GRAY ATTACKED OVER MOVE TO END COUNCIL TAX CAP

Oct 3, 2010 10:37:04 AM

By Scott Macnab, Political Reporter, Press Association Scotland

(ScotFile: News Special)

A row over the council tax freeze broke out today after Labour leader

Iain Gray confirmed that he would allow local authorities to end the

current cap to raise additional revenue.

But the move was branded a "disastrous blunder" by the SNP, which has

overseen a freeze in council tax levels since it came to power three

years ago.

Mr Gray indicated there should be limits on any future rises which the

Scottish Government helps pay for through a GBP70 million central funding

pot.

The Labour leader said: "I don't think local authorities should be free

to put their council tax up as much as they feel like it.

"We are saying they ought to be given their freedom to set tax locally.

"The SNP are either going to have to demonstrate how the freeze is

sustainable or should be talking to councils about the parameters in

which they remove that gun from their head ie you can only put it up if

you demonstrate what it's being used for or it can only go up by a very

small limit.

"I think a lot of local authorities may well not put it up."

Mr Gray wants to become First Minister in next May's Scottish elections,

with Labour topping recent opinion polls for Holyrood.

Local Government body COSLA has suggested a 3% cap on any future council

tax increase.

Mr Gray added: "I think that if we were easing off [the freeze] it would

be reasonable to set parameters on it. Councils should have to explain

very carefully... what they're using the money for."

There have been calls from others for ministers to consider whether the

charge should continue to be frozen.

Gordon Matheson, the Labour leader of Glasgow City Council, has already

warned there can "be no sacred cows".

And the Independent Budget Review group - which was commissioned by the

Scottish Government - also suggested in its report that the council tax

freeze should be looked at being "discontinued" as it does not appear

"sustainable" in the long term.

But the Tories last week said the freeze should remain in place for

another year.

And SNP deputy chief whip Angela Constance today warned that Labour put

up council tax by 60% when they were last in office.

She said: "It is a disastrous blunder by Iain Gray.

"His public profile is almost non-existent, but this will only succeed

in making him known as the man who wants to hammer Scots families and

pensioners by pushing up their council tax.

"The SNP Government has helped hard-pressed households by freezing

council tax year on year - saving average households nearly GBP300 when

people's finances are under real pressure. Labour now wants to punish

people at a time when money remains tight for many.

"This is Labour showing its true colours with tax rises for hard-pressed

families. Labour would make all Scots pick up the bill for Labour's

failure in government."

end

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