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The big freeze

Brian Taylor | 12:21 UK time, Wednesday, 11 February 2009

UPDATE:And so local income tax is no more. Or at least not for this present Scottish Parliament.

John Swinney has announced that he will not proceed with plans for LIT until after the next election.

According to Mr Swinney, this is because he cannot command a parliamentary majority on the issue - and because there are cuts coming down the line from Westminster which threaten to destabilise council finances.

Not the environment, he argues, in which to attempt a complete overhaul in the system of funding local authorities.

The announcement - at the start of the debate on local government finance - produced a sharp reaction from opposition parties.

Labour's Andy Kerr said it was the "biggest retreat" in the history of this parliament. He added that it was now plain that the SNP had been elected on a false prospectus.

Expect much more of this from Labour - in the shape of accusations that key SNP policies are being steadily dropped. Expect to hear revived talk of student debt and support for first time house buyers.

The SNP answer? Welcome to minority government.

Equally, though, this move will enable Mr Swinney to build a strengthened relationship with the business sector - upon whom he will rely heavily in efforts to combat recession.

Business organisations don't always agree with each other on everything. Indeed, they are occasionally disputatious. But they cordially loathed LIT - and said so, repeatedly.

- - - - - - - -

Now we get down to details - and to a substantive political argument. Will the help to stimulate the economy?

If it doesn't, who will take the blame?

Two items today. Firstly, we have further evidence, if it were needed, that the economy is in severe trouble.

Just .

Secondly, MSPs will today .

John Swinney, the finance secretary, will stress that this is a relatively good deal, that he has taken steps to enhance the cash available to councils, that he has included money to enable a further year of council tax freeze.

Opposition critics will point to examples of constraint around the country: from Highland to Dumfries and Galloway.

I would be grateful for your input. What's happening in your area? Are there damaging cuts - or are councils protesting too much? Could they find productive savings to release money?

How about capital spending? Are the projects under way?

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