Tom Gordon

Scottish Political Editor

COUNCIL leaders have called for the power to create a raft of new local taxes.

Cosla, the umbrella group representing most of Scotland's 32 councils, said local authorities should be able to levy taxes, without government permission, on "either residents, occupants, property owners or visitors" or "within a discrete area" of any council.

The change would lead to the "fiscal empowerment" of local government, it said.

The idea is included in a submission to the Scottish Government's Commission on Local Tax Reform, which was agreed by Cosla's summer convention on Friday.

The paper called for a "modernised" council tax, an immediate end to the council tax freeze, and local control over business rates.

It said council tax should be improved by adding more bands at the top and bottom of the current eight-band scale; widening the 3:1 ratio between the top and bottom bands; and revaluing properties every five years - council tax is still based on 1991 values.

The paper said that, although imperfect, council tax met most of the tests for a good tax: fair, easy to understand, easy to administer, hard to avoid, and stable.

Cosla also said councils should ultimately raise half their £10bn budget locally, with the other half from central government, instead of the current 18 per cent raised through council tax.

The extra would come from letting councils set business rates for the first time since they were centralised in 1990, and devolving land and building transaction tax to town halls.

Calling for the power to "complement" council tax with new taxes "with the assent of local communities", Cosla said: "Local taxation should allow for local flexibility, empowering local authorities to raise local funding for local priorities. Specifically, individual local authorities should be empowered to introduce local taxes, at their discretion, to raise additional resource."

Set up last year by Nicola Sturgeon,the tax commission is due to report on a "fairer" local tax system for Scotland by September.

Among the options are a reformed council tax, other property taxes, land value tax, sales tax and local income tax.

The outcome is expected to inform the 2016 election campaign, when all parties will be expected to set out local tax reforms.

Since the SNP introduced it in 2008, the council tax freeze has become increasingly unaffordable.

This year alone it will cost £560m, bringing its cumulative cost to date to £2.5bn.