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Local tax 'worse than poll tax' to Scots service personnel



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Published Date: 21 July 2008
BRITAIN'S armed forces minister yesterday expressed "serious concerns" over Scottish Government proposals for a local income tax.
Bob Ainsworth said the introduction of the controversial tax would have a "damaging" impact on Scottish service personnel and could lower morale.

In a letter to John Swinney, Scotland's finance secretary, Mr Ainsworth also said Ministry of Defenc
e ministers felt the local income tax would be more unfair in its impact on the armed forces than the poll tax.

Under the SNP proposal, the tax would be set at 3p in the pound, replacing the current council tax system.

Servicemen and women currently have their council tax paid by the Ministry of Defence, who take a deduction from their pay by way of a contribution.

Mr Ainsworth said: "I have extremely serious concerns over the replacement of council tax with a local income tax and the damaging impact it would have on service and MoD civilian personnel, especially those younger and lower paid personnel."

Mr Ainsworth added that the charges paid by privates would rise from £33 a year to £600. "An army warrant officer's payments would increase from £84 a year to £1,570 and a navy commander would have to pay £2,924 per annum instead of £113."

"We cannot quantify the cost of necessary changes to our payroll system without details of the system you are proposing. But it should be compared with the introduction of the poll tax, which required the establishment of a new administrative team.

"The money required to fund this would reduce the resources that we can get to the frontline."



The full article contains 275 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 21 July 2008 12:24 AM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Scottish National Party
 
1

Coileach an taobh Tuath,

21/07/2008 00:07:29
Same story in the Herald

It's highly likely that LIT, just like the council tax, armed services personal living in MoD properties will be exempt from payment of LIT.

The full details of LIT have not been announced yet and may well include a full exemption for all soldiers living in MoD property or whilst on service.....

The confirmation that Servicemen and women currently have their council tax paid by the Ministry of Defence, who take a deduction from their pay by way of a contribution, should tell you all you need to know about this mischievous story emanating from Des Browne's orifice.

Something however doesn't make sense in the figures that the MoD are stating......

Bob Ainsworth, Defence Minister wrote the following

"An army warrant officer's payments would increase from £84 a year to £1,570 and a navy commander would have to pay £2,924 per annum instead of £113....He also claimed that the charges paid by privates would rise from £33 a year to £600......"

These are all based on soldiers who live in property owned by the Ministry of Defence.

The MoD manages nearly 4,000 homes across Scotland,their housing budget in Scotland has dropped by almost £8m in the last year..... Mr Browne has already admitted that some of it was "a disgrace" - which he attributed to under-funding.

Any Soldier/Families privately renting or owning their home will currently be paying full council tax with a service rebate.

The MoD's scenario's...............

To be paying the claimed £600, you'd need to be earning over £25k

Typical Private's pay is from £13000-18000
Typical Lance Corporal's Pay is around £20-39000
Typical Sergeant's Pay is around £42000

For the typical Private LIT would be between £180-450

As for the Officers, it's highly unlikely the two ranks cited by the Defence Minister above are on pay are living in squalid army barracks..... more likely in private houses attracting full council tax.

To be paying the claimed £1570, you
2

Coileach an taobh Tuath,

21/07/2008 00:08:00
cont'd


To be paying the claimed £1570, you 'd have to be earning well over £55k annually......
An Army Warrant Officer Level 4 actually gets paid £42,389.16

That would be £1090, less than Band D Council Tax


To be paying the claimed £2,924 , you'd have to be earning well over £90k annually....

An RN Commander Level 6 actually gets paid £71,158.56

That would be £1968, equivalent to Band G Council Tax


In summary, many MoD staff are likely to be better off without having council tax, the consultation will take account of exemption groups like this.

Source for Salaries www.navycs.com
3

sawney hasbeen,

dumbfries and galloway 21/07/2008 07:22:04
So the MOD pay Council Tax just now? Doubt it.
4

gus1940,

Edinburgh 21/07/2008 08:20:25
A professional journalist would have taken the trouble to ask the governmeent for comments on the negative comments in the article.

Still, I suppose it is just par for the course for the hardline unionist Anti-Scotsman.
5

Legacy,

21/07/2008 10:54:32
It's Getting Boring
*
Why Don't We have,
A Cover All Eventualities Story Tomorrow, Like:
'EXCLUSIVE-NEW LABOUR ARE RUNNING SCARED OVER LIT'
*
That should just about cover it!
6

Scottish 'N British,

21/07/2008 11:59:38
Yet another example of a group set to lose out, this time the armed forces.

As the line up of experts finding major faluts in Swinney's CA-LIT increase almost daily, is there to be any response from Separatists, aside from the-now-all-to-be-expected accusations of an anti-SNP conspiracy, that is?



7

Allan(handofgod137),

21/07/2008 12:31:05
#6 Quite right, as soon as any of the nats plans start unravelling, or broken promises are highlighted, the cybernats rush to their defence.
8

Scottish 'N British,

21/07/2008 16:52:27
Aye, they're coming a cropper, right enough. Appear to be running oot o' steam, though.

Perhaps they're oot on the streets of Glasgow East!

So many promises, made up on the back of an envelope.
Sad, really.

You can fool all of the people....


9

democracy,

Scottish Borders 21/07/2008 22:18:37
I note with interest those who knock the LIT, use minority groups to force their case, showing everyone what a weak case it is!
The reality is about the majority, NOT the minority, the pensioners and low to medium wage earners, NOT the businesses and high earners!

Taxes can be fair or unfair, but attempting to discredit the former to justify the latter is total ignorance!!
10

Highland Mighty©,

22/07/2008 00:19:28
9. What about the wealthy who receive their income from dividends? They will not pay LIT.

What about the unemployed and the sicknote brigade? They will not pay LIT.

Which leaves your majority in the middle paying it all.

Especially the multi-income households who will see their bills rocket.

And even then, not enough is being raised so funding will have to be taken from other public services!

And you wonder why so many professional organisations are against it?

 

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