SNP has a tax shock for a quarter of students, warns Labour

Published on Saturday 31 May 2008 19:59

TENS of thousands of students who do not pay council tax could be charged under the SNP's scheme for a local income tax, according to Labour.

Opposition MSPs have highlighted figures published by ministers, which show that a quarter of Scottish students in full-time education would be liable for the new charge, because of the amount they earn in part-time jobs.

The Nationalists' plan for a local income tax of up to 3p in the pound has been at the centre of controversy over claims that the levy would penalise working families, and that it might not even be legal for the Scottish Parliament to impose such a charge.

In a Scottish Parliamentary written answer, which was answered by Finance Secretary John Swinney, the Scottish Government said: "The total number of full-time students in Scottish institutions in 2006–07 was 228,795. Initial estimates, using earnings-related data for full-time students, indicated that perhaps around three-quarters of these would not earn sufficient to bring them over the level of the personal (income tax) allowance.

"The number who would be liable at the time of introduction of a local income tax would, of course, depend on the level of the personal allowance at that time."

According to Labour, the answer implies that 55,759 Scottish students would be liable for the local income tax.

Claire Baker, Scottish Labour's higher education spokeswoman, said: "The SNP seems to be letting students down left, right and centre.

"Alex Salmond has tried to claim in the past that his proposals for a local income tax will not hit students, but these figures show the truth.

"Currently less than 3% of full-time students are liable for council tax, but under the SNP's plans this will rise to a quarter – over 50,000.

"But ministers rejected the criticisms. A Scottish Government spokesman said: "The vast majority of full-time Scottish students will pay absolutely nothing under a local income tax, because they earn less than the income tax threshold.

"A student receiving the minimum wage would have to work more than 21 hours a week for 52 weeks before having to pay."