Swinney puts plans to scrap council tax back on the agenda

Published on Friday 18 July 2008 13:11

FINANCE Secretary John Swinney today pledged to press ahead with plans to scrap the council tax.

Scottish Government plans to replace it with a local income tax have met with resistance from business leaders and political opponents.

The deadline for submissions to a consultation on the local income tax closed today and Mr Swinney said he expects a Bill to come before Parliament in 2009/2010.

The tax would then come into force in 2011 – if passed at Holyrood.

"The public were frustrated by the fact that there was no change under the last administration for eight years," Mr Swinney said.

"An unfair council tax was allowed to carry on – this administration is doing something about it."

Four out of five households will be better off under the local income tax plans, according to the finance secretary, who said the Scottish Government would reflect on the "points of detail" raised by organisations in the consultation.

The local income tax has met with resistance from the CBI, the Institute of Directors and the Institute of Chartered Accountants of Scotland.

The Federation of Small Businesses this week said it made "bad business sense" and could harm Scotland's competitive edge against England.