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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