COMMENT

Hard-pressed working people in Scotland will struggle to cope with the impact of tax rises on top of mounting pressures on their pay packets, business leaders have warned.

Rising prices, stunted wages, mortgage hikes and increasing council tax levels has prompted the Scottish Retail Consortium to urge caution ahead of next month’s Scottish budget.

New research published today shows the average worker in Scotland has seen their wages drop by almost £14 a week to £561.

First Minister Nicola Sturgeon gave the clearest hint yet that she will use the Scottish Parliament’s powers to increase income tax next year. Unveiling an “options” paper last week, it now seems likely that those earning £31,000 will pay more, although a more radical option could see those earning £24,000 hit by a tax hike.

But as inflation soars and interest rates last week saw their first rise in a decade, the pressure on family budgets is mounting. Employee pension contributions will also go up in April from 1 per cent to 3 per

“MSPS ought to be wary about heaping further pressure onto household finances with income tax rises”

DAVID LONSDALE