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Nationalist pledge on council tax Nationalist pledge on council tax
(about 7 hours later)
The Scottish National Party has pledged to freeze council tax levels if it wins next year's Holyrood elections.The Scottish National Party has pledged to freeze council tax levels if it wins next year's Holyrood elections.
The party's deputy leader, Nicola Sturgeon, promised to cap council tax for two years, until a new system of local income tax is introduced.The party's deputy leader, Nicola Sturgeon, promised to cap council tax for two years, until a new system of local income tax is introduced.
Ms Sturgeon has written to SNP councillors outlining the new policy.Ms Sturgeon has written to SNP councillors outlining the new policy.
But Finance Minister Tom McCabe and Conservative finance spokesman Derek Brownlee have hit out at the Nationalists' council tax plan.But Finance Minister Tom McCabe and Conservative finance spokesman Derek Brownlee have hit out at the Nationalists' council tax plan.
Mr McCabe is preparing to unveil details of next year's funding package for Scotland's local authorities and he believes the SNP propsals would create a huge gap in council finance Mr McCabe is preparing to unveil details of next year's funding package for Scotland's local authorities and he believes the SNP proposals would create a huge gap in council finance
Last November a report into local taxation in Scotland said the council tax should be replaced with an annual charge based on property value. In November a report into local taxation in Scotland said the council tax should be replaced with an annual charge based on property value.
The "A Fairer Way" report by the independent local government finance review committee said the tax should be based on about 1% of a home's value.The "A Fairer Way" report by the independent local government finance review committee said the tax should be based on about 1% of a home's value.
We shall use existing powers to place a ceiling on the level of council tax in every local authority across Scotland Nicola SturgeonSNP Deputy LeaderWe shall use existing powers to place a ceiling on the level of council tax in every local authority across Scotland Nicola SturgeonSNP Deputy Leader
The formula was rejected by First Minister Jack McConnell and the main parties.The formula was rejected by First Minister Jack McConnell and the main parties.
The SNP plan would mean charges would be frozen after any increases which are imposed next year.The SNP plan would mean charges would be frozen after any increases which are imposed next year.
On Wednesday, she pledged: "Under an SNP government the April 2007 increases will be the last of the Labour-inspired council tax increases."On Wednesday, she pledged: "Under an SNP government the April 2007 increases will be the last of the Labour-inspired council tax increases."
Ms Sturgeon said the party's proposals to abolish council tax and replace it with a system of local income tax would be a key part of its campaign at next year's council elections, which are taking place on the same date as the Holyrood poll.Ms Sturgeon said the party's proposals to abolish council tax and replace it with a system of local income tax would be a key part of its campaign at next year's council elections, which are taking place on the same date as the Holyrood poll.
She added: "Because of the inherent unfairness of the current local taxation system for the majority of Scots, we plan to make the abolition of council tax central to our local government campaign."She added: "Because of the inherent unfairness of the current local taxation system for the majority of Scots, we plan to make the abolition of council tax central to our local government campaign."
In her letter to SNP councillors, Miss Sturgeon said more than half a million pensioners who do not pay income tax would not pay anything under the party's local income tax proposals. In her letter to SNP councillors, Miss Sturgeon said more than 500,000 pensioners who do not pay income tax would not pay anything under the party's local income tax proposals.
'Last ever''Last ever'
And she added that families on low and middle incomes would also benefit from the switch.And she added that families on low and middle incomes would also benefit from the switch.
Ms Sturgeon said: "After years of Labour increases in council tax, local tax payers deserve a break.Ms Sturgeon said: "After years of Labour increases in council tax, local tax payers deserve a break.
"That is why the SNP will ensure that the increase in council taxes in April 2007 will be the last ever increase in the council tax."That is why the SNP will ensure that the increase in council taxes in April 2007 will be the last ever increase in the council tax.
Nicola Sturgeon has written to SNP councillors on the matterNicola Sturgeon has written to SNP councillors on the matter
"We shall use existing powers to place a ceiling on the level of council tax in every local authority across Scotland."We shall use existing powers to place a ceiling on the level of council tax in every local authority across Scotland.
"The level of council tax will therefore remain frozen for the two years that it will take to introduce a fairer local income tax based on the ability to pay.""The level of council tax will therefore remain frozen for the two years that it will take to introduce a fairer local income tax based on the ability to pay."
Mr Brownlee said SNP plans to freeze council tax come less than a month after the party's Moray MP, Angus Robertson, said the tax burden in Scotland would not have to be "raised significantly" after independence.Mr Brownlee said SNP plans to freeze council tax come less than a month after the party's Moray MP, Angus Robertson, said the tax burden in Scotland would not have to be "raised significantly" after independence.
"This is more fantasy politics from the SNP, who only two weeks ago were promising higher taxes for Scotland," Mr Brownlee said."This is more fantasy politics from the SNP, who only two weeks ago were promising higher taxes for Scotland," Mr Brownlee said.
It is believed that Labour ministers still favour a form of property tax but with reforms which would see additional bands added to the present council tax.It is believed that Labour ministers still favour a form of property tax but with reforms which would see additional bands added to the present council tax.