Tories go on offensive over possible tax hikes

parliament: Sturgeon says she is protecting services

Nicola Sturgeon and her Green allies in Holyrood are eyeing up more council tax hikes, the Tories have warned.

Workers on middle to higher salaries will be squeezed by income and local tax rises from the SNP’s budget, which Holyrood backed this week following support from Patrick Harvie’s party.

Ruth Davidson, the Tory leader in Scotland, said the Scottish Greens are already lobbying their proindependence partners for another raid on people’s pay packets next year.

Speaking at First Minister’s Questions, she said: “The Greens passed her budget last year, they are passing her budget this year and they have already told her which tax they want her to put up to pass her budget next year.

“(On Wednesday), Patrick Harvie told the chamber that he wanted “meaningful progress” on local tax reform.

“Translated, that means that next year he is coming for the council tax. Surely, even for the First Minister, that would be a tax rise too far.”

Ms Sturgeon refused to rule out increasing council tax in 2019-20, instead pointing out it is lower in Scotland than other parts of the UK.

She said while the SNP wants to protect public services, invest in infrastructure and protect the most vulnerable “all that Ruth Davidson is interested in is tax cuts for the very richest in our society”.

Mr Harvie said: “Council tax is outdated and unfair and the restrictions government places on councils’ ability to raise revenue is doubly unfair.”

Scots earning less than £33,000 will see their income tax bill fall, with those on more than that bearing the burden of increasing revenue for the government by about £215m.

Defending the move, Ms Sturgeon said 70% of Scots would pay less in 2018-19, adding her government had put forward a “sensible, responsible, balanced budget”.

Richard Leonard, the Scottish Labour leader, challenged Ms Sturgeon over her refusal to reimpose the 50p top rate of income tax.

“New analysis published by Labour today reveals a 24% rise in the estimated number of people in Scotland who could be paying a top rate of 50p but they are not,” he said.

“But Nicola Sturgeon won’t use the powers of this parliament to reverse this Tory Tax cut.”

Local authorities such as Fife and Dundee still face making an estimated £18m and £12m of cuts respectively.

Pictures: Getty. Nicola Sturgeon, left, and Ruth Davidson clashed over taxes in the Scottish Parliament yesterday.