WE’LL GIVE SCOTS TROOPS PAY RISE
Tories plan hike to wipe out SNP tax changes
DEFENCE Secretary Gavin Williamson is planning a pay rise for soldiers to counter measures that could see some pay higher taxes.
About 8000 members of the forces are said to be affected after the SNP Government brought in new income tax bands and increased tax levels for some.
Williamson said: “The SNP’s tax hike unfairly hits 70 per cent of our brave and loyal service personnel based in Scotland, leaving thousands of them out of pocket. This is wrong.
“I am working to ensure those who are affected do not feel they are being punished by serving in Scotland.
“We are urgently reviewing how we can counter this unjustified raid on the pay packets of our armed forces.”
Last month’s Budget changes will see higher earners pay more and lower earners pay less.
The five-band system creates a 19 per cent rate for lower earners and a 21 per cent rate for earnings of more than £24,000.
The higher and additional rates will be increased to 41 per cent and 46 per cent respectively. Analysis says those earning more than £26,000 will pay more tax in comparison with their counterparts in the rest of the UK.
Scots Secretary David Mundell said: “Our servicemen and women make a huge contribution to the communities and the economy.”
“The Scottish Government’s decision to make Scotland the most highly taxed part of the UK means they would be penalised for being stationed here. It’s absolutely right we take steps to address that.”
Hundreds of service personnel are due to move to Scotland in the coming years, with many not able to decide where they are posted.
A Scottish Government spokesman said: “Keith Brown, Cabinet Secretary for the Economy, Jobs and Fair Work, wrote to the Defence Secretary in February with an offer to consider constructive proposals by the UK Government to address the differential taxation of military personnel.
“He was clear that any proposals must respect the Scottish Government’s income tax policy, and, in particular, should not disadvantage those earning under £26,000 who will pay less under our income tax proposals than they would under tax rates applicable in the rest of the UK.
“It is disappointing that no response has yet been received.