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Ministerial foreword
For too long the people of Scotland have faced the burden of high and unjust local taxes. Now is the time for a new approach.
The abolition of the unfair Council Tax and its replacement with a fairer local tax based on ability to pay forms a key part of our vision for a flourishing Scotland. The Government believes that the fairest solution is a local income tax; a commitment on which we were elected to office.
We are proud to form Scotland's first minority government, and as a minority government we must convince Parliament and wider society that our approach is the correct way forward. The first step in this process is a consultation that sets out our plans in detail and invites comments on them. This consultation also opens up discussion on alternative approaches. As a minority government we are happy to hear the ideas of others and have our own position tested in open public debate. I am eager to listen to all views and welcome the chance to engage constructively and build consensus on a way forward.
The move to our proposed local income tax will take time to implement, and in the interim period I have signed an historic agreement with COSLA, which represents Scottish local authorities, to freeze Council Tax levels throughout Scotland. The Council Tax freeze will work to shelter vulnerable individuals from further Council Tax increases as we work to address longer-term reform. It will also protect families and individuals from another increase in household costs at a time when fuel and food prices are rising. Our proposals are part of a number of important taxation reforms that we have undertaken to put before Parliament and the people of Scotland. Whilst moving towards fairer taxation for individuals, we will also be pursuing a fairer environment for businesses.
These proposals represent a substantial overall reduction in taxation in Scotland. It is vital that taxes are lower and fairer to create a more prosperous country. This Government's fresh approach to taxation in Scotland is a cornerstone of our plans to create wealth and enable people to share fairly in that wealth.
Our proposals for a local income tax will need the support of the Scottish Parliament, local authorities across Scotland and Government departments elsewhere in the United Kingdom. We cannot deliver this in isolation, and will need the input of our colleagues across the public sector to make these proposals a reality. I welcome comments on our proposals from all the bodies involved. I am especially keen to hear the views of members of the public who will be affected most by our proposals.
The Government wants taxation in Scotland to be fairer and based on ability to pay. I believe that a local income tax will support this aim and I look forward to the people of Scotland reaping the benefits that this change will provide.
John Swinney
Cabinet Secretary for Finance and Sustainable Growth
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