SNP plans to make local income tax, er.., a bit local

The Sunday Times had the story this weekend, though it’s safe to say that Labour don’t really like this idea:

The SNP is facing accusations that its flagship local income tax policy (LIT) is in chaos after it opened the door to Scotland’s 32 councils setting different rates…

In a dramatic U-turn on the policy, the Nationalist administration at Holyrood is now looking at allowing councils to vary the rate downwards and giving them the flexibility to set rates locally but also setting a cap at 3p…

Mr Kerr [Labour MSP] added: “The idea that to appease the Liberal Democrats we could have 32 different rates of income tax, one for each local authority, is madness.”…

Last night the Liberal Democrats welcomed the SNP’s shift in position. The party’s finance spokesman, Jeremy Purvis said: “They are moving in our direction. This is the first time the SNP have recognised that councils should be given discretion. However, we are waiting to see the details of the policy.”

Hat tip: Stephen Glenn