Most Scottish householders will be better off under plans to abolish council tax and introduce a local income tax, finance secretary, John Swinney, has claimed. Speaking at the official launch of a consultation on the proposals, Mr Swinney said the proposals would be the biggest tax cut in Scotland in a generation, with those on low and middle incomes better off by an average £350 to £535 a year. The four-month consultation is being watched closely by local government leaders in England and Wales, although it has already run into widespread criticism in Scotland, and uncertainty over whether it will be collected by HM Revenue and Customs. Mr Swinney said: ‘Working with councils, we have already delivered a council tax freeze that will shelter vulnerable households from further increases – but the system is fundamentally wrong. Band D council tax has risen by 60% since 1997. It is time for a new approach. ‘Everyone will be affected by the abolition of the council tax, and I want to hear people's views. We cannot deliver this in isolation, and we will listen to the people of Scotland before acting on our proposals.' Figures published by the Scottish Executive show that a 3p local income would raise some £1.5bn in 2010/11 – almost £1bn less than the forecast £2.473bn expected to be collected by council tax. Scottish Conservative Party leader, Annabel Goldie called for reform of council tax and said it should not just be frozen but cut for everyone, while Labour leader, Wendy Alexander, insisted: ‘The 3p rate will cover only half the amount of services currently provided by local authorities. ‘To maintain current services, the 3p cap will have to come off.'
