Commission to consider income-based replacement for council tax

A commission has been set up by Holyrood and local authorities is looking into alternatives for the Council tax in Scotland.

The SNP has been looking to abolish for years and plans are afoot for a hybrid system based on household wealth and property value.

The body released findings yesterday of an online survey indicating that two out of three respondents believe it should be replaced with a reformed system of local tax based on income.

The data showed that people aged 16-34, single people and those in poorer households were more likely than high earners to oppose the council tax.

The Commission on Local Tax Reform, set up to gauge public perceptions of local government finance reform, is to publish its final report in the next few weeks.

Marco Biagi, minister for local government and co-chairman of the commission, said: “There is clear consensus from those that we have heard from … that the current system of council tax is in urgent need of reform.”

Councillor David O’Neill, his fellow chairman and the president of the Convention of Scottish Local Authorities (Cosla), added: “Each and every one of us is affected by the way we pay for vital local services, so the views of those who have responded to our online survey will have a great deal of resonance as we formalise our findings.”

First Minster Nicola Sturgeon announced the establishment of a commission in November last year. She said at the time: “We will take forward our manifesto commitment to establish an independent commission to examine fairer alternatives to the council tax system. The council tax freeze will remain in place for the duration of this parliament.” She added that the commission would report by autumn this year, but the report is now overdue.

The council tax freeze is also placing pressure on local authorities, which have warned that their budgets are under huge pressure. Officials fear further cuts when John Swinney sets his budget next month in response to George Osborne’s spending review.

Yesterday Cosla said that there would be “severe cuts in vital services and job losses in communities” which would “impact on the most vulnerable in our society”.

Kevin Keenan, the organisation’s financial spokesman, said: “Scottish local government and the communities we represent cannot take any more pain. We are already operating within a financial straitjacket … with things like the council tax freeze restricting our ability to operate.”

A Scottish government spokesman insisted: “Local government finance settlements have been maintained over the period 2012-16, with extra money for new responsibilities, including an additional £70 million every year since 2008-09 to fund the council tax freeze.”