THE Scottish Government has now passed Stage 1 of its budget for the next year. Incredibly, ministers have had the gall to describe it as “progressive”.
Last month, I wrote in this column about those key “progressive” proposals: a £200 million cut to the housing budget during a homelessness emergency and, in the words of local government association COSLA, a failure to focus on “the root causes of poverty, particularly its impacts on children”.
Of course, the SNP has pointed to its proposal to raise income tax on those earning over £75,000 a year, but this is undermined by its regressive and unfunded council tax freeze.
On the surface, it might appear understandable why the Scottish Government would prevent councils from hiking rates during a cost of living crisis.
Scottish Labour agrees that raising taxes on ordinary people should not be the priority when people are trying to keep their heads above water.
But we have consistently said that any freeze must be fully funded by the Scottish Government. According to the Institute for Fiscal Studies, the assertion that it already has been is “misleading”, whilst reports suggest civil servants were only given seven hours’ notice.
After years of stripping local services to the bone, it is clear the funding provided to councils in this budget will not be enough to stop more cuts.
In the words of Inverclyde Council leader Stephen McCabe, the planned freeze “will starve public services, this council’s services and other public services, of potentially £300m or possibly more, of funding”.
This will affect everything from schools to libraries to roads to swimming pools. After years of austerity, it begs the question: what is there even left to cut?
The SNP could of course develop alternatives.
In 2007, the party pledged to scrap council tax, described it as “unfair” and pledged to “introduce a fairer system based on ability to pay”.
Now, 17 years later, the SNP have not only failed to scrap it or develop a replacement – they’ve failed to even revalue the rates being used, which are linked to the value of properties in 1991.
Critics will say that revaluation is complicated, but former Green MSP Andy Wightman’s modelling suggests that revaluing could be achieved via simple secondary legislation and up and running within two financial years.
Last week, the Scottish Trades Union Congress published an open letter demanding rates revaluation, signed by leading charities and even the SNP’s own trade union group.
And there are other mechanisms that could be explored. Tor example, the Scottish Government has repeatedly refused to rule out exploring the scope of land value taxation.
Political ideas are there, just not at Bute House.
It is time to bring local taxation into the 21st century and make it fair and sustainable for everybody.
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