Families face tax bombshell to fund lavish giveaways

MIDDLE-CLASS families are facing a new round of swingeing increases in the amount of tax they have to pay.

Nicola Sturgeon announced yesterday that ‘the time is right’ to consider an increase in income tax and other devolved taxes.

She said she would publish proposals within weeks for increases to be contained in the Scottish Government’s Budget.

And she said she would consider the views of the other parties before deciding what to propose. Labour, the Liberal Democrats and the Greens all support tax rises – with only the Conservatives opposed.

Miss Sturgeon also announced controversial plans to consider a ‘citizens income’ – a radical proposal that would provide a universal basic income to everyone, allowing them to then decide whether to earn more by choosing to work.

Yesterday, the First Minister said she was ‘mindful that as a minority government we must build alliances across parliament in support of our Budget’.

She added: ‘We know that continued Westminster austerity, the consequences of Brexit and the impact of demographic changes will put increasing pressure on our public services and on our ability to provide the infrastructure and support that our businesses need to thrive.

‘So the time is right, in my view, to open a discussion about how responsible and progressive use of our tax powers could help build the kind of country we want to be – one with the highest quality public services, well-rewarded public servants, good support for business, a strong social contract and effective policies to tackle poverty and inequality.

‘Ahead of the Budget, we will publish a paper that will set out the current distribution of income tax liabilities in Scotland; analyse a variety of different options, including the proposals of the other parties across parliament; explain the interaction between tax policy and the fiscal framework, and provide international comparisons. The purpose of this paper will be to inform the discussions we will have with other parties ahead of the Budget.’

She added: ‘I give an assurance today that the Scottish Government will go into these discussions with an open mind and with the best interests of the country as a whole as our guiding principle, and I invite other parties to do likewise.’

Miss Sturgeon has asked her Council of Economic Advisers to provide further advice on the impact of a 50p top rate of tax.

The idea of a ‘citizen’s income’ has been proposed by the Scottish Greens for several years. The party has argued that each adult should receive £100 a week, or £5,200 a year, from the State, while children should get £2,600. But others have suggested that the basic income should be much higher, at £15,000-£20,000.

Yesterday, Miss Sturgeon said the idea is attracting interest internationally, and added: ‘Contemplating such a scheme inevitably raises a number of practical issues and questions, not least around the current powers of this parliament – and undoubtedly there are arguments for and against.

‘But, as we look ahead to the next decade and beyond, it is an idea that merits deeper consideration. I can therefore confirm that the Scottish Government will work with interested local authorities to fund research into the concept and feasibility of a citizens’ basic income, to help inform parliament’s thinking for the future.’

Scottish Tory leader Ruth Davidson said the proposal was simply a ‘bone she’s throwing at the Greens’. On the threat of tax rises, she said: ‘We will continue to argue this year that dragging Scotland down with ever more punitive taxes is not the right way.

‘The First Minister is opening the door on greater tax rises today. We say stop taking ever-more money from the pockets of Scotland’s workers.’