New alternative to the Council Tax should be embraced says charity

Citizens Advice Scotland (CAS) has welcomed a report calling for an end to the council tax and its replacement by a fairer system.

The Commission on Local Tax Reform looked at alternatives to the current system and outlined three options, one based on property, the others on land and income.

The cross-party body believes any new system should continue to be one of "general tax" rather than a "system of charges for specific services".

CAS policy manager Keith Dryburgh said as council tax is one of the most common issues on which people seek CAB advice, a new system was urgently needed.

Last year CAB advisers dealt with more than 29,000 new issues related to the tax - over 100 such issues per working day, he said.

“If anything, we believe these figures may under-estimate the impact of Council Tax on people’s lives,” he added.

The current system is causing too many problems, particularly for low income households

“The current system is causing too many problems, particularly for low income households.

“These problems include affordability, the way in which debt is collected, and how the charges are communicated.

“We made all of this evidence available to the commission and we are pleased it has been taken on board.

Dryburgh added the focus must be on building a new system that is “fair, clear and affordable.”

CAS stopped short of recommending any particular alternative to the current system, but said that any new system must follow four basic principles.

These are: be transparent and easy to understand; be sensitive to the impact on low income households; prevent debts, rather than worsening them; and that arrears are collected in a fair and proportionate fashion.

The reform group was set up by the Scottish government and the Convention of Scottish Local Authorities in February 2015 and was tasked with examining alternatives that would "deliver a fairer system of local taxation".