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