DEREK Mackay has said he is open to scrapping council tax amid calls for legislation to be introduced after the next Holyrood election.

The Finance Secretary reiterated the SNP’s willingness to reform local taxation as he seeks to win support from the Scottish Greens to push his Budget through parliament.

It comes after Nicola Sturgeon opened the door to a town hall revolution at First Minister’s Questions.

She told MSPs: “I very much hope that we can come to an agreement that sees a commitment made to local tax reform and a greater commitment to the devolution of tax powers to local authorities.”

Mr Mackay unveiled his Scottish Budget last week, which will usher through a growing income tax gap between Scotland and the rest of the UK.

However he needs the support of MSPs from other parties to get his spending plans through Holyrood.

After helping the minority SNP administration secure its last two Budgets, the Greens warned they would not back a third without meaningful progress on tax reform.

They want to overhaul local taxation and scrap council tax, replacing it with an annual levy of around 1% of the value of a person’s house – a move which would see some bills balloon.

Green co-convener Patrick Harvie said his party would not vote for Mr Mackay’s Budget in its current form.

He told the BBC’s Sunday Politics Scotland: “It’s clear that changes are needed, but I hope that the SNP are going to be a bit smarter about this than for example Theresa May, who’s saying, ‘Vote for my deal, or I’ll march the country off a cliff.’

“I think they know that they need to compromise. They need to work with others and genuinely seek common ground.”

He said abolishing council tax could not be done in a single year – or even before the 2021 Holyrood election.

He added: “But we are asking for solid implementation steps forward, producing legislation that can be introduced after the next election.”

Mr Mackay said he is “open to conversations” on tax reform, adding: “I have constructive talks with the Greens.

"They have actually been a constructive opposition party doing their job, unlike the other opposition parties. But I’ll engage constructively on this issue.”

He added: “Specifically on taxation, I’m open to reform. I’m open to further discussions with opposition parties.”

The SNP promised to scrap council tax when it came to power in 2007, but ended up freezing the levy for nine years instead.