Tory tax warning
Struggling workers ‘must be spared cash hike in Budget’
STRUGGLING workers must be spared more income tax increases in this week’s Budget, the Tories have warned.
Finance Secretary Kate Forbes will unveil her Budget on Thursday and yesterday pledged to help the economy ‘recover and renew’ from the economic wreckage of the Covid pandemic.
Thousands of Scots are struggling after being made unemployed, furloughed or having seen their business pushed to the brink.
Anyone earning more than £27,000 already pays more income tax in Scotland than their peers south of the Border.
Scottish Conservative leader Douglas Ross warned that Scots cannot cope with another tax hike – and that consumer spending power will be needed to revitalise the economy when Covid restrictions finally ease.
He said: ‘The SNP are still sitting on hundreds of millions of pounds in unallocated funding or unpaid business support.
‘There must be a very big mattress somewhere in St Andrew’s House. Where is the money?’
He also calls for 100 per cent business rates relief for retail, hospitality and leisure businesses, warning that failure to do so would leave town centres resembling a ‘spaghetti western’.
Ms Forbes, inset, will also be under pressure to raise funding for councils. And she has also promised a ‘fair and affordable’ pay rise for the public sector, despite it being ruled out south of the Border.
Ms Forbes said: ‘The Budget on
Thursday will create the conditions for Scotland to recover and renew.
‘The pandemic continues to put pressure on our economy, health services and each of us as individuals. But the vaccine is providing a route back to normality and we must now sharpen our focus on rebuilding for the future.’ Despite the need for more public cash, Ms Forbes signalled she will not impose widespread tax rises.
She added: ‘We sought views on the role of Scotland’s devolved taxes and our fiscal framework in supporting the recovery. There was clear feedback regarding the need for stability and targeted support. The Budget will deliver on those priorities.’
The UK Government has guaranteed an extra £8.6 billion for the Scottish Government to tackle the pandemic and supported 930,000 jobs north of the Border. But there have been concerns about the speed at which this money has found its way to businesses.
Tracy Black, director of CBI Scotland, said: ‘Unlocking the private sector is pivotal to kick-starting recovery and limiting the lasting economic damage done by Covid.’
An estimated 60,000 Scottish jobs have been lost in the hospitality sector, with thousands more at risk, and retail has also been badly hit.
Willie Macleod, executive director for Scotland of UK Hospitality, said: ‘Unless these businesses receive adequate, ongoing financial support from government they cannot survive indefinitely.’
David Lonsdale, Scottish Retail Consortium director, said: ‘Processing grants swiftly means retailers can access the cash they need to weather the current crisis.’
Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: ‘We cannot emphasise enough the importance of increasing the pace of distributing business support grants.’