Threat of tax rise grows in SNP ‘lurch to the Left’
MSPs back rate increase calls
THE threat of a tax rise for hardworking Scots grew yesterday as the SNP set out to find a consensus on a ‘progressive’ new policy.
MSPs backed a motion calling for a rise in income tax – with Labour, Liberal Democrats and the Greens all voting in favour of changes to rates and bands.
The Nationalists abstained from the Holyrood vote despite opposition demands to ‘come off the fence’.
The Scottish Government is to hold talks with opposition parties in a bid to frame a ‘progressive tax policy’ which could be put forward in this year’s budget.
Finance Secretary Derek Mackay told MSPs the SNP would not ‘prejudge’ cross-party discussions on the issue.
But the party voted down Conservative calls to rule out tax rises, which led to claims the Scottish Government is ‘lurching to the Left’.
The Scottish parliament took control of income tax rates and bands in 2016, but ministers have so far opted not to change the basic rate from that which applies south of the Border.
The Scottish Government wants to have cross-party talks on income tax ahead of publishing the draft budget for 2018-19, and has called for opposition parties to come forward with their proposals.
Mr Mackay told MSPs: ‘I want there to be an open and constructive debate, and so I and my colleagues will not prejudge the outcome of that discussion.’
But Scottish Tory finance spokesman Murdo Fraser said the vote was the ‘clearest sign yet’ that the SNP is set for a ‘tax raid on the majority of Scotland’s workers’.
He said: ‘The Nationalists are lurching to the Left and the hardworking people of Scotland will pay the price.’
Yesterday’s motion – put forward by Labour – called for a rise in income tax to help pay for public services and hold off further cuts to the NHS.
It did not include details on what the party would seek in meetings with Mr Mackay, but shows three parties are in support of some form of change. A Labour source said: ‘If they want to find consensus, they’ve got the three progressive parties on one side and the Tories on the other. They need to decide which to support.’
Reacting to the vote, Scottish Labour interim leader Alex Rowley said: ‘If we are to protect public services we need to be willing to increase taxation – when push came to shove, SNP politicians sat on their hands.’
Scottish Lib Dem leader Willie Rennie said the Government’s willingness to hold cross-party talks indicated it could be prepared to move away from its 2016 manifesto commitment to freeze the basic rate for the duration of the current parliament.
The Greens want to see tax rates decreased for low earners and increased for high earners.
Co-convener Patrick Harvie said: ‘We see increased inequality, we see increased pressure on public services and we see the need urgently to end the public sector pay cap. I recognise that must not just be done but must be paid for.’
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