Councils could get share of income tax revenues

Councils could get a share of income tax in plans to offset swingeing budget cuts.

Nicola Sturgeon has said the SNP will consider boosting council coffers with a share of income tax revenues.

The First Minister told an audience in Edinburgh last night that the plan could help boost economic growth by giving local authorities a vested interest in raising income tax receipts.

She also hinted that the SNP will introduce a “more progressive” council tax if they win the Holyrood elections on May 5.

A cross-party commission on local government funding said the current system in Scotland “must end” and suggested three alternatives based on land, property or income.

Ms Sturgeon told the David Hume Institute: “The changes to council tax that we will propose are part of a longer-term plan.

“In particular, we will discuss with local authorities how we can assign a share of income tax revenue to their funding.

“That means that if councils succeed in boosting economic growth, and consequently income tax receipts, they will share in some of the benefit.

“And it also means that local government funding will be more broadly based. Income tax, and a more progressive council tax, will both play an important part.”