Local Income Tax: The latest gaffe

The SNP’s plans for a local income tax, have again been proven to lack any consistency or consider the impact on local services, according to a report by the Scottish Labour Party. The SNP still insist that a 3p rate in the pound will be a sufficient rate, however, this would leave a gaping chasm of £900 million in order to sustain current council spending.

There is still not one single INDEPENDENT commentator who is able to back the SNP’s prediction of the 3p rate. This means that council services would have to be lost in order to make way for the rate, this means that we could see increasing public sector unemployment in Scotland, while the rest of the UK experiences employment at record levels. This could also lead to a mirroring of the farsical situation in Aberdeen, where the SNP/Lib Dem coalition, have been cutting local services at a rate never seen before.

Labour’s figures draw upon Price Waterhouse Coopers modelling and identify for every council in the exact point at which joint income and single person households start to pay through the nose when LIT is charged at the real rate of 5 pence in the pound.

Grangemouth Labour have found that in Falkirk any household with a joint income of £31,770 will pay more under Local Income Tax at 5p in the pound. People living alone will start paying more if they’re earning more than £21,795. This does not take into consideration the fact that many household often can have 3-4 earners in the houses, many of whom may be low earners or students.

Grangemouth Labour Councillor Allyson Black says that:

“The SNP know a Local Income Tax of 3 pence in the pound will never be enough to meet the cost of local services, they simply do not want to let people know that a 5p rate would have to be set in order to sustain current spending, This would mean that a couple in Grangemouth who each earn less than £16,000 would start to pay more. I hope the SNP will not continue to pull the wool over their eyes!”

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