Press Release
29th January 2007

Don’t Target Hardworking Families, McNeil Warns Minister
Greenock and Inverclyde’s hardworking families should be valued, not targeted as a soft touch, MSP Duncan McNeil has told Liberal Democrat Deputy Finance and Public Service Reform Minister, George Lyon.

The pair clashed during Finance and Public Services Questions in the Scottish Parliament, when Mr McNeil called on the Minister to recognise the contribution which working families make to the economy and to the funding of public services.

Condemning the Minister’s refusal to do so, he said that working families in his constituency already paid their fair share and that it would be, “utterly unfair and counterproductive to hit those hard-working families with an extra local income tax bill”, as both the Lib Dems and SNP want to do.

Mr McNeil asked the Minister whether the Scottish Executive, “believes that working families contribute proportionately to the funding of local public services in Inverclyde.”

The Minister, however, replied that he wanted, “a local taxation system that is fair and proportionate, not just for working families in Inverclyde but for people right across Scotland.”

Mr McNeil condemned the Minister for refusing to acknowledge their contribution and for failing to promise that they would not be targeted so that bills for the richest could be cut. He said:

“I express some surprise that the minister does not acknowledge the fact that hard-working families already pay their fair share for the services that we all enjoy.  Such families are the backbone of our national and local economy and as such should be valued, not targeted.  Would it not therefore be utterly unfair and counterproductive to hit those hard-working families with an extra local income tax bill, as the minister's party and the nationalists propose to do?”

Earlier, Mr McNeil had said:

“If a local income tax is imposed on us, households where a couple are both out working will be hundreds of pounds worse off.  And families with adult children at home will be similarly hit – even if the child is only making apprentice wages.  At the same time, wealthy tax-dodgers based outside Scotland for tax avoidance purposes wouldn’t pay a penny.

“How can that be fair?  Rather than this super-tax on hard work and a tax-break for the super-rich, we need to make Council Tax fairer for everyone.”
ENDS

The relevant extract from the Official Report reads:

Local Government Funding (Inverclyde)

6. Mr Duncan McNeil (Greenock and Inverclyde) (Lab): To ask the Scottish Executive whether it believes that working families contribute [Col 31495 ] proportionately to the funding of local public services in Inverclyde. (S2O-11779)

The Deputy Minister for Finance, Public Service Reform and Parliamentary Business (George Lyon): We want a local taxation system that is fair and proportionate, not just for working families in Inverclyde but for people right across Scotland. That was why we set up the Burt committee. We are now examining the committee's report and we will make a decision on the way forward in due course and in the light of all the facts.

Mr McNeil: I express some surprise that the minister does not acknowledge the fact that hard-working families already pay their fair share for the services that we all enjoy. Such families are the backbone of our national and local economy and as such should be valued, not targeted. Would it not therefore be utterly unfair and counterproductive to hit those hard-working families with an extra local income tax bill, as the minister's party and the nationalists propose to do?

George Lyon: A number of views have been expressed in the Burt committee's report, one of which—recommendation 3—was that the council tax should not be retained in its current form. As I said in my previous answer, ministers will have to consider all the facts in the committee's report. We will reflect on that and in due course we will produce a way forward.

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