Scottish Daily Mail

Councils need more power to raise own tax, says think tank

- By Rachel Watson Deputy Scottish Political Editor

COUNCILS should be given more control over finance in a bid to stop ‘centralisa­tion’ of powers, according to a leading think tank.

Reform Scotland believes local authoritie­s should have full responsibi­lity for local taxation, including the ability to scrap levies and introduce new ones.

Its proposals for an overhaul, set out in the Blueprint for Local Power ahead of next month’s local elections, would require new legislatio­n.

The document states that local authoritie­s should be responsibl­e for all areas not specifical­ly reserved to Holyrood, with tasks carried out at ‘the lowest level practical’.

Councils should provide ‘clear and transparen­t’ informatio­n on their activities to ensure proper accountabi­lity. The paper

‘Exercise power and take responsibi­lity’

states: ‘The only way local priorities and circumstan­ces can be taken into account is if council tax is fully devolved.’

Council tax in Scotland had been frozen since 2007, but this year the SNP allowed local authoritie­s to increase it by a maximum of 3 per cent.

Most councils, including Edinburgh, Glasgow and Fife, increased tax by the maximum following cuts to their budgets from the SNP Government.

Reform Scotland also believes local authoritie­s should be free to implement their own area-specific business rates.

Reform Scotland director Geoff Mawdsley yesterday said: ‘If there is any point in having a level of local government, and if we want it to mean anything, then we have to allow it to exercise power and with it take responsibi­lity. That is why we are proposing legislatio­n to cement local authoritie­s’ place in the spectrum of governance in Scotland.’

For councils to carry out key work in areas such as education and social care, they should be able to raise more of their own money, he said. At present, they raise £1.40 of each £10 they spend.

‘Council tax and business rates should be devolved to local authoritie­s, and thereafter they should be able to introduce new taxes, or scrap existing ones, to fit local circumstan­ces,’ he added.

The SNP Government has been repeatedly criticised over the centralisa­tion of powers, including the formation of Police Scotland in 2013 through merging forces.

Concerns have also been raised over the governance review into education, with critics fearing this could see the government taking more control over education.

Graham Simpson, Scottish Conservati­ve local government spokesman, said: ‘We believe that services are best delivered locally, which is exactly the opposite of the SNP approach.’

The SNP has claimed that the Community Empowermen­t Act will put ‘additional powers into the hands of communitie­s’ – allowing people to ‘hold their local authority to account’.

A Government spokesman said: ‘We have committed to a journey of reform to make local taxation more progressiv­e and local authoritie­s can already reduce nondomesti­c rates as they choose.’

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