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Local tax plan 'scaring off businesses'

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Published Date: 08 January 2009
SNP plans for a local income tax are scaring off firms that want to invest in Scotland, a business leader has claimed.
Iain McMillan, director of CBI Scotland, said it was now time for the Scottish Government to ditch its proposals to introduce the new 3p in the pound charge to replace the council tax.

He said: "We know of a number of businesses now that have warned the Scottish Government that operations and jobs that they would have brought to Scotland have been put on hold until this matter is determined."

Mr McMillan said the new tax could be "very damaging".

A government spokesman said: "We are not aware of any businesses in this position."

• Labour is set to call Alex Salmond's bluff if he repeats last year's threat to resign as First Minister if MSPs defeat the SNP's budget later this month. The SNP is in talks with opposition parties in a bid to secure support for its package to be unveiled tomorrow.





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  • Last Updated: 08 January 2009 10:19 AM
  • Source: Edinburgh Evening News
  • Location: Edinburgh
 
1

,

08/01/2009 11:27:31
Comment Removed By Administrator
Reason:
2

Amenemhat,

08/01/2009 12:19:45
Damm, better mention it to tesco then as they are just moving their financial arm into a new head office in haymarket
3

Abel Magwitch,

08/01/2009 12:33:45
Canada has a central government and several provincial governments with devolved powers over education, etc. Provincial income tax used to be a small fraction of federal tax but now in some provinces the two taxes are almost the same. A warning here for Scotland.
4

Arrow,

einburgh 08/01/2009 12:38:05
perhaps the CBI might care to name the businesses mentioned in case they seek Scottish governemnt grants and other concession for them to locate here and then p*ss off when the value of the grant is spent.
5

It's me!,

08/01/2009 12:41:48
Mr McMillan said the new tax could be "very damaging"

Or on the other hand it could be very good for those on lower wages having to use a greater proportion of their income to pay their council tax thereby subsidising those who pay nothing at all or those paying a much smaller proportion of their income on council tax. Such as Iain McMillan and his buddies in the CBI, Institute of Directors etc
6

alanh,

ek 08/01/2009 12:57:29
could the "journalist" not even ask him to name ONE company?
7

Clen Peapus,

Edinburgh 08/01/2009 13:05:52
I'm not a fan of taxes, and in this country we have enough of them.

However I cannot reconcile why two citizens, who live in the same area in similar houses using similar council services (refuse collection, street lighting, etc, etc), would not be expected to pay the same for those services.

It's absolute lunacy! Imagine buying your weekly shop or the latest gadget to be told you'd be paying 50% more for it than the previous customer, because you earn more money.

I have genuine sympathy for pensioners and people on low incomes, and I think they deserve assistance or discounts to pay council tax. But I worry that this setup simply encourages a presumption amongst many that it is easier, and more cost effective, to sit at home on the dole than go out to work.
8

Steven P,

edinburgh 08/01/2009 13:06:38
Its happening already.
Woolworths and Zavvi driven out of Scotland by local tax proposals.
HBOS taken over by Lloyds with significant job losses anticipated - again because of local tax proposals.
Superfast Ferries ceasing their Rosyth service - again because of local tax.
Mr McMillan (and not for the first time), you are talking out of your a**e.
9

Steven P,

edinburgh 08/01/2009 13:11:59
#7 Clen Peapus...
My neighbours do spend huge amounts more than me on their weekly shop, latest gadgets, new cars or foreign holidays - because they earn more money than us.
However, I have the option not to buy those gadgets or holidays.
So, are you proposing to make council tax optional (for services used)?
10

Clen Peapus,

Edinburgh 08/01/2009 13:23:25
#9 I clearly didn't propose that council services should be paid for on a per-service basis. I simply think that the provision of access to the range of council services should cost everyone the same amount. With the proviso that people with low incomes (such as the elderly) pay a discounted rate or nothing at all.

It sounds like your neighbours are doing their best to support the economy, they should be applauded.
11

Steven P,

edinburgh 08/01/2009 13:41:20
#10 Clen Peapus...
Just to be clear about what you propose:
That all citizens pay the same amount for council services except those citizens who would pay less.
So some would pay more than others.
Erm, isnt that exactly what we have at the moment?
And buying new Volkswagens and skiing holidays in the Swiss Alps isnt quite my idea of supporting the economy.
But then we seem to have quite differing ideas on economics.
12

Clen Peapus,

Edinburgh 08/01/2009 14:00:16
#11 I'm happy with the current council tax arrangements, or at least I prefer it over the income-based approach.

However I think a good balance might be a system which based the cost on a combination of both property value (like the current system) and income (like the proposed system). I don't think either in isolation is perfect, I just find it easier to reconcile that people should pay the same amount for the same goods or services.

A new system could take account of your equity, savings/investments and assets. To prevent the loophole in the new system, where you could be extremely wealthy in assets or investments, but have no income.

Clearly it is a difficult issue with no right answer, as neither the greatest minds in the land, nor the politicians, can propose a perfect solution.

My overriding preference is to pay as little as possible.

On the less substantive point about your neighbours supporting the economy, I'd say that higher spending on their weekly shop does count towards supporting/contributing to the economy.
13

THE BPRENTICE,

08/01/2009 16:02:27
#6 Iain McMillan, director of CBI Scotland, said he "We know of a number of businesses - that's good enough for me - it would be unethical for him to name names to the press. He won't just be making it up.


I think the Scottish Government should ditch its proposals to introduce the new 3p in the pound charge to replace the council tax forthe large companies but install it for the small ones - there are different tax laws already to differentiate between them.

With all these empty shops appearing, small businesses need more help than they're getting.

What really made me cringe was all the council's backup of their backup money being under threat because it was held in Icelandic banks. It wasn't evn their backup money - it was their backup for their backupmoney. But they charge like rhinos when it comes to council tax and say thy need it badly or the sky will fall down.

Now is the time to help small businesses - before its too late.
14

bully wee alba,

Edinburgh 08/01/2009 18:32:41
#13
Have you heard of the “Business Bonus Scheme”, specifically aimed at helping small business in Scotland?

In what way exactly does LIT create difficulties for small businesses?
15

Alan B,

08/01/2009 19:53:57
#THE BPRENTICE

You do not seem to understand lit. It is not a tax on business but a personal tax paid by individuals.

16

THE BPRENTICE,

09/01/2009 08:58:43
# do you not understand the concet of a partnership or a sole trader?
17

THE BPRENTICE,

09/01/2009 08:59:24
that was for #15
18

THE BPRENTICE,

09/01/2009 09:00:32
#14 simple economics - economies of scale!! ... but f youdo't understand it, I don't blame you.

 

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