By Steve Bargeton, political editor

THE SCOTTISH LABOUR and Tory leaders yesterday launched a twin attack on the SNP Government’s plans to scrap the council tax and bring in a local income tax.

In speeches to the Cosla annual conference in St Andrews Wendy Alexander and Annabel Goldie warned the scheme would take power away from councils.

Ms Alexander said, “Hiking income tax for every working Scot and then passing the proceeds on to local councils will end local financial accountability and will be bad news for local democracy. It is misconceived and anti-competitive and will clobber hundreds of thousands of hard working Scots.

“Higher rates of income tax for all those in work robs local government of current powers and responsibilities over local spending levels. In future elected members in council chambers will have no say in setting local spending levels.

“This power grab by the centre may appeal to the SNP’s control freak tendency but it will do nothing to enable councils to respond to local priorities in their own areas. There is nothing local about central government hiking income tax.”

She said the SNP’s proposed local income tax rate of 3p in the pound would only raise half of what the council tax currently raises.

In her address Scottish Tory leader Annabel Goldie, too, said a local income tax could not raise as much as the council tax.

“We know, study after study tells us so, that a 3p national income tax is not nearly enough to raise the amount currently brought in by the council tax—perhaps by a billion pounds or more,” she said.

“Even on the SNP’s own figures there is a multi million pound black hole.

“But lets be overly generous and assume that the SNP sums DO add up—after all I am a generous woman.

“Even by their calculations, and if the council tax benefit of around £400 million continues to be paid, the SNP need to find nearly a billion pounds more if it wants to limit its new tax to 3p—and that’s if their sums add up.”

She suggested there was another way to cut council tax bills.

“Why not use this new money to address the root cause of public concern about the council tax—not the system—but its soaring levels over the last decade.

“£1/2 billion could slash council tax bills across Scotland by 25% on the SNP’s own questionable figures.

“In fact even based upon the SNP’s calculations any family with £25,000 or more of taxable income will now be worse off under the SNP’s new national tax compared with the alternative reformed and reduced council tax.”