Councillor Graeme Morrice said that the so-called ''local'' income tax was ''neither local nor fairer'' and would make Scotland the ''highest taxed part of the United Kingdom''.

Councillor Morrice's comments came as West Lothian Council readied itself to decide its response to the Scottish Government's proposals. That meeting takes place today (Friday). The response deadline is June 3.

The Scottish Government proposals include:
• A tax free personal allowance matching the UK personal allowance levels
• A 3 per cent rate applied to the income that is subject to basic and higher rates of
UK income tax
• Collection that complements the existing system of collection through Pay as
you Earn (PAYE) and self assessment
• Exemptions for savings and investment income
• A tax for second homes, which will be subject to local requirements, and broadly comparable to the current council tax on second homes.

Councillor Morrice said: ''Whilst accepting that council tax needs to be reformed to make it fairer for those on lower and middle incomes, the SNP's plans will hit every single person paying income tax, including many pensioners and – for the first time – students working whilst studying. Yet the millionaire living off income from shares will pay nothing at all.''

''Neither is the tax 'local' as the extra amount in income tax Scots will be forced to pay will be set centrally by the Scottish Government. In one foul swoop this will end local accountability, as councils will no longer be allowed to set their own taxation levels based on local priorities. This is a serious blow to local democracy by this SNP Government,'' he added.

He also fears that the new tax proposal would leave councils short of cash, forcing cuts in services and redundancies.

Many fear this would have a detrimental impact on the Scottish economy and end up being 'Scotland's new poll tax', he said.

Labour is proposing a major reform of the council tax to ensure it is much fairer where people on lower incomes pay less, and that water and sewage charges for pensioner households are completely abolished.