Monday, June 25, 2007

Not an "issue about more money"??

ALEX Salmond's plans to scrap the council tax were dealt a severe blow yesterday by UK government ministers who threatened to hold back more than £400 million if the reforms go ahead.

Part of the SNP's election mnaifesto was the replacement of the council tax with a "local income tax"; the Labour Party have claimed this would leave the Scottish administration with a one billion quid "blackhole". Nevertheless, last week the idea was backed by a majority of the Scottish parliament.

Who's expected to subsidise for this likely "black-hole" then?

Well, who do you think?

But the UK exchequer is fortunately having none of it...

Yesterday, Mr Cairns (A Scottish Office minister) made it clear that if the system of local taxation is changed, the £400 million currently reserved for council-tax benefit would not be diverted from direct spending to the Scottish block grant - where it would help meet any shortfall.

"The council-tax benefit is a benefit paid in relation to the council tax, full stop. If there isn't any council tax then there isn't any council-tax benefit," he said.


Seems fair enough, if Salmond wants to change the taxation system in Scotland, why should taxpayers in the rest of the UK be expected to cough up the shortfall?

But, hold on a minute....

A Scottish government spokesman added: "This is not an issue about more money....

Huh??? So, what's it about then?

1 comment:

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