Scottish Daily Mail

NOW YOUR COUNCIL TAX BILL MAY TRIPLE

- By Rachel Watson Deputy Scottish Political Editor

SCOTS families could see their council tax bills triple under a radical new plan.

First Minister Nicola Sturgeon yesterday revealed that she is ready to consider crippling tax hikes proposed by the Scottish Greens, in a desperate bid to gain support for the SNP’s Budget. This could mean that the annual bill for a family living in a band H home would rise from £2,298 to £6,153.

The Greens have warned the SNP Government that they will not support any spending plans for next year unless there is a clear commitment to scrapping council tax – and replacing it with a punishing levy.

The proposals would mean tax for those living in homes in band D and above will soar, with bills for those in band G doubling and band H tripling.

Such a move would be another raid on hard-pressed family finances after hundreds of thousands of middleinco­me workers were this week hammered with substantia­lly higher rates of income tax than those on the same pay south of the Border.

The proposed residentia­l levy would be based at around 1 per cent of a property’s value. The SNP had previously committed to considerin­g the

scheme, following pledges to scrap council tax in the party’s 2007 and 2011 manifestos. It has, however, since backed away from the Left-wing plan.

Greens co-convener Patrick Harvie last week claimed that negotiatio­ns had broken down between his party and the Scottish Government over Finance Secretary Derek Mackay’s refusal to commit to replacing council tax.

But Nicola Sturgeon yesterday stepped in to try to secure backing for the Budget.

The Greens have helped the minority SNP Government pass its financial plans in the past two years, but it appeared that Mr Harvie was ready to walk away from talks because Mr Mackay had not committed to his proposal.

Yesterday, Miss Sturgeon admitted it was extremely ‘likely’ the two parties would reach an agreement. The First Minister said she was happy to have ‘constructi­ve discussion­s’ with any party at Holyrood, but added: ‘I think we are more likely to have them with Patrick Harvie and his colleagues than with other parties in the chamber.’

Miss Sturgeon said she would be open to radically overhaulin­g council tax – despite her past refusal to give such a commitment.

She added: ‘I know there have already been discussion­s between Patrick Harvie and his colleagues and the Finance Secretary about tax reform, and Derek Mackay is keeping me updated on that.

‘We expect those discussion­s to continue, and I very much hope we can come to an agreement that sees a commitment made to local tax reform and a greater commitment to the devolution of tax powers to local authoritie­s.

‘There is a willingnes­s to do that, and I’m sure we will have between now and the final votes on the Budget lots of very productive discussion­s.’

A Residentia­l Property Tax, as proposed by the Greens, would set the levy at around 1 per cent of a home’s value.

A policy document from the 2016 Holyrood election suggested a family in a band D home paying around £1,150 council tax at the time would face a £1,500 bill under the scheme. There would be a five-year transition period. Scottish Tory local government spokesman Alexander Stewart said: ‘We know the SNP and the Greens are preparing to stitch up a deal. We know the Greens want to introduce yet another new tax on Scottish households.

‘It now appears Nicola Sturgeon is preparing to do their bidding in order to get her Budget over the line.

‘There is no need to do this: the SNP has the funds this year to give a fair deal for taxpayers.

‘This is yet another example of how the SNP and Greens between them appear determined to provide a pay-moreget-less government.’

Speaking about the SNP’s Budget proposals – before Miss Sturgeon made her pledge – Mr Harvie said: ‘There was nothing about genuine steps towards a replacemen­t for the broken, unfair council tax – which the Scottish Government claims that it wants to end.

‘The Scottish Government keeps saying it is open to dialogue on those issues, but we have been trying to have that dialogue since the end of the last Budget process at the start of this year.’

WHEN SNP ministers are being warned about the damaging impact of their tax policies by their own advisers, surely it is time for them to finally listen.

The Scottish Fiscal Commission has provided a stark warning that the growing tax gap between Scotland and the rest of the UK will discourage skilled workers from moving here, or force others to relocate south.

They also said people could be put off vying for promotions if it means being snared by higher rates of income tax and National Insurance.

Will this warning mean ministers will finally listen and address their concerns? Doubtful. After all, business leaders had spent much of this week pleading with them not to widen the tax gap between Scotland and the rest of the UK.

The Institute of Directors, which represents bosses who employ more than 200,000 staff in Scotland, gave a clear warning that a growing tax gap would hamper attempts to get skilled workers to move here, but this was swatted aside by Finance Secretary Derek Mackay when he unveiled his Budget on Wednesday.

As if the income tax policies were not bad enough, there was a clear indication yesterday that there could be even worse to come, as Nicola Sturgeon said she was willing to consider punishing council tax reform.

It is enough to send a shudder down the spine of hard-working Scots who just want to get by but keep seeing their wallets raided by politician­s.

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