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Ex-bank boss turns on tax plans | Ex-bank boss turns on tax plans |
(2 days later) | |
The former governor of the Bank of Scotland has criticised the main parties' plans to reform council tax. | The former governor of the Bank of Scotland has criticised the main parties' plans to reform council tax. |
Sir Peter Burt also said he saw no good reason not to have a referendum on independence. | Sir Peter Burt also said he saw no good reason not to have a referendum on independence. |
Earlier in the week the businessman's name appeared in a newspaper advert supporting the Union. | Earlier in the week the businessman's name appeared in a newspaper advert supporting the Union. |
Speaking to Newsnight Scotland, he said that if there was strong enough feeling in the country a referendum would help clear the matter "once and for all". | Speaking to Newsnight Scotland, he said that if there was strong enough feeling in the country a referendum would help clear the matter "once and for all". |
Sir Peter also cast a critical eye on the main parties' policies for the reform of the council tax. | Sir Peter also cast a critical eye on the main parties' policies for the reform of the council tax. |
He identified faults with the proposals currently on the table. | He identified faults with the proposals currently on the table. |
Sir Peter was commissioned by the Scottish Executive to look at ways of changing the local government tax system. | Sir Peter was commissioned by the Scottish Executive to look at ways of changing the local government tax system. |
It would be like an obese person on a crash diet, yes, you lose weight very quickly, but it can harm you quite severely Sir Peter Burt on independence | It would be like an obese person on a crash diet, yes, you lose weight very quickly, but it can harm you quite severely Sir Peter Burt on independence |
He concluded that the current arrangement should be replaced with an annual charge based on property value. | He concluded that the current arrangement should be replaced with an annual charge based on property value. |
The "A Fairer Way" report said the tax should be based on about 1% of a home's value | The "A Fairer Way" report said the tax should be based on about 1% of a home's value |
However, the formula was rejected by First Minister Jack McConnell and the main parties. | However, the formula was rejected by First Minister Jack McConnell and the main parties. |
On Wednesday Sir Peter's name appeared on the pro-Union list, which was published in The Scotsman newspaper. | On Wednesday Sir Peter's name appeared on the pro-Union list, which was published in The Scotsman newspaper. |
He used the analogy of someone losing weight to explain that independence would not be healthy for Scotland. | He used the analogy of someone losing weight to explain that independence would not be healthy for Scotland. |
'I might be wrong' | 'I might be wrong' |
Sir Peter said: "It would be like an obese person on a crash diet, yes, you lose weight very quickly, but it can harm you quite severely. | Sir Peter said: "It would be like an obese person on a crash diet, yes, you lose weight very quickly, but it can harm you quite severely. |
"We would be much better being part of the Union and have the benefit of doing it as part of the UK as a whole." | "We would be much better being part of the Union and have the benefit of doing it as part of the UK as a whole." |
But he admitted he could see no good reason not to have a referendum "if a significant percentage of the population appeared to want it". | But he admitted he could see no good reason not to have a referendum "if a significant percentage of the population appeared to want it". |
He added: "I don't think there would be a majority of the electorate voting for the SNP, I might be wrong. | He added: "I don't think there would be a majority of the electorate voting for the SNP, I might be wrong. |
Sir Peter Burt is a backer of the Union, but not against a referendum | Sir Peter Burt is a backer of the Union, but not against a referendum |
"But if there were a majority voting for the SNP I think the sooner we had a referendum the better, let's get this clear once and for all and out of the way." | "But if there were a majority voting for the SNP I think the sooner we had a referendum the better, let's get this clear once and for all and out of the way." |
Sir Peter went on to assess the council tax policies of the main parties. | Sir Peter went on to assess the council tax policies of the main parties. |
He said Labour's plan to reduce council tax bills by £10 for every household in band A would result in increases in bills by £500 for householders in band H. | He said Labour's plan to reduce council tax bills by £10 for every household in band A would result in increases in bills by £500 for householders in band H. |
Sir Peter said: "In the Middle Ages they spent a long time looking for the philosopher's stone to turn lead into gold, maybe Labour have found it." | |
He also said that plans to discount the water and sewage elements for over 65-year-olds were not an efficient use of resources. | He also said that plans to discount the water and sewage elements for over 65-year-olds were not an efficient use of resources. |
"It means in another couple of years time, when I reach 65, I will get a discount on my water and sewerage charges and I don't think that that is an efficient use of resources and there are plenty of people in my circumstances. | "It means in another couple of years time, when I reach 65, I will get a discount on my water and sewerage charges and I don't think that that is an efficient use of resources and there are plenty of people in my circumstances. |
Unearned income | Unearned income |
"They should be focusing on poorer members of society," said Sir Peter. | "They should be focusing on poorer members of society," said Sir Peter. |
The Scottish Tories also have plans to increase the benefit and lessen the financial burden for the over-65s. | The Scottish Tories also have plans to increase the benefit and lessen the financial burden for the over-65s. |
Leader Annabel Goldie said a 50% discount to pensioners funded from the centre was one of the "simplest mechanisms to pursue". | Leader Annabel Goldie said a 50% discount to pensioners funded from the centre was one of the "simplest mechanisms to pursue". |
He added that the Lib Dems proposal, with variable rates for 32 councils, would be a "nightmare for employers". | He added that the Lib Dems proposal, with variable rates for 32 councils, would be a "nightmare for employers". |
Sir Peter believed that an income tax to replace the council tax would only be effective if it were to apply Scotland-wide. | Sir Peter believed that an income tax to replace the council tax would only be effective if it were to apply Scotland-wide. |
He went on to criticise the SNP and the Lib Dems' proposals to exclude unearned income in their plans. | He went on to criticise the SNP and the Lib Dems' proposals to exclude unearned income in their plans. |
"People with large savings, and who have an income off that, will not have to pay any tax at all," he said. | "People with large savings, and who have an income off that, will not have to pay any tax at all," he said. |
"I don't think that is as fair as the council tax, you are excluding an significant proportion of the population's income, according to the figures from HMRC it is about 8% who would be excluded. | "I don't think that is as fair as the council tax, you are excluding an significant proportion of the population's income, according to the figures from HMRC it is about 8% who would be excluded. |
"Should the richest in society not be paying tax on that? | "Should the richest in society not be paying tax on that? |
"It will encourage savings, I supposed it will encourage people to transfer earned income to savings so if you are running a small company it will make sense to cut your salary and pay the profits as dividend." | "It will encourage savings, I supposed it will encourage people to transfer earned income to savings so if you are running a small company it will make sense to cut your salary and pay the profits as dividend." |
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