Citizen income’s £20bn bill ‘would see taxes soar’

PROPOSALS to introduce a state-funded ‘citizen’s income’ for everyone living in Scotland would cost £20billion a year, force up taxes and not even cut child poverty, a think-tank has warned.

Nicola Sturgeon was yesterday urged to abandon a series of ‘citizen’s basic income’ pilot schemes after the Left-wing Institute for Public Policy Research (IPPR) condemned the proposals in a report.

The Scottish Government recently announced it was investing £250,000 in four councils’ pilot schemes.

But the IPPR said it could cost £20billion a year and require huge tax rises to pay for it.

The introduction of a citizen’s basic income would mean every Scot would be handed a ‘wage’ from the state and could then decide how much they want to work to top up the basic income.

The IPPR makes its analysis based on a £100 per week payment to all adults and £50 per week to children.

It estimates it would take only 35,000 children out of poverty, whereas more targeted support

‘Eye-watering amount of money’

could help lift 100,000 children out of poverty at a fraction of the cost.

Russell Gunson, director of IPPR Scotland, said: ‘The idea of a Universal Basic Income has gained attention with supporters across the political spectrum. It’s good to research the idea and test its feasibility.

‘However, a UBI could cost an eye-watering amount of money, around £20billion per year in Scotland at these rates. Even only a small proportion of that could be used to make huge inroads into poverty rates.’

Scottish Tory social security spokesman Michelle Ballantyne said: ‘Nicola Sturgeon’s own advisers have made clear to her how flawed this approach is. She must abandon this scheme and start thinking properly about a welfare system that is fair and works for everyone.’

A Scottish Government spokesman said: ‘Citizen’s Basic Income is a bold idea and we are committed to support the local authorities looking to test it.

‘The IPPR study provides analysis for one possible model of Citizen’s Basic Income and this will be helpful in determining suitable approaches.’