Wednesday, November 02, 2005

Split over council tax increases

Scotsman:

FURTHER differences within the Holyrood coalition surfaced yesterday when George Lyon, the Liberal Democrat deputy minister for finance, failed to back his Labour boss over 2006 council tax rises.

Under questioning by the finance committee, Mr Lyon refused to endorse Tom McCabe's claim that local authorities should keep council tax rises to 2.5 per cent or less.

In a letter to the parliament's finance committee, Mr McCabe, the minister for finance and public service reform, said earlier in the year that there was 'no reason' for any council tax rises above 2.5 per cent.

But under pressure from Tommy Sheridan, the Scottish Socialist MSP, Mr Lyon refused to repeat Mr McCabe's view. The minister told Mr Sheridan: 'I believe that the councils should be able to keep the council tax increases as low as possible.'

Pressed on the specific 2.5 per cent figure, he added: 'My view is that they should be able to keep it as near to that figure as they can.' Mr Lyon said the early indications were that three authorities were planning rises of about 4 per cent.

Mr Sheridan added: 'The Labour minister has made a completely unrealistic statement and the Liberal Democrat minister was not prepared to support that.'