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| Version 0 | Version 1 |
|---|---|
| Glasgow 'against' local tax plan | Glasgow 'against' local tax plan |
| (about 10 hours later) | |
| Scotland's largest council is poised to formally reject proposals for a local income tax. | Scotland's largest council is poised to formally reject proposals for a local income tax. |
| Glasgow City Council's response to the Scottish Government's consultation is set out in a report which is due to be considered next week. | Glasgow City Council's response to the Scottish Government's consultation is set out in a report which is due to be considered next week. |
| Council leader Steven Purcell said the introduction of local taxation would be "a disaster for Scotland's economy". | Council leader Steven Purcell said the introduction of local taxation would be "a disaster for Scotland's economy". |
| The minority Scottish Government hopes to win support from rival parties to introduce the scheme in 2011/12. | The minority Scottish Government hopes to win support from rival parties to introduce the scheme in 2011/12. |
| The report on the local income tax consultation goes before Glasgow City Council on 26 June. | The report on the local income tax consultation goes before Glasgow City Council on 26 June. |
| It states that officials have analysed data from over 6,000 people who have used the council's local tax calculator. | It states that officials have analysed data from over 6,000 people who have used the council's local tax calculator. |
| The report states that Glasgow would need to set a local income tax of 4.5p in the pound to meet current levels of revenue. | |
| It states that under such a system, 47% of residents would be better off, 46% worse off and 7% would see no difference. | It states that under such a system, 47% of residents would be better off, 46% worse off and 7% would see no difference. |
| If the tax was set at 3p, Glasgow would be left with an annual funding shortfall of about £60m - assuming that council tax benefit was received from the Treasury in London. | If the tax was set at 3p, Glasgow would be left with an annual funding shortfall of about £60m - assuming that council tax benefit was received from the Treasury in London. |
| If this was not given - as the Treasury has indicated - then the shortfall would rise to £133m. | If this was not given - as the Treasury has indicated - then the shortfall would rise to £133m. |
| The report also highlights the council's need to find £50m in efficiency savings over the next two financial years to meet the cost of inflation and police pensions. | The report also highlights the council's need to find £50m in efficiency savings over the next two financial years to meet the cost of inflation and police pensions. |
| It states that an additional £120m would need to be cut from budgets under local taxation. | It states that an additional £120m would need to be cut from budgets under local taxation. |
| Better off | Better off |
| Council leader, Steven Purcell, said the findings should persuade the government to scrap its plans. | Council leader, Steven Purcell, said the findings should persuade the government to scrap its plans. |
| "We've taken a long, hard look at this proposed new tax and I simply cannot see how it can be made to work without increasing taxation for a large number of people or drastically cutting council services," he said. | "We've taken a long, hard look at this proposed new tax and I simply cannot see how it can be made to work without increasing taxation for a large number of people or drastically cutting council services," he said. |
| "We will either see cuts of tens, potentially hundreds of millions of pounds or nearly half of Glaswegians will pay substantially more tax. Both outcomes would be a disaster for Scotland's economy. | "We will either see cuts of tens, potentially hundreds of millions of pounds or nearly half of Glaswegians will pay substantially more tax. Both outcomes would be a disaster for Scotland's economy. |
| "No one thinks the council tax is perfect. However I would urge the Scottish Government to have another think about how best to fairly raise the resources to fund services which every person in every community relies on." | "No one thinks the council tax is perfect. However I would urge the Scottish Government to have another think about how best to fairly raise the resources to fund services which every person in every community relies on." |
| But Glasgow SNP MSP Bob Doris said the Labour council had shown that 72% of Glaswegians would be better off under the local income tax proposals. | But Glasgow SNP MSP Bob Doris said the Labour council had shown that 72% of Glaswegians would be better off under the local income tax proposals. |
| He added:"Glasgow Labour have shot themselves in the foot. This report gives the game away. It is no wonder Labour voters back the local income tax." | He added:"Glasgow Labour have shot themselves in the foot. This report gives the game away. It is no wonder Labour voters back the local income tax." |
| Liberal Democrat Glasgow MSP Robert Brown said it was "astonishing" that Glasgow City Council would prefer to back council tax. | Liberal Democrat Glasgow MSP Robert Brown said it was "astonishing" that Glasgow City Council would prefer to back council tax. |
| He continued: "This paper is missing the point about local income tax. It is ridiculous to suggest that LIT would generate a smaller income in Glasgow than the unfair and discredited council tax." | He continued: "This paper is missing the point about local income tax. It is ridiculous to suggest that LIT would generate a smaller income in Glasgow than the unfair and discredited council tax." |
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