Lack of local tax reform 'one of Holyrood's biggest failures'

Patrick Harvie told The National it was “amazing” that no Scottish government had fully utilised the powers in place since 1999 which give them complete freedom to create locally enforced taxes.

A Green MSP and former government minister, Harvie argued that empowering councils with a “bigger basket of different tax policies” could lay the groundwork for the type of independent Scotland he would like to see.

“The Scottish Parliament has always had complete freedom of power on tax, so long as it's tax raised for local purposes,” he said.

READ MORE: Scotland needs to introduce a land value tax – here's why

“I think it's one of the biggest failures of devolution that we haven't properly used that power.

“We're starting now to see some small additional powers given to local authorities. That's good progress. Whether that's second and empty homes, whether it's the tourism tax, all those kinds of things.

“If that had been started 10 or 15 years earlier, we might be a lot further forward in having local authorities with a basket of tax powers, as is kind of normal in quite a few other European countries.”

Before the SNP were first elected to government in 2007, they were already promising reform of council tax. However, 17 years later they have still not moved on it.

Harvie said that his Green party had pushed the SNP into adopting the progressive income tax rises which are currently in place in Scotland, saying that many in that party had been “very cautious, very nervous” to be seen raising taxes.

Patrick Harvie photographed during his time as a Scottish Government minister (Image: PA) “Some people in the SNP were worried … when we first proposed using the income tax powers, and I think they were surprised,” he said.

“It took us years after those powers were devolved to persuade the SNP, not just that this is necessary, but people will support this.

“I think if you demonstrate that you're applying tax fairly … most people will support it.”

The Green co-leader said that the more tax powers which are created for Scottish local authorities to use, the more flexibility there will be for each to decide how best to respond to its own circumstances.

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Harvie said: “The tourism levy is going to be more useful in some parts of the country than in others. That's why you want a bigger basket of different tax policies, because some will be useful in one place, others will be useful in a different place in different contexts and at different times.

“I mean, one of the reasons why we think land value tax should have a role to play in an ideal scenario is that it actually gives local authorities much more ability, in concert with the planning system, to put incentives to bring land into good economic, productive use.”

He went on: “One of the things that we've consistently argued is that [local government funding] needs to be seen in the context of additional financial powers for local government as well, so that they are less dependent in future on what block grant is and more able to raise revenue in the way that they see fit in their own local circumstances. Council tax reform would be the long-term aspiration.”

READ MORE: I am in arrears for council tax – it feels awful and there should be more help

Speaking in 2020, Harvie’s former MSP colleague Andy Wightman told Holyrood magazine: “Give me powerful, strong, meaningful local government and I'll reject Scottish independence.”

Asked if this then summed up his view as well, Harvie said it was “not the only thing I don't agree with Andy Wightman about”.

However, he went on: “I would frame it very, very differently. I think the idea of genuinely powerful local communities is very consistent with a vision of independence.

“I think it's part of the purpose of independence, empowering the people of Scotland – and not only empowering them as the people of the whole of Scotland, but empowering them in every community of Scotland.”