Budget to rule out tax cuts for the rich
FINANCE Secretary Derek Mackay is expected to rule out tax cuts for the richest when he unveils his budget at Holyrood today.
Mackay has to address a widening tax gap with high earners across the UK, caused by Tory Government changes at Westminster.
The 40 per cent higher rate tax band will increase from £46,350 to £50,000 in April under plans by UK Chancellor Philip Hammond.
In Scotland, the higher personal rate is 41p and kicks in at £43,431, meaning middle class earners such as doctors already pay more than those in England.
Mackay has said he “senses” scope to increase taxes. Last night, he added:
“Despite the UK Government’s promises, this budget will be set against a backdrop of continuing UK austerity, which has devastating impacts on the most vulnerable in our communities.”
The SNP Government also promised to invest in health and education while offsetting “UK austerity”.
But Mackay needs support of another party to get a majority for his spending plans for next year.
Greens leader Patrick Harvie said: “We have been clear for months now about our priorities for protecting local services.
“Derek Mackay is leaving it dangerously late to give an indication of how he’ll respond to our proposals.”