This item was published during the term of a previous administration that ended in April 2007
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Local taxation review
16/06/2004
The Independent Review of Local Government Finance was
launched today
It will examine different forms of local taxation -
including reform of council tax.
The Review will look at the impact of any changes,
including the implications for the rest of the local
government finance system and any wider economic
consequences.
The membership of the Review team, reporting to
Ministers, will be announced to Parliament shortly.
Minister for Finance and Public Services Andy Kerr
said:
"The focus of the Review will be on local taxation and
will examine the impact of any possible changes, including
reform of the council tax. It will be thorough and
considered, the most serious examination of local taxation
ever undertaken in Scotland in recent times.
"This independent Review fulfils our Partnership
Agreement pledge and highlights our ambitious approach to
public services, built on investment, reform and
modernisation."
Deputy Minister for Finance and Public Services Tavish
Scott said:
"Local authorities are at the frontline and ensuring the
people of Scotland get the level of public services they
expect and deserve. This independent Review will examine
different forms of local taxation.
"All those who have something to say should bring the
details of their proposals to the Inquiry table, argue
their case and see those plans scrutinised. The time for
slogans has passed. The time for details has arrived. To
win change, participants will need to be thorough,
persuasive and thoughtful."
Remit of Review
To review the different forms of local taxation,
including reform of the Council Tax, against criteria set
by the Executive, to identify the pros and cons of
implementing any changes to the local taxation system in
Scotland, including the practicalities and the implications
for the rest of the local government finance system and any
wider economic impact, and to make recommendations.
Core issues for systems of Local Taxation
The issues that the review will need to examine for each
system are:
* Effect on the economy /economic growth
* Ability to pay / fairness
* Ease of avoidance / collectability
* Stability / predictability
* The relationship to the Benefits system
* Balance of Funding
* Buoyancy
* Accountability
* The cost of collection
* Who collects the tax
* Shift to a new system: timing and transitional
arrangements
Systems to be examined
* Council Tax (current and reformed)
* Local Income Tax (locally and nationally set)
* Land Value Tax
* Options for local business taxation
* Any other appropriate models
The associated issues are:
* Business rates
* The impact on the current GAE/RSG system
* The mechanism for distributing grant between
authorities.
* The relationship to domestic Water and Sewerage
charges
* Reserved issues