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Scottish Councils Pave Way For Local Income Tax

It has been ridiculed by the opposition parties, it has even been suggested it may be illegal, but whatever the real position the prospect of a local income tax moved closer today. The tax could replace the current council tax system after Scottish councils collectively voted in favour of the idea. This now puts the opposition parties in a very difficult situation and hands the power back to the SNP on a massive scale.

The next few months will be vital if the plans are ever to see the light of day as Treasury Ministers in Whitehall believe that the Scottish Parliament does not currently have the legal right to impose the tax. There is also the added problem that voters in the UK may ask why they have not been consulted on the radical tax move if Scotland is given the go-ahead.

In many ways this issue will make or break the Scottish Parliament as the ruling SNP look to flex their muscles and ultimately push for Scottish independence. However, if the local income tax idea is given the go-ahead does this not make it easier for councils to increase tax rates in the future?

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