Almost half of business bosses support tax rise

Almost half of Scottish business leaders would support a 1p increase in the basic rate of tax, according to a new survey.

The poll was carried out by accountancy and business services practice RSM following the announcement of the Scottish Government’s plans to publish a tax paper ahead of the Scottish budget in December.

Some 42 per cent said they would support the basic rate of tax but only 10 per cent would back the addition of a new 30p rate band mooted for middle earners.

Stephen Hay, RSM’S head of tax in Scotland, said: “At a time when the Scottish Government is considering a new tax rate for middle earners, it’s interesting to see that a large percentage of business leaders would support a small increase on the basic rate instead.”

Hay said a 1p basic rate increase would bring in £500 million, but a 30 per cent rate band would raise around £450m.