Holyrood to deliver landmark vote on income tax

The SNP has faced demands to think again on tax ahead of a landmark vote in Holyrood.

MSPs will decide this afternoon whether to approve the Scottish Government’s plans on income tax for the first time since the Scottish Parliament took control of the levy.

The bands and rates would remain broadly in line with UK levels under the proposals, but Nicola Sturgeon wants to freeze the 40p rate threshold rather than give higher earners a tax break.

Scottish Conservative Dean Lockhart said making Scots pay more than their English counterparts will hurt the economy.

“Higher taxes in Scotland means lower growth, which will deliver less cash for government to spend on our vital public services,” he added.

Alex Rowley, the deputy leader of Scottish Labour, which wants to raise income tax, said the SNP is “refusing to use the new powers of the Scottish Parliament to invest in our valued public services”.

Finance Secretary Derek Mackay said: “I think we’ve got that balance just right.”

The Scottish Greens, who have proposed tax increases, say they will give the SNP the Holyrood majority they need on income tax to protect the extra £160 million they secured from Mr Mackay for councils.