Opinion split on the future of council tax

Opinion is split about how local taxation should be reformed in Scotland, according to an independent commission.

The Commission on Local Tax Reform – established jointly by the Scottish Government and the Convention of Scottish Local Authorities (COSLA) – has today published analysis of more than 200 responses it received as part of its written call for evidence.

More than two-thirds thought the current system of council tax was “unfair”, but opinion was divided on the best way of achieving reform, with a reformed local property tax, local income tax and land value tax the three main options highlighted.

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Marco Biagi, Minister for Local Government and Community Empowerment and co-chair of the commission, said:  “The findings of our formal call for evidence suggest very strongly that there are a majority of people in Scotland who agree that the current system of council tax is unfair and in need of reform.

“However, what is also clear is that there are a wide range of opinions as to what a potential replacement for the present system would look like and operate, echoing many of the views that we have heard from the more than 4,000 people who have engaged with us so far.”

According to the commission’s analysis, many felt the current council tax is regressive, with poorer households paying proportionately more than richer households and not clearly linked to the ability to pay.

There was also a feeling that there needed to be a stronger link with local democracy, with more tax raised at a local level and a greater understanding that council tax and non-domestic rates presently account for a small proportion of overall local government funding.

Councillor David O’Neill, President of COSLA and commission co-chair, added: “It is clear that there are a lot of different opinions out there as to what might constitute a fairer way of paying for local government.

“By engaging with as many people and organisations as possible, through this call for evidence, questionnaire and public engagement events, we are making sure that the views of people the length and breadth of Scotland are a fundamental pillar of our efforts to set out a range of alternative tax models that can be considered by whichever government is formed next May.”