Nicola Sturgeon announces vision for future of local taxation

Nicola Sturgeon will today announce the SNP’s vision for the future of local taxation.

Ahead of the speech the Scottish Government said it plans to give councils incentives to boost economic growth by assigning them a share of income tax revenues.

The Commission on Local Tax Reform reported at the end of last year, outlining three possible models: a tax on property, a tax on land, or a tax on income, with the cross-party group suggesting a combination tax may be the most effective. Sturgeon confirmed the proposals would “build on the findings of the Commission’s report”.

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Speaking ahead of the event, the First Minister said: “Over nine years, the council tax freeze put in place by this Government has helped to keep bills affordable during difficult economic times while ensuring councils are properly funded to provide public services.

“When I established the cross-party Commission on Local Tax Reform in 2015 I wanted to ensure that our commitment to fully understand the impact of taxation on Scottish communities was fulfilled.”

The SNP’s 2016/17 budget included a cut of £350m to “resource support” for councils, with the council tax freeze kept in place for the ninth year in a row.

Council umbrella body COSLA said the cut amounts to 3.5 per cent of local authority budgets.