Oh dear the SNP's palns to set their 'local' income tax LIT centrally at Holyrood has run into the buffers at the Treasury.
Apparently the SNP trying to control the ammount set central as well as using the Inland Revenue to collect the taxation throws it outwith the powers devolved to the Scottish Parliament.
Of course there are alternatives. One is to maintiain the local link by allowing council to set their own rate of LIT. This is of course one of the key differences between Liberal Democrat proposals and those that the Nats took up once they realised it was a pretty neat idea. It would maintain the local level, the collection issue is probably less of an issue for the Treasury than the loss of setting the rate.
So I'm offering Alex Salmond and his Finance Minister John Swinney, these sage pieces of advice. First take on the Lib Dem local accountability element for LIT and not set it from your offices in Holyrood, local taxes have always been set by the local authorities who need to fund their spending from that revenue. Second if you don't want to do that you're more that welcome to join the other parties to get more power and greater fiscal autonomy by revisiting the Scotland Act.