Explain real reason for ditching local income tax plan, SNP told

Published on Thursday 12 February 2009 21:12

ALEX Salmond's decision to scrap his local income tax policy was mired in confusion last night after it emerged that ministers had completely changed their minds over the reason for the sudden move.

When John Swinney, the finance secretary, announced the U-turn on Wednesday, he said it had to be done because there was not a parliamentary majority for the policy and because of an expected 500 million cut in the Scottish budget next year – a cut which would make the policy unaffordable.

But it emerged yesterday that this was not the stance taken by Mr Swinney last November, when he decried the expected cut in the Scottish block grant but insisted the local income tax would go ahead regardless.

The Tories' Derek Brownlee seized on this confusion to berate the Scottish Government.

He said: "The Scottish Government has known for months about Labour's cuts and trying to cite them as the reason they have dropped local income tax is just not on. As we all know, the real reason is that local income tax was ditched because the entire policy is a dog's breakfast."

Reports also emerged yesterday of slight discontent within the Cabinet over the likely effects of the decision.

It is understood at least one minister raised concerns that the U-turn might not play well for the SNP across Scotland.

However, it is also understood that, after a discussion of the merits of the policy and its effects on the SNP's reputation in the country, it was backed wholeheartedly by the Cabinet.

The issue also dominated First Minister's Questions yesterday, with Mr Salmond forced on to the defensive by all three main opposition leaders over the income tax U-turn.

Labour's Iain Gray even tore up a copy of the SNP election manifesto and invited Mr Salmond to do likewise to the rest of his policies, particularly his cornerstone policy of independence.

Mr Salmond, however, hit back at all the party leaders, insisting not only that he would not abandon his policy of independence but that every party should back the referendum policy, so that the Scottish people would have the chance to decide their own future.