would see the tax rate applied to income falling under the basic and higher rates of UK income tax. |
| LOCAL INCOME TAX - WHAT YOU WOULD PAY Single household, salary £20,000 - £443Single household, salary £33,675 - £854Single household, salary £62,000 - £1,703 Source: Scottish Government What will you pay? | LOCAL INCOME TAX - WHAT YOU WOULD PAY Single household, salary £20,000 - £443Single household, salary £33,675 - £854Single household, salary £62,000 - £1,703 Source: Scottish Government What will you pay? |
| There would be exemptions for savings and investment income, while a tax for second homes would broadly stay in line with the current arrangements. | There would be exemptions for savings and investment income, while a tax for second homes would broadly stay in line with the current arrangements. |
| It is hoped the new tax, if passed by parliament, would be collected through the existing PAYE system and self assessments. | It is hoped the new tax, if passed by parliament, would be collected through the existing PAYE system and self assessments. |
| Mr Swinney claimed that under the new system more than four out of five households would be better or no worse off. | Mr Swinney claimed that under the new system more than four out of five households would be better or no worse off. |
| "The council tax is unfair, regressive and penalises people on low incomes," said the finance secretary, whose government has just delivered a council tax freeze. | "The council tax is unfair, regressive and penalises people on low incomes," said the finance secretary, whose government has just delivered a council tax freeze. |
| "The people of Scotland will be better off paying a fairer, local income tax, based solely on the ability to pay." | "The people of Scotland will be better off paying a fairer, local income tax, based solely on the ability to pay." |
| READ THE CONSULTATION href="http://news.bbc.co.uk/1/shared/bsp/hi/pdfs/11_03_08_tax.pdf">Local income tax plans [28KB] Most computers will open this document automatically, but you may need Adobe Reader href="http://www.adobe.com/products/acrobat/readstep2.html">Download the reader here | |
| The local income tax plans, now part of a four-month consultation, were criticised by Scottish Labour leader Wendy Alexander. | The local income tax plans, now part of a four-month consultation, were criticised by Scottish Labour leader Wendy Alexander. |
| Ms Alexander said: "This Scottish jobs tax will hit the pay packets of every hardworking Scot. | Ms Alexander said: "This Scottish jobs tax will hit the pay packets of every hardworking Scot. |
| "There is nothing fair about the super rich getting off Scot free. | "There is nothing fair about the super rich getting off Scot free. |
| "And nothing just about making hardworking Scots pay at least 15% more in income tax than the rest of the UK." | "And nothing just about making hardworking Scots pay at least 15% more in income tax than the rest of the UK." |
| Tory finance spokesman Derek Brownlee called for a reformed council tax. | Tory finance spokesman Derek Brownlee called for a reformed council tax. |
| He said: "Under our plans to reform the council tax and cut it, 100% of council tax payers will see a reduction in their bills." | He said: "Under our plans to reform the council tax and cut it, 100% of council tax payers will see a reduction in their bills." |
| HIGHEST AND LOWEST COUNCIL TAX BILL AREAS (BAND D) Aberdeen - £1,230Glasgow - £1,213Dundee - £1,211Dum and Gall - £1,049Orkney - £1,037Western Isles - £1,024 Council tax bills 2008 | |
| But Lib Dem finance spokesman Tavish Scott said the consultation was a "significant milestone" in ditching the council tax. | But Lib Dem finance spokesman Tavish Scott said the consultation was a "significant milestone" in ditching the council tax. |
| Mr Scott said: "At our meeting yesterday evening, the cabinet secretary for finance and I agreed that the opportunity to build a parliamentary majority in favour of change and overcome the Labour and Tory supporters of council tax made our continued discussions worthwhile." | Mr Scott said: "At our meeting yesterday evening, the cabinet secretary for finance and I agreed that the opportunity to build a parliamentary majority in favour of change and overcome the Labour and Tory supporters of council tax made our continued discussions worthwhile." |
| CBI Scotland director Iain McMillan said: "Higher levels of income tax in Scotland will send the wrong message to people in England and overseas about Scotland's tax regime because Scotland's effective basic and higher rates of tax will be the highest in the UK." | CBI Scotland director Iain McMillan said: "Higher levels of income tax in Scotland will send the wrong message to people in England and overseas about Scotland's tax regime because Scotland's effective basic and higher rates of tax will be the highest in the UK." |
| Chancellor Alistair Darling has also said Scotland would lose out on £400m in council tax benefit if the charge was scrapped, but the Scottish Government has insisted the cash is "part and parcel" of the country's funding package. | Chancellor Alistair Darling has also said Scotland would lose out on £400m in council tax benefit if the charge was scrapped, but the Scottish Government has insisted the cash is "part and parcel" of the country's funding package. |