- Scrap the unfair, regressive Council Tax.
- Implement the Scottish Service Tax – progressive income scaled to the ability to pay.
- Write-off Council Tax debt.
- Raise millions for jobs and local services while lifting the heaviest burden from working-class households.
Scrap Council Tax
The Scottish Socialist Party will scrap and replace the unfair Council Tax.
The Council Tax puts an unfair, higher burden on lower earners whilst lightening the tax bills of the very richest in our society. It is the government’s gift to the already wealthy.
In 2022, the Scottish Government’s Council Tax freeze will be coming to an end. In every part of Scotland, the predictions are for substantial hikes. With similar hikes in energy bills, rent, and shopping costs – and no change in wages – this year promises to heap substantial extra costs on working-class households.
In 2019, households in Scotland were facing a combined Council Tax debt of at least £6.9 million. As Council Tax and living costs rise again, so too will Council Tax debt.
Council Tax fails to raise anything close to adequate funding for jobs and local services. In fact, the Council Tax freeze has been in place and reform on hold for so long that the funds raised by Council Tax have actually fallen over time.
This is the result of years of inaction and broken promises. The SNP and the Scottish Greens were elected on a promise of scrapping Council Tax, but the SNP/Green coalition government is set to let your Council Tax rise again.
Without reform, the outcome will be skyrocketing taxes for those who can least afford it, coupled with ongoing cuts to the public services we all rely on.
The Scottish Service Tax
The Scottish Socialist Party will replace the regressive Council Tax with the progressive Scottish Service Tax.
The Scottish Service Tax is pegged to household incomes, not outdated property values. By linking tax bills to the ability to pay, we lift the burden from those worst hit by the Council Tax.
| Band | Income | Tax rate | |
| Band 1 | > £00,000 | £10,000 | 0% |
| Band 2 | > £10,000 | £30,000 | 4.5% |
| Band 3 | > £30,000 | £40,000 | 15% |
| Band 4 | > £40,000 | £50,000 | 18% |
| Band 5 | > £50,000 | £90,000 | 21% |
| Band 6 | > £90,000 | 23% |
For example, on an income of £25,000 a year, your first £10,000 would be under Band 1 — tax-free. The following £15,000 fall under Band 2 taxed at 4.5% giving you a total bill of £675 each year. This bill is only around a third of what might be expected under current Council Tax rates in most parts of Scotland.
Only do the very top peaks of wealth start to see bills increase. Someone earning £100,000 a year would receive a bill for £1,241 a month. Their first £10,000 to income is still tax-free, the next £20,000 coming in at 4.5%, the next £10,000 at 15%, the next £10,000 at 18%, the next £40,000 at 21% and the last £10,000 at 23%.
The Scottish Service Tax is about easing the squeeze the majority of people in Scotland are already facing.
In 2018/19, the Council Tax took raised around £2.4 billion. We can conservatively calculate that the Scottish Service Tax will raise £4.1 billion.
That’s an additional £1.7 billion raised for schools, jobs, and local services all whilst still lowering bills for the majority.