Ending of poll tax collection supported in stage 1 report

The Scottish Government bill to end the collection of still-outstanding community charge debts has been backed by MSPs on Holyrood's Finance Committee.

By six votes to one (Conservative Gavin Brown MSP dissented), the committee gave its support to the general principles of the Community Charge Debt (Scotland) Bill, in its stage 1 report published today.

The bill removes individuals' liabilities to pay the community charge, or "poll tax", levied in Scotland between 1989 and 1993 but subject to fierce public protests at the time. Voter registration for last year's independence referendum was thought to reveal individuals who had outstanding liabilities. The amount otherwise being collected has declined in recent years and the Scottish Government is to distribute a lump sum payment to local authorities to compensate for revenue being collected under existing recovery arrangements.

The MSPs however noted that this does not take account of payments being made through "informal or sporadic arrangements", and considered that more detailed analysis and evidence of the sums involved should have been made available.

They also queried the level of consultation undertaken ahead of the bill being introduced, ministerial claims about the costs of collection being greater than the sums collected, and why no estimate of potential savings had been provided, as required under standing orders.

Concerns from some local authorities that the legislation will impact on attempts to ensure payment of council tax are also recorded, along with the response from Finance Secretary John Swinney that there is a generally high rate (above 97%) of collection of council tax and there will be no underwriting by the Government of reduced collection of council tax after the bill becomes law. 

Convener of the Finance Committee, Kenneth Gibson MSP said: “I expect to see further detail of the costs and savings relating to the bill as it continues its passage through the Parliament.”