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.