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Government to scrap council tax Government to scrap council tax
(about 1 hour later)
The Scottish government is to press ahead with its plans to replace council tax with an income-based alternative.The Scottish government is to press ahead with its plans to replace council tax with an income-based alternative.
However, the plan as it stands could run into trouble with likely opposition from the Scottish Liberal Democrats.However, the plan as it stands could run into trouble with likely opposition from the Scottish Liberal Democrats.
Finance Secretary John Swinney said legislation would be brought forward to scrap the "unfair" tax.Finance Secretary John Swinney said legislation would be brought forward to scrap the "unfair" tax.
The LibDems want individual councils to be able to vary local income tax - while the SNP want a fixed 3p levy across Scotland. The Lib Dems want individual councils to be able to vary local income tax - while the SNP want a fixed 3p levy across Scotland.
Scottish Labour has remained opposed to scrapping the council tax - a key SNP election pledge. Scottish Labour has remained opposed to scrapping the council tax - a key SNP election pledge - and the Greens are also opposed to the Nationalists' plan.
We stood for election on a platform to abolish the unfair council tax John Swinney MSPFinance secretary
Mr Swinney told parliament that, as a first step, he was aiming for a freeze in council tax rates from April 2008.
It was set out as part of a drive to raise Scotland's growth rate to UK levels by 2011.
"The government will bring forward legislation to abolish the unfair council tax," said Mr Swinney.
"Our proposal is for a local income tax based on the ability to pay which will reduce the overall burden of local tax with the benefit felt by pensioners, families and the majority of Scots.
"We stood for election on a platform to abolish the unfair council tax and we are determined to deliver this as part of our agenda to create a wealthier and a fairer Scotland."