Prospect of income tax rise in ‘bold and ambitious’ plans

Nicola Sturgeon raised the spectre of income tax hikes as she laid out her government’s “bold and ambitious” plans for the year.

The First Minister told MSPs she would scrap the 1% public-sector pay cap, increase the criminal age of responsibility and all but end short prison sentences.

In a major speech outlining her programme for government over the next year, she stole a march on the Tories by promising to phase out new petrol and diesel vehicles by 2032 – eight years earlier than planned by UK ministers.

A law, dubbed the Turing Bill, will give those convicted of homosexual offences an automatic pardon.

Ms Sturgeon is looking to reenergise her administration after a disappointing general election result in June. She outlined 16 new Bills to Holyrood yesterday afternoon, including legislation to revolutionise the way schools are run.

But Ruth Davidson claimed that Ms Sturgeon was not only bereft of new ideas, but is “opening the door on greater tax rises”.

Ewan MacDonald-Russell, Scottish Retail Consortium head of policy, said any rise in income tax “would be a challenge when consumers are already facing squeezed incomes”.

Ms Sturgeon said she would “exercise the utmost responsibility in setting tax rates”, but needed to “build alliances” with other parties as a minority government.

The SNP leader has ruled out joining forces with the Tories, who oppose tax rises, leaving her with the option of working with Labour, the Greens and the Lib Dems, who all call for her to use Holyrood’s new powers and increase income tax.

Promising to publish an analysis of tax options, she said: “We know that continued Westminster austerity, the consequences of Brexit and the impact of demographic changes will put increasing pressure on our public services and on our ability to provide the infrastructure and support that our businesses need to thrive.

“So the time is right, in my view, to open a discussion about how responsible and progressive use of our tax powers could help build the kind of country we want to be.”

Ms Davidson told the FM: “We say stop taking ever more money from the pockets of Scotland’s workers – we must instead go for growth.”

Alex Rowley, the acting Scottish Labour leader, called for Ms Sturgeon to increase income tax to “pay for a fairer, more equal society”.

He said ploughing on with “poor” education reforms, which involve transferring power from councils to headteachers, is “pure dogmatic politics”.

Patrick Harvie, for the Scottish Greens, said the legislative programme “clearly shows the value of Green influence in parliament”, through plans for basic income guarantees and carbon emission reductions.

Scottish Lib Dem leader Willie Rennie said: “The SNP has a lack of ideas. The fire has gone and they are stuck in an ivory tower.”

The time is right to open a discussion about how responsible and progressive use of our tax powers could help build the kind of country we want to be. NICOLA STURGEON