15-01-04

“Commission report shows need to axe Council Tax” – Barrett

John Barrett, Liberal Democrat MP for Edinburgh West, responding to today's report by the Audit Commission, argued that despite the increased council tax collection rates in both Edinburgh and Scotland, the report confirmed the need to abolish council tax and bring in a new local income tax.

The Report by the Audit Commission "Corporate Management - Performance Indicators 2002/03" shows the council tax collection rate for 2002/03 in Edinburgh at 91%.  However, it is estimated that almost £65 million remains in uncollected council tax in Edinburgh since 1996.  The report also shows the cost of collecting council tax in each local authority.  In Edinburgh, the cost is estimated to be £12 per dwelling.

In a statement, John Barrett said:

"Although the collection rate of council tax in the Capital has increased, almost one in ten people in Edinburgh are still not, for whatever reason, paying what they owe.  Worse still, the cost of council tax collection in the City is now almost £2.5 million a year.  On top of this, you have the cost of operating council tax benefit.

"Scrapping council tax and bringing in a local income tax, based on people's ability to pay, would not just be fairer but would be massively more efficient.  A new local income tax could piggy-back on the PAYE system and since fairness is already built in to the tax, there would be no need for council tax benefit.

"The upcoming review by the Scottish Executive into Local Government finance gives us a perfect opportunity to end the discredited council tax system, which was no more than a quick fix for the poll tax and bring in, once and for all, a just and fair way of paying for our council services."

ENDS

Notes to Editors

• The Account Commission report can be found at
http://www.audit-scotland.gov.uk/publications/pdf/2004/04pi01ac.pdf

• Figures from the City of Edinburgh Council City Development Department show that there are approximately 200,000 dwellings in the City of Edinburgh local authority area.

The Commission report stated that the cost of council tax collection per dwelling is £12.

£ 12 x 200,000 = £2,400,000