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Would local taxation work in the UK?

As the Scottish parliament continues to push for independence we will likely see the subject of local taxation rear its head in the months and years ahead. In simple terms, a local taxation strategy would allow local authorities in the UK, Scotland in this particular instance, to charge residents an additional tax on their income which will be used to fund local services.

While the initial comments from the SNP, the ruling party in the Scottish parliament, indicated a very small tax on income in the early days, many people believe this would literally open the door to huge rises in the future. It would also create a two tier system in government and local government which would obviously have duplicate costs and inefficiencies. This is before we even consider the fact that local authorities would obviously charge a rate which suited their needs and their requirements which would lead to a divergences in local tax rates and potentially see people moving to the "cheapest authority".

The truth is that a national taxation system has been in place for decades in the UK and ultimately it has worked. While local authorities obviously charge council taxes depending upon their budgetary requirements and needs, the introduction of a local tax system would obviously impact upon the rich more than the poor and could polarise Scotland by local authority.

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