Taxing times ahead for SNP Government

Overshadowed as it was by the business rates announcement, Holyrood’s momentous first vote on income tax rates finally passed with no more than low-level grumbling and little fanfare.

But it will be a regular battleground on the political landscape from now on.

As soon as changing the income tax level fell within his gift, Finance Secretary Derek Mackay was faced with a high wire act which will become increasingly difficult to negotiate unscathed.

The Scottish Conservatives, the traditional party of low taxation, will always argue for the position of their Westminster colleagues.

The other parties have a stick with which to beat the Government, currently safe in the knowledge their calls for higher taxation are popular with their bases but unlikely to be put to the test any time soon.

By striking the deal he has, Mr Mackay has come out undamaged — this time.

The relatively modest difference between England and Scotland is unlikely to see an exodus of higher rate payers seeking to claw back a few pounds.

But they will be watching carefully for any hint that this is the thin end of the taxation wedge.

If the SNP wants to retain its dominant position in Scotland, it will have to think very carefully before engaging in more radical tax tinkering in the years to come.