LOCAL authorities should have the power to scrap council tax in their areas, a think tank says.
In a submission to the Scottish Parliament’s Local Government and Communities Committee, Reform Scotland says our “narrow version of devolution” has failed to deliver the benefits to the regions.
The body says town halls must take charge of local taxation to allow them to run services, sustain economies and find solutions for their “different challenges” on demographics, infrastructure and resources.
The call responds to an inquiry into the long-term financial stability of local government.
The 2018 Budget included provisions to allow councils to introduce new taxes such as the workplace parking levy and the tourist tax, but Reform Scotland says these are minor compared to non-domestic rates and the council tax. It stated: “One-size-fits-all centrally directed policy solutions will not and cannot work. Councils need to be able to tailor solutions to local need.”
Director Chris Deerin commented: “The Scottish Parliament is 20 years old this year, but the truth is that what we have seen since 1999 is only a narrow version of devolution.
“Power has been devolved from Westminster to Holyrood, but it has been stockpiled in Edinburgh since then, with all political parties culpable.
“Devolution will remain incomplete until Holyrood relinquishes taxation powers to local authorities in order for them to be able to react to local circumstances, which vary wildly in different parts of the country.
“This should include council tax – a local tax in name only. The council tax freeze, and since then the cap in increases, ties the hands of local authorities. They should be given total control over it, and be able to cut it, increase it, scrap it and replace it. Only this will future-proof local government against local financial risks.”
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