Expert accuses SNP of bending truth on tax

Published on 17/06/2008 22:07

A LEADING Scottish economist has accused SNP ministers of using misleading data to justify introducing a local income tax.

Professor Arthur Midwinter, who until last year was the adviser to Holyrood's finance committee, has suggested the local income tax proposals are even worse than the poll tax.

In a paper for the committee's inquiry into local taxation he described them as "the least rigorous set of proposals for local taxation since the community charge Green Paper in 1986." Although Prof Midwinter is now paid as an adviser to the Scottish Labour leader, Wendy Alexander, the paper is intended as an independent analysis of the SNP's proposed 3p local income tax to replace the council tax.

He has accused the SNP of exaggerating the unfairness of the council tax with a claim that it rose by 60 per cent between 1997 and 2007.

He said in reality the increase was 47 per cent, with the average band D bill going up from 783 to 1,149.

He also questioned why the SNP had first said there would be a shortfall of 450 million, but then changed it to 281 million without explanation. He added: "The SNP also claimed that 90 per cent of households would gain from the change. Now it is the 'average household in nine out of ten income deciles'."

The SNP has dismissed Prof Midwinter as a mouthpiece for Scottish Labour.