Alex Salmond has unveiled the timetable for a referendum on Scottish independence in 2010 at the opening of the Scottish national party's (SNP) legislative agenda in Holyrood.The announcement of the bill guaranteeing the referendum provoked noisy exchanges in the chamber, but it was widely expected, having formed a crucial part of the SNP's manifesto. Mr Salmond also underlined plans to abolish council tax and replace it with a local income tax. He claims it will provide a £281 million tax cut – "the biggest tax cut in a generation". Describing the tax as "regressive and unfair", Mr Salmond said its replacement would lift 85,000 households from poverty. "I have no doubt that Scotland will judge harshly any MSP that judges to keep the council tax in the face of the overwhelming benefit that would flow to ordinary Scots," Mr Salmond continued. The party claim the "vast majority of Scots will be better off as result" following the implementation of a revised system based on a progressive local scale. However, responding to the statement Labour said many flagship SNP policies were already "completely discredited". The party's finance secretary, John Swinney, has previously stated the proposals will mean the biggest tax cut in Scotland in a generation, with those on low and middle incomes better off by an average £350 to £535 a year. Mr Swinney said: "The proposal to scrap the council tax and replace it with a local income tax represents the most progressive overhaul of Scottish taxation in years and real help for hard-pressed taxpayers. "This reform is designed to offer most help to those on low and middle incomes and represents the biggest tax cut for a generation." The SNP proposes: A three per cent rate of tax applied to the income that is already subject to basic and higher rates of UK income tax. A tax free personal allowance that matches the UK personal allowance levels. Collection that complements the existing national system through Pay as You Earn (PAYE) and self-assessment. Exemptions for savings and investment income. A tax for second homes, subject to local requirements and with flexibility for councils to determine the rate of tax. It is proposed this will be collected by councils. Three of the 15 bills in today's programme focus on the environment, including one to target marine conservation, with the Climate Change Bill setting tough new targets. The SNP also plan a series of public health measures, including raising the minimum age for buying alcohol to 21 and restrictions on the sale of tobacco. The chamber was filled while Mr Salmond, clearly relishing being back in the thick of things after the summer break, read out the programme.
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