Scotland’s tax hike
The Scottish Government has used its new powers to set income tax rates for the first time. In its draft budget for 2018-19, the SNP put a penny on the higher and additional rates, increasing them to 41p and 46p; it also introduced a new 21% intermediate tax band for earnings between £24,001 and £44,273; and a “Scottish starter rate” of 19% on the first £2,000 of taxed income. According to Finance Secretary Derek Mackay, anyone earning less than £33,000 will be better off. However, the changes mean that 45% of Scots will pay more tax than if they lived elsewhere in the UK.