Copyright scotsman
A Labour government in Westminster whose popularity has plummeted since seizing power last year is now expected to break a pre-election party manifesto pledge by raising income tax by 2p. Here in Scotland, where anyone earning more than £30,318 already pays more in income tax than south of the Border, the messaging is also raising alarm bells. Yesterday, Finance Secretary Shona Robison left no doubt that a rise in income tax was now a distinct possibility, admitting she would “potentially revisit” previous commitments not to raise the levy next year. What has been largely missing, however, within this debate is any clear plan on how economic growth can be supercharged and, in doing so, avoid revisiting the further need for tax rises or widespread cuts to spending in another year or two’s time. This morning, Labour will attempt to set out its vision for ushering in a new age of regional economic growth in Scotland. This vision will be centred around a report written by renowned economist Professor Sir Anton Muscatelli, who has examined how Scotland might unlock the full potential of its regional economies. "For two decades, Scottish politics has been an economics-free zone,” Scottish Labour leader Anas Sarwar says. "We all want to see social change driven by proper policymaking, but the truth is that we cannot have the social policies we need if we do not have a thriving and growing economy.” Without a viable plan for growth and pro-business policies, the next government elected to Holyrood in 2026 will find themselves stuck in a doom loop where all they can do is cut, cut, cut. Whether Scottish Labour’s vision goes any way to providing meaningful solutions comes with a massive asterisk, but it is at least a start. The proof, as they say, will be in the pudding.
