04 July 2008
The Scottish government's plan to replace the council tax with a local income tax has received surprise backing from local authority leaders.
A meeting of the Convention of Scottish Local Authorities on June 27 voted in favour, but with a majority of only two votes.
Finance Secretary John Swinney welcomed the decision. 'The council tax is an unfair tax and it is time we moved to a fairer system that recognises people's ability to pay – and Scotland's representative local government organisation now agrees with that, which is an excellent step forward,' he said.
The Cosla decision reverses its previous position, which supported Scottish Labour's plans for a modernised council tax.
Radical changes in the political composition of Scotland's councils, following the introduction of proportional representation at the May 2007 elections, resulted in more Scottish National Party and Scottish Liberal Democrat councillors in favour of an LIT.
The decision to approve a motion saying the convention 'believes the regressive council tax should be abolished and replaced with a local income tax based on ability to pay' will now form the basis for Cosla's submission to the Scottish government's consultation on the LIT.
Labour public services spokesman Andy Kerr said it was a 'regrettable decision' that went against decisions made by individual councils and the opinion of business, trade unions and independent experts.
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