E-mail hint of SNP's plans for property tax

Published on Sunday 1 November 2009 21:13

SNP ministers may be considering a U-turn on one of the party's flagship policies from the 2007 election, according to papers which suggest civil servants are working on a property tax.

E-mails obtained by The Scotsman under freedom of information legislation suggest that finance secretary John Swinney's department may be looking at replacing the SNP's pledge of raising local tax through income with one based on property.

In February Mr Swinney shelved a plan to bring in a local income tax (LIT), which would have seen a centrally fixed rate of 3p in the pound to replace the council tax, because "there was not enough support in parliament".

The proposal met with opposition from organisations across Scotland, including business groups, trade unions and councils. Despite the opposition, Mr Swinney said LIT would be in the party's 2011 election manifesto.

But an e-mail from Scottish Government civil servant Caitriana Burton sent to Joan Hewton of the Lothian Valuation Joint Board on 22 July shows officials have been comparing the council tax and a property tax.

Ms Burton wrote: "I have a query on the council tax side of things that I wonder if you might be able to help me with some direction. Our policy teams are again looking at variations on council tax and want to do a comparison of council tax with a property tax."

She went on to ask for data for the Scottish Government's policy teams to run comparisons.

The property tax may be similar to one mooted by the Labour Party this summer, more closely linked to the value of a property than the current council tax. The e-mail also suggests the Scottish Government is considering the Conservative proposals of changing the council tax rates, which currently include discounts for pensioners.

A Scottish Government spokesman said: "The request made was for the purpose of assessing other parties' proposals, it is not a government proposal."

The request was made a month before Labour revealed any details of their proposal for a property tax.

Labour leader Iain Gray said: "This is not only a sign of the SNP's hypocrisy and incompetence but a complete shambles."

The Scottish Government spokesman added: "There is no question of this government considering any reform to local taxation other than the introduction of a fairer local tax, based on the ability to pay."