Copyright scotsman
Workers in Scotland face a tax “hammer blow”, it has been warned, after John Swinney failed to rule out further increases. Scottish Conservative leader Russell Findlay accused the First Minister of “plotting yet another income tax raid”. It comes amid speculation Chancellor Rachel Reeves could be preparing to increase the basic rate of income tax down south. Income tax rates and thresholds are devolved to Holyrood, but such a move could still have a big impact on Scotland’s block grant. READ MORE: What would a UK income tax hike mean for Scotland? An additional 2p on the UK basic rate would cost the Scottish Government £1 billion next year, according to the respected Fraser of Allander Institute. Mr Swinney previously ruled out any changes to income tax at the Scottish Budget, which is due to be published in January. But he failed to repeat this pledge when quizzed by the Scottish Tory leader during First Minister’s Questions in Holyrood. READ MORE: John Swinney rules out income tax hike in upcoming Scottish Budget “It will be a hammer blow to Scottish workers, who have got two left-wing parties who only want to tax, tax, tax,” Mr Findlay said. “Labour are doing the same as the SNP have done for the past decade. Most workers in Scotland pay more than those in the rest of the UK who do the same job and earn the same amount. “The SNP has increased taxes, driven away aspirational workers, damaged business confidence and held back Scotland’s economy. People deserve a break. “So will John Swinney give a cast-iron guarantee of no further tax rises, income, business and property, in the Scottish Budget?” The First Minister replied: “Mr Findlay won’t be surprised to hear me say that these questions will be answered in the Budget, when the Scottish Government sets out to Parliament the commitments that we are going to make. “And, of course, we have asked some people in Scotland to pay more in taxation. But what I would say is that the independent Scottish Fiscal Commission has confirmed that the majority of taxpayers in Scotland are set to pay less than they would elsewhere in the UK this year.” Anyone earning more than £30,318 pays more income tax in Scotland than if they lived south of the Border. Someone earning £50,000 pays £1,527 more, and a person earning £100,000 pays £3,331 more. READ MORE: Scotland-England income tax gap causing difficulties for firms, says City of London Mr Swinney said higher taxes helped pay for different provisions in Scotland, adding: “They mean that there are no tuition fees paid in our universities by university students. They mean that there is free bus travel for under-22s. “They mean that there are no prescription charges levied in Scotland. They mean that the Scottish Child Payment is helping to keep children out of poverty with a falling level of child poverty in Scotland.” Mr Findlay accused the First Minister of “spinning like a washing machine”. He said: “John Swinney’s answers today won’t reassure any Scottish worker, homeowner or business owner. He won’t rule out increasing the tax on buying a home, he won’t rule out raising taxes on businesses, and it seems that he’s plotting yet another income tax raid on hard-working Scots. “And on top of all that, the SNP’s plans could result in massive rises to council tax - reportedly as high as £6,500 a year. “Raising taxes every year is not sustainable. Workers and businesses can’t afford it. People deserve to keep more of their own hard-earned cash.” Mr Swinney said council tax in Scotland was lower on average than it is on properties in England. He accused the Tories of not being prepared to engage “in the tough judgements about delivering for public services”.
