McConnell confirms tax intentions

http://news.bbc.co.uk/go/rss/-/1/hi/scotland/6481035.stm

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First Minister Jack McConnell has promised that Labour will set out plans to reform the council tax in advance of the Holyrood election.

He confirmed his intentions as he was challenged at Holyrood by SNP deputy leader Nicola Sturgeon.

During First Minister's Questions, she defended Nationalist plans to scrap council tax and replace it with a local income tax of 3p in the pound.

But Mr McConnell said a property tax was best for local services.

It is thought the Labour plan will involve the creation of new upper and lower bands to spread the impact of the tax.

Mr McConnell said last year's Burt Review of local government finance would "inform" Labour's decision-making, while stating that the Scottish public would dismiss the SNP's "poll tax".

"That independent review of course shows that SNP plans for a poll tax would not only add 3p on the income tax raised in Scotland but would cut vital services locally and nationally," he said.

Nicola Sturgeon said the current council tax system was unfair

The first minister added: "We have been suspecting for months that Alex Salmond and Nicola Sturgeon would make some big mistakes just before the election campaign - but we did not expect anything quite as big as this."

But Ms Sturgeon dismissed his comments as a "rather stupid smear", adding: "My party will abolish the unfair council tax.

"Nine out of 10 people will be better off, most pensioners will pay nothing - in other words, it's a tax cut from the SNP, not a tax con trick from Labour.

"If we are to have a real debate, it's about time the first minister said what he would do instead."