Holyrood to approve Scots income tax

MSPs are expected to back plans to create a new income tax system for Scotland in a key vote at Holyrood.

Finance Secretary Derek Mackay hailed the occasion as a “important day for Scotland’s future”, with SNP ministers insisting seven out of 10 of taxpayers north of the border will be better off next year under the plans.

Both the higher and top rate of income tax will be increased by 1p from April 1 2018, rising to 41p and 46p respectively.

In addition the Scottish Government will levy a new intermediate rate of 21p on income between £24,000 and £43,430.

But the increase in the personal allowance – the amount people can earn before they start paying income tax – together with the introduction of a 19p “starter rate” on earnings between £11,850 and £13,850 means most Scots will pay less in 2018-19 than in 2017-18.

Mr Mackay said: “Our progressive approach to reforming income tax will deliver greater tax fairness and protect the lowest earning taxpayers in Scotland.

Mr Mackay spoke out ahead of a debate in Holyrood on income tax reforms.

Scottish Green co-convener Patrick Harvie said: “Green MSPs will support tonight’s income tax rate resolution because it is a significant step towards making Scotland fairer and will help turn a funding cut into a real-terms increase for local services.”

Conservative economy spokesman Dean Lockhart said: “The SNP are about to break a central manifesto promise and raise income taxes.”

Finance Secretary Derek Mackay.