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Question Time
SCOTTISH EXECUTIVE
General Questions
Economy (Families)
To ask the Scottish
Executive whether its policies reflect
the view that hard-working families are the
cornerstone of a successful economy.
Mr
Duncan McNeil (Greenock and Inverclyde) (Lab):
To ask the Scottish Executive whether its policies reflect the view that
hard-working families are the cornerstone of a successful economy.
(S2O-6304)
The Deputy Minister for Enterprise and Lifelong
Learning (Allan Wilson): The refreshed
"Framework for Economic Development in Scotland" contains a long-term
strategy to secure long-term employment, and hard-working families are
critical to realising that ambition. United Kingdom tax credits and Scottish
initiatives such as the working for families fund and the child care
strategy have already helped many families. The Executive will continue to
work with the UK Government to ensure that all families have the opportunity
to contribute to growth and prosperity.
Mr McNeil: Does
the minister agree that to hammer with a local income tax hard-working
families, who already pay their fair share, is unfair and poses risks to the
economy, of which they are the backbone? Does he agree that excluding one
major source of wealth — property — from taxation would unbalance the tax
system and create nothing but a big pay-day for tax lawyers?
Allan Wilson: I
thank the member for that question. He knows that I have a deal of sympathy
with his position.
The council tax—
Mr John Swinney (North Tayside) (SNP)
— is unfair.
Allan Wilson: The
council tax is the subject of independent review. One factor that will have
to be taken into account in that review is that, because of rising child tax
credits, 3 million of Britain's 7 million families with children now receive
more in tax credits and child benefit than they pay in income tax —
effectively, their income tax liability is wiped out. I say to Mr Swinney
that what would be unfair is adversely to affect that tax liability by
adding to the tax burden on those families, as he proposes.
Jeremy Purvis (Tweeddale, Ettrick and
Lauderdale) (LD): Is the minister aware that
the Institute for Fiscal Studies showed that 75 per cent of people would
either pay the same or less with a local income tax? Does he agree that a
taxation system should be progressive? Does he further agree that the Prime
Minister is right not to rule out a Labour Government introducing a local
income tax?
Allan Wilson: The
point that I make in response to Jeremy Purvis is the point that I made to
Mr Swinney: the independent review will require to examine the impact on the
lowest-paid and poorest families in our community, their child care credits
and their tax credits before it comes to any conclusion on whether a local
income tax would be beneficial to them or otherwise.
To read
the official report,
Click Here
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