Dundee SNP

LABOUR FAIL TO SUBMIT ANY ALTERNATIVE TO CONSULTATION – “NO IDEA, NO POLICY, NO CREDIBILITY”

SNP MSP Joe FitzPatrick today welcomed the results of the Scottish Government’s consultation to scrap the unfair council tax with over half of all individual respondents supporting the SNP’s proposals for a Local Income Tax as fairer than the Council Tax.

The consultation responses also support the retention of council tax benefit monies in Scotland, and show the failure of Labour to put forward any suggestions on one of the dominant issues in Scottish politics.

Dundee West MSP and member of the Scottish Parliament’s finance committee Joe Fitzpatrick;
“The SNP is committed to scrapping the unfair council tax – a position which carries majority support in the Scottish Parliament – and replacing it with a fair local income tax based on the ability to pay.

“This consultation shows people and organisations across Scotland support the SNP’s plans to make local taxation fairer.

“The SNP’s proposals have won strong backing with the majority agreeing that council tax benefit money should be retained in Scotland not put back in the pocket of the treasury.

“The astonishing thing about this consultation is the absolute failure of the Labour Party to offer up an alternative. Only yesterday, Andy Kerr attacked the Tories for failing to offer any ideas to the Calman Commission on tax powers for the Scottish Parliament. He said that it was ‘not credible not to submit any view whatsoever on what is one of the biggest questions in Scottish politics’ (Sunday Times, 23 November). Yet on the major issue of local taxation to fund local services, Labour have no idea, no policy, no credibility, and made no submission.

“As a leadership candidate Andy Kerr said he would immediately signal a desire to replace the council tax whilst Iain Gray said he would “replace or reform” council tax – three months on Labour’s leader and Labour’s finance spokesperson have offered nothing.

“Labour’s credibility on the council tax abolition is in tatters. Their new leader has admitted their old proposals were made “on the back of a fag packet”. Now they don’t even have that.

“The Council tax is unfair and unpopular. This consultation shows there is real support for scrapping the council tax and introducing a local income tax based on ability to pay. It is now for parties across Parliament to see sense and support scrapping the council tax.”

Students in Dundee have welcomed the Scottish Government’s proposal to exempt full-time students from paying for Local Income Tax.

John Swinney yesterday announced that the Scottish Government is actively considering representations on the proposal.

MSP for Dundee West Joe FitzPatrick said; “I welcome this announcement and hope the Government is able to offer support to students when council tax is finally scrapped and replaced with a fair system of local income tax.”

Gregor Murray, Convenor of Dundee Student Nationalist Association, said: “This news will be welcomed by students and student organisations across the country.

“Replacing Council Tax with a tax based on the ability to pay will make local taxation fairer for everyone.

“Although some students will not pay Local Income Tax, because they do not work, 67% of students in Scotland work to fund their studies or living costs while at College or University.

“According to the first annual Halifax Student Finances Survey, students in Scotland earn an average of £6198.

“When Gordon Brown and the Labour party doubled the tax on students by abolishing the 10p tax rate, they pushed tax bills for the average working student up from just under £100 to nearly £200 – a price most working students can ill afford.

“In contrast, the SNP Government is looking at the possibility of exempting those students from local taxation in Scotland, having already scrapped the graduate endowment fee. The difference in the attitude of Governments north and south of the border will not be lost on students in Scotland.”

SNP MSP and Finance Committee member Joe FitzPatrick today welcomed comments from John Swinney that the Scottish Government is actively considering exempting full-time students from paying for Local Income Tax.

Speaking in the debate on the Government’s proposal to abolish the unfair council tax and replace it with a local income tax based on ability to pay Cabinet Secretary for Finance John Swinney said;

“We are actively considering representations that full-time students be exempt from paying local income tax.”

MSP for Dundee West Joe FitzPatrick, who spoke in the debate said;

“Today’s announcement that the SNP Government is considering exempting full-time students should be welcomed by students and student organisations across the country.

“Scrapping the unfair council tax and replacing it with a tax based on the ability to pay will make local taxation fairer for everyone.

“Scotland’s students have already seen the graduate endowment scrapped by the SNP. With more students working and paying income tax this possible exemption from local income tax is another sign of the SNP Government’s support for Scotland’s students.

“According to HBOS students in Scotland earn an average of £6198. When Gordon Brown and the Labour party doubled the tax on students they pushed tax bills for the average working student up from just under £100 to nearly £200 – a price most working students can ill afford.

“In contrast the SNP Government is looking at the possibility of exempting those students from local taxation in Scotland.

“This is a welcome announcement and I hope the Government is able to offer support to students when council tax is finally scrapped and replaced with a fair system of local income tax.”

SNP MSP Joe Fitzpatrick today highlighted figures produced by the GMB Union which show that £112 million of council tax is unpaid for 2007-08 leaving a black hole in council finances.

Mr Fitzpatrick said that scrapping the unfair council tax and replacing it with a local income tax based on the ability to pay would reduce problems of non-payment as money would be collected directly through the income tax system and lift the burden from councils of chasing unclaimed arrears.

Mr Fitzpatrick said; “The SNP plans to abolish the unfair council tax and replace it with a local income tax based on the ability to pay will see 85,000 people lifted out of poverty and leave eight out of ten households either better or no worse off than they are under the council tax.

“Councils across Scotland are currently owed £112 million in council tax arrears for the last year alone.  For the councils this is a black hole they now have to struggle to fill by employing sheriff officers to chase arrears – often from people who will be financially struggling to meet these  payments.

“Instead of leaving individuals to navigate the often complex council tax system themselves and leaving councils with the long running problem of collecting arrears the SNP’s proposals will ensure those who can afford to pay will pay and that there will be no need for people to navigate the bureaucratic nightmare of paying council tax anymore.

“As a constituency MSP I hear regularly from people who are being pursued for money they have paid, or that they often do not actually owe.

“Scrapping the council tax and replacing it with a local income tax based on ability to pay will end this ridiculous situation and restore fairness to tax payers across Scotland.”

Commenting on the Legislative Programme announced by the First Minister in the Scottish Parliament today (Wednesday) SNP MSP Joe FitzPatrick, a member of the Finance Committee, welcomed the introduction of a bill to abolish the unfair Council Tax.

Mr FitzPatrick said:

“This will be a very popular move by a Scottish Government which is reflecting the mood of the people of Scotland – particularly at a time of rising household bills.

“The SNP Government has already delivered a Council Tax freeze so that more families can keep more of their own money at such a time of growing financial burdens.

“Council Tax went up 60% under Labour and it is no longer tenable to defend it as a fair tax. So it is no wonder a majority of people support the introduction of a system based on ability to pay and Labour’s leadership contenders are all over the place with no clear alternative.

“The SNP has that alternative – a system on ability to pay. The SNP’s proposals mean a £280 million tax cut for the people of Scotland and will clearly have major benefits for families concerned about financial hardship. Under the SNP’s proposals the overwhelming majority will see their bills cut.

“Perhaps that’s why Labour’s defence of the Council Tax is crumbling as not only do a majority of Scots voters support the Local Income Tax, but a majority of Labour voters also do.”