Tax bills to soar when SNP sets own rates

ScotS will see their tax bills soar from next year. Finance Secretary Derek Mackay yesterday confirmed he intends to use new powers on income tax when he announces his Budget in December.

He will shortly publish a ‘discussion paper’ on SNP tax plans that will propose higher taxes in return for greater spending to tackle inequality and improve growth.

It is expected to propose that those who can afford it should pay more, which is likely to hit middleincome families hard in the pocket.

the move will widen the tax rates gap between Scotland and the rest of the UK, raising fears it could damage the economy.

At a conference on inclusive growth yesterday, Nicola Sturgeon also suggested a move to increase taxes by citing an International Monetary Fund report which she said indicated ‘more progressive taxation could help us to tackle inequality’.

the First Minister vowed to research a ‘citizen’s basic income’ for every Scot despite admitting: ‘It might turn out not to be feasible.’

one of her economic advisers, Professor Anton Muscatelli, described concerns from the business community that tax rises would damage the economy as ‘spurious’ and said ‘intelligent’ governments should raise taxes and say how the money will be used to boost growth.

Mr Mackay said his spending plans ‘must work in tandem with spending priorities’. He added: ‘We will have greater flexibility on income tax powers and will shortly launch a discussion paper on income tax.

‘We have reformed council tax so higher value houses pay more. that makes local taxation fairer and we are looking at income.’

the SNP has pledged to consider rises across the 20p tax rate on annual earnings over £11,500, and the 40p rate of tax on salaries above £43,000. It will also consider a 50p top rate on income above £150,000.

Earlier this week, Scottish Government officials warned Miss Sturgeon a citizen’s income could cost £12.3billion a year and force all workers to pay a 50 per cent tax rate.

Scottish conservative social security spokesman Adam tomkins said: ‘Nicola Sturgeon has already been told the idea of a citizen’s income is a non-starter… It shows the lengths to which she will go to appease the extreme Left of the pro-independence movement.’

‘The idea is a non-starter’