Sturgeon: Tory tax cut for rich is not a priority in Scotland
HALLOWEEN BUDGET NO BOOST FOR THE BETTER OFF
BY ANDY PHILIP NICOLA Sturgeon has signalled that high earners in Scotland should not expect the same kind of tax cuts as Chancellor Philip Hammond announced yesterday.
The 40 per cent higher rate of tax band will increase from £46,350 to £50,000 in April under plans announced in the Budget.
In Scotland, the higher personal tax rate is 41p, and kicks in at £43,431, meaning that middle class earners such as doctors and promoted teachers in Scotland already pay more than their equivalents in England.
The latest tax change announced by the Chancellor means the gap will become even bigger unless Finance Secretary Derek Mackay adjusts the rates for Scots taxpayers next month.
But last night, a spokeswoman for the First Minster suggested that the Scottish Government did not want to pass on tax breaks for the wealthy while public services continue to struggle.
She said: “We set the tax rates in Scotland. We have chosen to take a different path, which is progressive, which means vast majority of people pay less tax.
“We have been consistent and we have not thought that the better off can get tax cuts for the Tories while public services are being cut.”
The spokeswoman added: “Passing on Tory tax cuts for the better off is not our priority.”
Under devolved tax powers, the Scottish Parliament has powers to set its own rates.
The minority SNP Government must decide how to react to the UK Budget announcement when they set their own tax rates next month.
Scots Conservative MP John Lamont called for the tax break to be passed on to Scottish taxpayers.
He said: “Scotland is already the highest taxed part of the UK so the case for more SNP tax rises in the Scottish Government budget is unsustainable.
“Nicola Sturgeon needs to rule this out in her budget and replace it with a plan to support jobs and economic growth.”
Hammond’s decisions yesterday generated about £950million for Scotland over two years.
He also froze whisky duty, kept the headline tax rates on oil revenue and pledged £12million for fishing technology and safety.
Hammond also confirmed £150million for a Tay Cities Deal,
We have chosen to take a different path SPOKESWOMAN FOR NICOLA STURGEON First Minister says passing on Tory tax cuts for better off is not a priority when public services are struggling
adding to £200million from the Scottish Government. It aims to boost the economy in and around Dundee.
The SNP also claimed that the Budget had short-changed Scotland.
Mackay said the resource block grant is £2billion lower in real terms than it was in 2010.
The SNP also said health spending of £550million was smaller than expected and the headline figure cannot be spent in one year.
The Scottish Government promised to pass on any extra health spending generated through the UK budget to the Scottish health service.
Mackay said: “This Budget falls a long way short of delivering for Scotland.
“There was little in this budget to boost our public services.
“The reality of today’s Budget is that Scotland continues to be hit by UK austerity and the decision to leave the EU.”
The spirits announcement means whisky will be 30p cheaper than it would have been with inflation forecast by the Office for Budget Responsibility.
Hammond announced the whisky duty freeze days after Scots Tory leader Ruth Davidson gave birth to a baby boy.
At the Commons, Hammond said: “I will freeze duty on spirits – so we can all afford to raise a wee dram to Ruth Davidson on the arrival of baby Finn.”
David Mundell, the Scottish Secretary in the UK Government, said: “The Chancellor’s decisions mean there will be an extra £1billion to invest in public services in Scotland.
“I urge the Scottish Government to use this extra money to support the NHS in Scotland, fix the roads, boost Scotland’s economy and reinvigorate Scotland’s high streets.
“The freeze on spirits duty will be a boost to Scotland’s whisky industry, maintaining the favourable tax climate for oil and gas will continue to help support the recovery of the sector, investing in fisheries technology will help support a key industry, and freezing beer duty will support brewers.”