Labour pledges tax cut for Scots

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The plan to reduce charges for the elderly by around £180 a year will be unveiled by First Minster Jack McConnell on Tuesday.

More than 600,000 pensioner households will benefit from the pledge, according to Labour.

Savings will be made by cutting their water and sewerage charges in half within two years. And the charges could potentially be scrapped completely within four years.

The first cut will be worth around £180 for pensioner households in a Band D property.

Mr McConnell said: "A quarter of the costs that pensioners pay in their council tax bills is for water and sewerage charges.

"Labour will cut them in half and eventually remove them completely. This will make a massive difference to the household bills that our pensioners pay."

The 50% cut will mean a saving ranging from £360 to £120 depending on the council tax band, Labour said.

The £85 million cost of the pledge is to be secured "through a combination of efficiencies in Scottish Water" and general subsidy from the Executive.

Council tax has been one of the key issues debated by parties in the run up to the Holyrood elections on May 3.