THE success of your Great Rates Revolt campaign in achieving additional
rate relief to segments of Scottish business (“Mackay bows to rates hike
fears with £45m package”, The Herald, February 22) highlights the contrast
with the failure of Holyrood to keep its promise to eliminate fuel poverty
affecting 40 per cent of Scottish households by the end of 2016.
In addition, there is a deafening silence on the consequences of a Yes vote
at a second independence referendum. At present, Scottish energy bills show
that around 11p in every pound paid is a flat rate tax that funds the
renewable green levies. Hence, for the 40 per cent of Scots in fuel
poverty, if they can afford a dual fuel contract, then an average yearly
bill of £900 means that around £99 a year underpins the subsidies paid to
the wealthy owners of biomass units or wind turbines.
Currently 92 per cent of the subsidy is paid by English and Welsh consumers
but a Yes vote makes such an arrangement illegal and Scottish consumers
would have to underwrite 100 per cent of the subsidies paid to the Scottish
renewable sector. That means the flat rate tax would increase by a factor
of 12.5, raising the £99 yearly payment to over £1,200 a year and an annual
energy bill to more than £2,000.
It is to be hoped that if there was such support for a revised rate package
for Scottish business then there can be similar support amongst Scots to
include the elimination of fuel poverty as part of an independence
referendum campaign.
Ian Moir,
79 Queen Street, Castle Douglas.
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