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Cosla backs local income tax plan Councils support local income tax
(about 3 hours later)
Council leaders have narrowly voted to support moves to scrap the council tax. Scottish council chiefs have narrowly backed moves to scrap the council tax in favour of a local income tax.
A meeting of local authority umbrella group Cosla in Aberdeen voted 52 to 50 in favour of Scottish Government plans for a local income tax. A meeting of local authority umbrella group Cosla in Aberdeen voted 52 to 50 in favour the move.
Labour and Conservative councillors voted against. Support for a local income tax will now be the official position of the local government body. The Scottish Government hopes to introduce a local income tax of 3p in the pound in 2011/12 but would require the support of other parties.
Cosla said it would try to reflect the views of the minority because there had been such a vigorous debate. Cosla members split along party lines with SNP and Lib Dems favouring the move and Labour and Tory against.
The Scottish Government hopes to introduce a local income tax in 2011/12 but would require the support of other parties. While agreeing to support a local income tax, there was no clear decision on how that tax would operate.
Glasgow City Council recently published research which suggested a local income tax set at 3p would leave the city with a £60m funding shortfall. Some support a tax set on a council-by-council basis while others are in favour of the SNP government's preferred option of a 3p levy set nationally.
The Scottish Government said it accepted there would have to be some adjustment of council funding. With this Cosla vote the days of the sky-high council tax look to be numbered Finance Secretary John Swinney It claimed a local income tax would be fairer, with four out of five households better or no worse off. SNP group leader in Cosla, Dick Lyle, said the result would help the Scottish Government deliver a fair local income tax for people across Scotland.
Finance Secretary John Swinney welcomed the Cosla vote. But Pat Watters, the leader of Cosla and a Labour councillor, said there was a strong minority view in favour of retaining a council tax with some amendments.
With this Cosla vote the days of the sky-high council tax look to be numbered Finance Secretary John Swinney It claimed a local income tax would be fairer, with four out of five households better or no worse off.
Scottish Government Finance Secretary John Swinney welcomed the Cosla vote.
He said: "The council tax is an unfair tax and it is time we moved to a fairer system that recognises people's ability to pay - and Scotland's representative local government organisation now agrees with that, which is an excellent step forward.He said: "The council tax is an unfair tax and it is time we moved to a fairer system that recognises people's ability to pay - and Scotland's representative local government organisation now agrees with that, which is an excellent step forward.
"The Scottish Government's 3p local income tax plans will see the vast majority of Scots paying less local tax, with the biggest benefits enjoyed by people with the lowest incomes in our society. In particular, pensioners will be much better off."The Scottish Government's 3p local income tax plans will see the vast majority of Scots paying less local tax, with the biggest benefits enjoyed by people with the lowest incomes in our society. In particular, pensioners will be much better off.
"The Scottish Parliament has already voted in favour of the principle of abolishing the council tax. With this Cosla vote, the days of the sky-high council tax look to be numbered.""The Scottish Parliament has already voted in favour of the principle of abolishing the council tax. With this Cosla vote, the days of the sky-high council tax look to be numbered."
Labour said the decision did not support the "prevailing view" among local authorities.Labour said the decision did not support the "prevailing view" among local authorities.
Public services spokesman Andy Kerr said: "A number of local authorities were not represented at the Cosla meeting to discuss local income tax today.Public services spokesman Andy Kerr said: "A number of local authorities were not represented at the Cosla meeting to discuss local income tax today.
"In that context it would be wrong to paint this decision as one that gives a universal thumbs-up to the Scottish Government's local income tax plans.""In that context it would be wrong to paint this decision as one that gives a universal thumbs-up to the Scottish Government's local income tax plans."