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John Swinney has refused to rule out another rise in income tax days after closing the door on further hikes . The First Minister said there had been a “tremendous moving of the ground” since Labour Chancellor Rachel Reeves fuelled speculation of a tax hike in her Budget. Swinney last month indicated he would not increase income tax in his pre-election Budget in January . But it has since been reported the UK Government could increase rates by two pence in the pound. Experts at the Fraser of Allander Institute have claimed such a move would reduce the Scottish budget by £1bn. Swinney could plug the gap by cutting spending or increasing income tax, which is devolved to Holyrood. Asked by Scottish Tory leader Russell Findlay if he could give a “cast iron guarantee” he will not increase income, business or property taxes, Swinney said: “The Scottish Government will set out our position on tax in the Budget on January 13, and we will obviously be considering all of the issues and implications of the United Kingdom Government’s Budget in November. “Decisions have to be taken very carefully on tax issues and the Chancellor will be accountable for the decisions she makes. “The Scottish Government will take our decisions accordingly and respond.” He later told journalists he was dealing with the “uncertainties” surrounding the UK Budget and the impact on Holyrood. “We also have got to recognise that there’s a changing landscape around about us, which I think has been fuelled by the Chancellor of the Exchequer.” Swinney said Reeves had previously claimed she would not come back for more tax rises and he had made his comments last week in that context. He said there had been a “tremendous moving of the ground” since then. The SNP Government has increased income tax in previous Budgets. To sign up to the Daily Record Politics newsletter, click here
