MSP Briefing - Abolition of
Council Tax
Introduction
This briefing sets out UNISON Scotland's position
on the Abolition of the Council Tax and introduction of a Scottish
Service Tax, which is to be debated at Stage one on Wednesday
1st February.
Local Government Finance
UNISON Scotland fully supports and welcomes the
report of the Local Government Committee on the proposal to abolish
the Council Tax and replace it with a Scottish Service Tax and
its decision to oppose this Bill. UNISON believes:
Property is a good proxy for wealth. Unlike other
forms of wealth UK homes are impossible to hide in tax shelters
or foreign banks. It is an important part of the basket of taxation.
A property based tax is a simple way to ensure the well off pay
their fair share.
A Service Tax will move more of the burden of
taxation onto those in work increasing the financial pressure
on families. Many people on lower incomes have higher disposable
incomes for example if they own their homes outright and have
no dependants.
The claim that most people will be better off
under a Service Tax assumes single earner households. Many two-earner
households would in fact be worse off under the current SSP proposal.
The decision about the level of any tax is a political one and
is not based on what is being taxed. The same is also true about
the promised yield of the Service Tax.
Inheriting property ensures inequalities are maintained.
Taxing property is a therefore key to reducing inequalities in
the long term.
The Service Tax proposed by the SSP will break
the link between those who use and pay for public services locally
and their councillors.
UNISON does not believe that that the current Council Tax is
perfect.
- Council Tax Benefit needs reform to protect low paid workers
adequately
- Current bands need reformed
-
Regular revaluation is essential
-
-
Business rates should be returned to local
authority control.
-
Grant support should be allocated with minimum
ring fencing.
-
Level playing field between local authority
borrowing and private finance is essential.
Conclusion
UNISON believes that the Council Tax provides
a stable yield for local councils at low administrative cost.
It should be reformed to make it more progressive. The non-property-based
alternatives like the Service Tax are administratively complex
and easier for the wealthiest members of society to avoid.
They would not make our tax system fairer. We urge MSPs to
reject this Bill.
For further information contact:
Dave Watson, Scottish Organiser d.watson@unison.co.uk
Tel. 07958122409
Scottish
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