UNISON's
approach
Renewed investment in public services in Scotland has made
a real difference to peoples lives, strengthened our communities
and the economy. To ensure that resources are available
to meet genuine social needs we need to recognise the link
between public spending and fair taxation. Quality public
services benefit everyone in Scotland and the best off in
our society should contribute a higher proportion of their
wealth in taxation. As international studies show, more
equal societies almost always do better.
BACKGROUND & OUTLOOK
High quality public services are central to the quality
of life of Scotland’s citizens. Not only are public
services essential to those in need; they are the glue that
holds society together as a whole. Public services are the
foundation of a fair society that combines economic strength
with social cohesion. Their importance increases at times
of economic crisis.
Investment in public services is now essential: public
works. The public sector will support us through this crisis.
It will lead the recovery by both delivering services and
providing the stimulus to support the private sector. Far
from crowding out the private sector the public sector supports
business. The market has consistently failed to deliver
the infrastructure required for a successful economy: public
transport, roads, an educated and healthy population, a
fair and binding legal system- all require public investment
and direction.
At an international level, there is no significant
link between countries with high economic growth rates over
the 1990s and levels of government spending and personal
taxation. Equally significant is the relationship between
tax receipts and income equality. Countries with higher
state involvement generally have lower levels of income
inequality, suggesting that government intervention remains
important in ensuring wealth is fairly distributed.
The taxes we pay are great value for money. Public delivery
provides value for money through economies of scale and
stopping shareholders taking profits out of the pot. Democratic
control allows users a clear say in how services are run.
The average household receives more than £10 000 a
year in benefits and services. Just having your bins collected
by the private sector would cost you £45 per week
(£2340 per year). This shows what good value council
tax provides. Public refuse collection also means that all
the refuse is collected and other people’s unwillingness
to pay doesn’t lead to the spread of vermin and disease.
Secure long-term funding is crucial if public services
are to plan for the future. As public services involve users
in making decisions about future services it is even more
important that information is available about the future
level of resources. This equally applies to the funding
of community and voluntary organisations in order to assist
them in raising their standards of provision.
Conventional borrowing remains the most cost effective
and flexible method of financing public services. It retains
accountability and enables public authorities to engage
in genuine consultation with service users without the smokescreen
of commercial confidentiality.
To ensure that resources are available to meet genuine
social needs we need to recognise the link between public
spending and fair taxation. Quality public services benefit
everyone in Scotland and the best off in our society should
contribute a higher proportion of their wealth in taxation.
In order to build a fairer and more sustainable society
we need fair taxation and a crackdown on tax avoidance.
The wealthiest in our society need to pay their fair share.
International studies show that even the super rich live
healthier and happier lives in more equal societies. High
income tax for the super rich tax makes society fairer by
both providing resources to pay for services and by reducing
the wealth inequalities that cause so much harm to our society.
The Scottish Government needs the power to vary income
tax on both the basic and higher rates by up to 10%. The
current power means that the government can only raise taxes
for all payers rather than target those who can afford to
pay more.
A property-based tax is the best way to fund local services
– it is a reasonable indicator of wealth, simple to
collect and hard to avoid. You don’t find the wealthy
living in small high rise flats in poor areas rather than
pay council tax on large houses in smart areas.
The Scottish Government has wasted two years pursuing its
unfair and unworkable local income tax. Parties in the parliament
need to revisit the Burt Report and work together to create
a fair local property tax.
UNISON believes that the fairer Local Property Tax
can be achieved by:
- new banding system with a wider range of top and bottom
bands
- change in multiplier rate between bands to make system
fairer
- regular and frequent revaluation to match wealth with
bills
- overhaul Council Tax Benefit to make it more accessible
- consider the value of land and not just property to
improve the greenness of the tax
Investment and equality are they key to a successful economy
and society. Excellent public services will make our society
fairer and lead us out of recession. Building these means
we must have adequate funding through a fair and workable
tax system. The current economic crisis makes this
clear.
Draft published: 5 December 2009
Current version updated: 27 January 2010
Members and branches can help to develop these
policy ideas further.
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voices for change - PUBLIC WORKS!
