01 April 2005
The current review of local government finance in Scotland must be conducted in concert with the wider reform of services, senior public finance officials have warned.
In a submission to the Burt review committee set up by the Scottish Executive, CIPFA in Scotland notes that ministers have made it clear that the 'vision' for public services will be translated into a series of strategic objectives.
These include the development of public and local authority services beyond geographical boundaries and councils being challenged to provide more shared services and engage in community planning.
The submission states: 'Any review of local government taxation which failed to take account of these wider issues may serve the status quo but may not serve the progressive direction of Scottish public services.'
CIPFA's comments follow the publication of a consultation document by the local government finance review committee chaired by Sir Peter Burt, a former chief executive of the Bank of Scotland. It is examining possible options for the future of the local taxation system.
CIPFA suggests that efficiencies could be gained from shared backroom services, including improved performance in the collection of council tax. It backs the case for a form of progressive property taxation as the basis of local authority funding in Scotland, and suggests improvements could be made to the council tax by increasing the number of tax bands and revaluating domestic property.
The submission does not rule out a local income tax. Don Peebles, policy manager for CIPFA Scotland, said any system would need to be operated at UK level.
PFapr2005
