The Scottish Socialist Party has launched a radical proposal to abolish household water charges.
Since Scottish water was removed from the control of local councils and placed under the management of unelected quangos household bills have risen by an astronomic 105 per cent.
Over the same period, business bills have risen by just 16 per cent.
And with no rebate system, some of the poorest households in Scotland are forced to pay up to 6-7 per cent of their total income on water charges.
Under the SSP plan, household bills would be scrapped completely. So too would charges for the voluntary sector. To make up the loss of revenue, there would be new fixed charges levied on business, especially big business corporations.
This would bring Scotland into line with the Republic of Ireland, where household bills were first introduced, then abolished in the 1990s following a mass campaign of non-payment that echoed the Poll Tax non-payment campaign in Scotland.
According to the most recent report of the water commissioner for Scotland, total projected revenues from water charges in 2002-2003 will be £884.3 million. That will be made up of:
As these figures illustrate, business will pay just 28 per cent of total water bills levied in Scotland, while domestic households will pay 63 per cent. Under our proposal, businesses would continue to pay for the water they use. But the existing standing charge for businesses would be replaced by a new water levy linked to the size of the business.
By means of a new charge based on company turnover, or rateable value (or a mixture of both) we would aim to raise at least £600 million extra. This in turn would cover the cost of providing free water to household customers and to the voluntary sector.
A turnover tax of 0.3 per cent on all business transactions carried out in Scotland would be enough to raise this sum of money. A levy of 0.5 per cent would raise nearer £1 billion, which would allow a major programme of public investment and the scrapping of all PPP/PFI schemes.
Under our proposals, micro-businesses which are too small to register for VAT or PAYE would be exempt from the new levy. Small registered business with a £50,000 a year turnover would pay £150. For a small shop in the West of Scotland with a £5000 rateable value this means a £30 increase as compared to their current standing charges. But the owner of that newsagent would be freed from household charges of perhaps £250-£350 a year.