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Scotland faces subsidy setback

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Scottish plans to switch from council tax to a local income tax are in jeopardy after the British government appeared
to rule out a vital subsidy.

The Scottish National Party Government is committed to a tax switch, but its calculations depend on the continuation of a£400m council tax rebate from Whitehall.

But work and pensions secretary James Purnell said: “If they are promoting a system based on ability to pay, there is no need for a benefit on top of that.”

A Scottish Government spokesman said the move will not place any greater burden on the UK government and that it should continue to provide the same level of support.

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