Council tax back on the agenda

THE scrapping of the council tax in Scotland was back on the cards last night following a shake-up of local government funding ordered by George Osborne.

The Chancellor is to pass responsibility for around 400 million in council tax benefit funds to the Scottish Government, allowing it to decide how the money should be spent.

The move removes one of the obstacles to SNP plans for a local income tax in Scotland to replace the council tax.

The Nationalists confirmed last night that they were already in talks with the Treasury about the cash, and said that, if re-elected next year, they would press ahead with moves to scrap the council tax.

Any reform would be controversial, with those on higher incomes likely to pay far more for council services than they do at present.

Furthermore, there are fears that the tax would fail to provide enough money for councils, particularly when incomes have been depleted by the financial crisis.

Under their previous plans, laid out prior to the 2007 Scottish elections, the SNP said that they would charge people a 3p rate.