No ‘brain drain’ test till damage is done

THE economic damage caused by the SNP’s punitive tax regime will not be revealed until after the measures are already in force, it emerged yesterday.

It is feared Finance Secretary Derek Mackay’s decision to widen the tax gap with the rest of the UK will spark a ‘brain drain’ out of the country.

But yesterday it emerged that work to assess the impact of the controversial measures will be carried out only after they come into effect in April.

The Scottish Government’s Council of Economic Advisers (CEA) has been commissioned to carry out detailed research about ‘brain drain’, ahead of next year’s budget.

Mr Mackay confirmed he has asked the CEA to assess if the tax plans will make Scotland less attractive to people relocating from other parts of the UK, Europe or the rest of the world.

He said: ‘What I have asked the Council of Economic Advisers to do is to look at our tax policies to be sure there isn’t a brain drain and diminishment of the prospect of Scotland as an attractive place to live and work.’

The Scottish Government confirmed the CEA will begin discussing the work at its next meeting. Nationalist ministers have repeatedly been criticised for failing to assess the economic impact of their tax proposals.

The Scottish Fiscal Commission, which provides economic forecasts to ministers, has already warned that Mr Mackay’s proposals will start to impact on ‘tax residency decisions’.

Murdo Fraser, finance spokesman for the Scottish Conservatives, said: ‘It beggars belief that, having raised taxes, the SNP is only now going to research the impact on behavioural change.

‘This is the definition of locking the door after the horse has bolted. By the time the research is concluded, highly skilled people could have left Scotland, taking their expertise with them.’

A Scottish Government spokesman said: ‘The Council have been asked to report in time for their findings to be included in the Cabinet Secretaries’ considerations of the 2020-21 Budget.’