SNP LAUNCH RADICAL INCOME TAX PLAN

This was the headline on Friday 5 March as the SNP Leader, John Swinney MSP, published detailed proposals of what it would mean if the Council Tax was abolished and a Local Income Tax introduced.  Why do the SNP believe this is necessary?  Well the problem with Council Tax, originally introduced by a Conservative Government, is that it takes no account of ability to pay and puts a ceiling on the amount that the richest have to pay.  It fails to account for those on fixed incomes and low wages and means that those who are poorer pay a much greater proportion of their income to fund council tax than those who are better off.  Since 1997 when Labour came to power council tax has increased by around 50% to a Scottish Band D average of £1059.  On average for the year 2001-2002 people on the lowest incomes paid 4.8% of their income in council tax while those on the highest incomes paid 1.4%.

Some will say that people on low incomes who live in houses with a high council tax should move to houses where they can afford to pay the council tax; some will say that council tax benefits deal with inability to pay.  But it’s not as easy as that.  The fixed incomes that many retired people live on are made up of the state pension plus an occupational pension. The occupational pension need not be large to take them above the council tax benefit level and they can find themselves paying a ridiculously large proportion of their income on council tax.  

So what do the SNP say?  The revenue raised currently by council tax to help fund local government is around £1.6 billion.  (Council tax accounts for only a fraction of local authority spending.  Glasgow tell us that Government grants meet 82% of total planned this year with council tax meeting the rest.)  If council tax is abolished we still need to raise that amount by taxation that is fair and progressive and based on ability to pay.  It must be local, putting communities in control of their own revenue and it must be efficient. 

The easiest way to ensure that a tax takes account of ability to pay is to base it on income.  The SNP is clear that there will be winners and losers in the change to a local income tax but the scheme proposed ensures that those on low or fixed incomes are not the losers as they are at the moment.

It is vital that each of Scotland’s 32 local authorities is able to take responsibility for setting its own rate of local income tax.  The SNP proposal protects local accountability and the principle of local government.

A local income tax can easily bolt-on to the current national income tax system, getting rid of the current expensive system of collecting council tax.  It’s not only fairer – it is more efficient.  

What would Local Income Tax (LIT) mean for you?
 

• Local Income Tax would work in much the same way as national income tax.  All tax allowances would remain the same.  The Local Income Tax is simply an additional element charged on top of current income tax.
• All income which is currently taxed at either the basic rate or top rate would be eligible for Local Income Tax.
• If you do not currently pay income tax you would not pay Local Income Tax.
• Council tax benefit can be abolished because LIT is based on income and uses the current arrangements for tax allowances.  It will no longer be necessary for one part of the government to administer and provide benefits and relief for tax bills issued by another part of the government.  Instead, the £300 million annually passed from central government to local authorities via the benefits agency in the form of council tax will go straight to council budgets, saving around £30 million in benefit administration.
   

Local Income Tax in practice 

Examples of how LIT would affect different types of household. The figures here are a Scottish average

• Single pensioner household in Band B home where income is £8,500 would save £615 per year

• Pensioner couple in Band D home where income is £11,500 would save £933 per year

• Single person in Band B home where income is £13,400 would save £322 per year

• Single person in Band D home where income is £25,000 would save £43 per year

• A family in Band B home where income (minimum) is £9,360 would save £699 per year

• A family in Band D home where income (joint) is  £38,400 would save £13 per year

• A family in Band F home where income (joint) is £52,000 would pay £74 more per year.

• A family in Band H home where income (joint) is £136,358 would pay £3,138 more per year.

When this scheme was announced last Friday the media said, “Critics say it is unworkable”.  Well, of course they would – they’re critics! The devolution settlement gives the Scottish Parliament responsibility for raising finance for local authorities but it does not give the necessary powers to make any reform meaningful.  The Scottish Parliament has very limited control over the basic rate of income tax and does not have the power to instruct the Inland Revenue or the Department of Works and Pensions to take the actions that could make LIT happen.

The SNP has a clear, concise answer to these problems.

“Financial Independence and the powers of any normal parliament would give us the opportunity to do what is best and to do what works.  We believe that the powers exist within the Scotland Act to allow us to bring in a local income tax without recourse to reopening the Scotland Act.

THE RETURN OF STAR WARS

No, I am not referring to the next film in the series, much as I enjoyed watching them, but to the United States’ policy of Missile Defence.  It is a major part of the US policy described as “full spectrum dominance”.

The Outer Space Treaty of 1967 (signed by the United States and the United Kingdom) says, “Space belongs to all humankind, should benefit everyone and should be explored peacefully to promote international co-operation and understanding”.  

Now the United States is proposing to develop systems intended to destroy missiles fired at America, its armed forces and its allies.  They plan to put satellites in space to detect and shoot down ballistic missiles using lasers, use land based radar to detect missiles and use anti-missile missiles based on land, sea and air.  In 2002 the US announced they were planning to fire nuclear weapons into space to shoot down missiles. Weapons in space could be used to attack threats to US interests anywhere in the world.  They are a component of a US scheme to control space and, because of this, missile defence has become known as Star Wars.

The main objection to the missile defence plan is that it could put all other countries under the military domination of the US.  It will enable the United States to be aggressive without fear of retaliation and it will lead to the militarisation of space, outlawed by the Outer Space Treaty. The proposed US system also falls outside the Anti-Ballistic Missile Treaty of 1972, which was the foundation of international treaties to avoid nuclear war in the past and all subsequent nuclear weapons treaties.

Will it work?  I am not competent to say.  There are some scientists who believe it will be too difficult to make the system work and others who are determined to make it happen.  If they succeed and it does work there is a danger that missiles fired at the US won’t be destroyed but will fall short – and possibly on other countries.  Missile defence systems would not have stopped the terrorist attacks on September 11 and will do nothing to stop chemical, bacterial and nuclear weapons being hidden on trucks, ships and planes.  But the US plans could provoke a dangerous new arms race as other countries try to build up their nuclear and other weapons to beat the system.

What’s Britain’s involvement?   The US wants to use two facilities in Yorkshire as part of its missile defence programme.  At Fylingdales, there already is an Early Warning System to detect missile attacks in the event of war.  For their missile defence programme the US want to use the radar systems at Fylingdales to track and target satellites, space objects and missiles.    And at Menwith Hill, the US operates a base for intercepting telephone calls, e-mails, faxes and radio signals made in Britain.  They want to use Menwith Hill to receive information from space-based missile detection satellites. 

The British Government has said it is willing to allow these facilities to be developed although there has been no debate in the Westminster Parliament.

Even as I write this it sounds fantastic – but it’s not. Former US Commander in Chief Joseph W Ashy is on record in the publication Aviation Week and Space Technology  -  “Some people don’t want to hear this…..but – absolutely – we’re going to fight in space.  We’re going to fight from space and we’re going to fight into space…..”

However if enough people hear about these plans and get together to campaign against them we may be able to have some impact.  CND are in the vanguard; the SNP is also committed to the campaign.

HOME OFFICE MUST RE-THINK

I live in Glasgow in the Southside of Glasgow near the place where Iranian asylum seekers whose applications had been rejected by the Home Office are on hunger strike with their lips sewn together.  I cannot imagine how desperate people must be to even contemplate such a thing.  Locals speak with incredulity of a Government that can allow this to happen and wonder aloud that the Scottish Executive seem unable to speak about this situation far less do something about it.

I caught only a part of a Lesley Riddoch programme on this subject on Radio Scotland but what I heard was very thought provoking.  One of the Iranians had an uncle who was a “libertarian” activist and who was publicly hanged for his activity.  But he couldn’t prove it.  There was no paperwork.  I have a friend who is an Iraqi Kurd whose brother and eleven male cousins “disappeared” in the late 1980s under the Saddam regime.  He was a student in Glasgow at the time and sought and received asylum.  Had he been asked for proof of what had happened to his family, what would he have said?  One day they were, the next day they were gone and no one has seen or heard of them since – there is no paperwork!  I know we cannot have an open house, I know that we have to guard against rogue applications but surely we must make judgements on the balance of probability rather than needing absolute proof.

Iran is a country with an appalling human rights record that has recently elected a hard-line government and that does not bode well for democracy in that country.  Jack McConnell tells us that this is a matter for the British Government at Westminster to deal with.  But it is happening in Scotland – our country – and we should be able to have our voices heard.  Our voices – not Jack McConnell’s.  All sorts of church and civic groups in Scotland have expressed the need for re-consideration. I have just learned that John Swinney has been to visit the hunger strikers and has said that compassion demands that the Home Office re-think the asylum application.  I pray that compassion can be found and a just decision made before it is too late.

POLICY POSTCARDS

We continue our publication of the SNP Policy Postcards; we will publish a new one every week, each one dealing with a different aspect of SNP policy. The full list can be seen on the SNP website under "Vision" and "Policy".

Water

Decades of under-investment in Scotland’s water industry has resulted in sky-high water charges and concerns about the quality of water flowing from our taps; while the SNP recently halted an attempt by the Scottish Executive to privatise the water industry by the back door.

It is vital that the water industry – which provides a vital public service – remains publicly controlled and accountable to the Scottish public. Water quality must never be compromised for private profit, and the public must be safeguarded from extortionate water charges.

Water bills have increased by up to 147% since New Labour came to power in 1997, and charges continue to soar under the Lib-Lab Coalition.

The SNP will ensure that the water industry remains publicly owned and publicly accountable. The SNP will make the investment necessary to create high quality, value-for-money water services.

To meet our international obligation we need to invest in sewage treatment to bring our beaches up to standard.

England's water quality is better than Scotland's and, under the Scottish Executive's plans, it will stay that way. Why should Scottish consumers be treated as second class citizens?

SYNOPSIS

Alex Salmond MP on the non-publication of the advice of the Attorney General regarding the invasion of Iraq. Thu 4 Mar 04

"MPs were expected to vote on war or peace in Iraq exactly a year ago, therefore it is now essential that all the evidence relating to that decision is placed in the public domain. This is an issue of huge importance given the ramifications of the war and the carnage we are witnessing in Iraq."

Annabelle Ewing MP, on the fifth and final report of Surrey Police into the unexplained deaths of four young soldiers at the Deepcut army barracks. Thu 4 Mar 04.

"This report makes grim reading for the Ministry of Defence - it is a damning indictment of the army’s failure to discharge its duty of care towards the young men and women in its service. It finds that the four deaths were originally not properly investigated - which must mean that the official conclusion of subsequent investigations of no third party involvement is fundamentally undermined. The only way to establish the truth and ensure that appropriate lessons are learned is for there to be a full independent public inquiry."

On Fri 5 Mar 04, John Swinney, SNP Leader and Shadow First Minister published details of a policy to abolish Council Tax and replace it with a Local Income Tax.

"Today’s proposals offer help, not just to pensioners but also to hundreds of thousands of Scots on modest and low incomes. They will see their bills slashed and the principle of ability to pay introduced into local taxation."

Nicola Sturgeon MSP said the Executive had to reflect more on the AntiSocial Behaviour Bill, after it was passed by a narrow majority at the Communities Committee and the Justice 2 Committee.

"Removing anti social behaviour from the streets of Scotland is a major task. Communities across the country must have the right to live without the fear of anti-social behaviour and I hope this Bill will work towards that, However the Executive must rethink issues such as the proposed dispersal powers which are to be handed to police forces."

Angus Robertson MP and Adam Price MP (Plaid Cymru) will lead a debate in the House of Commons on Tue 9 Mar 04 on votes for 16 and 17 year olds.

"Young people have a right to be able to vote from 16; they can get married, have sex, become a parent, smoke drive and join the army before they can vote; this needs rectified."

Kenny MacAskill MSP said on Sun 7 Mar 04 that Easy Jet provided hardly any direct flights from Scotland.

Each week Easy Jet flies 110 flights from Edinburgh, 85 from Glasgow, 16 from Inverness and 12 from Aberdeen - all to London; however they only supply one international destination from Glasgow and Edinburgh and none from Aberdeen and Inverness.

"Easy Jet must stop making easy pickings from Scots travellers. We should have the same entitlement to direct flights from Scotland as they do south of the Border, instead of forcing us to take two flights instead of one."

Roseanna Cunningham MSP attacked the Executive’s refusal to ban GM crops in Scotland; the opt out will be voluntary. Tue 9 Mar 04

"They lack the backbone to tell London "No" and their voluntary opt out is nothing less than a wimp out. Very soon we will see GM companies making offers to farmers that they simply cannot refuse and once a couple of crops are planted, the voluntary opt out will not make a blind bit of difference."