Sunday, 7 September 2008

Portillo agrees with Salmond over local income tax

I notice that Michael Portillo has come out in favour of local income tax.
Earlier this week the SNP announced as part of its fiscal policy that it would scrap council tax and introduce a local income tax in its place.

Portillo writing in the Sunday Times this morning says that

The debate may well be confined to Scotland and to how it will shape attitudes to independence there – but it should not be. If we altered the way local authorities raise their money, we would change the nature of our country for the better


Portillo brings out the two arguments for it that it allow a greater degree of social justice and that more importantly

raising the money in that way would enable local government to grow in scope and importance. By comparison with almost every country I know, we suffer from chronically weak local government and from central government that is too powerful

1 comment:

Scott @ loveandgarbage said...

Sadly Salmond's policy is not a local income tax, but a nationally set rate - which would then be allocated to the local authority. The SNP proposal then does little to support the objective that Portillo advocates - indeed, this, coupled with the current freeze on council tax in Scotland, and a concordat which transfers to the local authorities the role in implementing SNP manifesto policies, without allowing the local authorities to determine how to raise money to meet these objectives suggests that the SNP is actually undermining local government, rather than strengthening it.