Estimates highlight cost of Scotland's local income tax

Date: 27th June 2008

Local income tax proposals by the Scottish National Party (SNP) could cost more to implement than originally thought, it has been claimed.

According to reports by the Herald, independent figures have been released showing a cost increase of nearly £300 million when compared with officially released figures.

These figures have been released by the Institute of Public Finance (IPF), an organisation linked with the Chartered Institute of Public Finance and Accountancy.

"These figures confirm every council across Scotland faces a shortfall in funding with a nationally set 3p rate for local income tax," said Stephen Curran, Glasgow city treasurer.

A representative from Scotland's government added: "We are committed to replacing the regressive council tax with a fair system of local income tax based on ability to pay."

The IPF believes that, after collections under the new taxation scheme, local authorities would suffer a funding shortfall of no less than £550 million.