UK Chancellor’s budget is good news
The UK chancellor’s budget announced last week contained a raft of good news for local residents.
Fuel duty is being frozen, again, meaning there will be no rise in the tax when we fill up our cars.
The level of duty on spirits has been frozen, which is good news both for local whisky and gin producers, but also for consumers.
The Tay Cities Deal was confirmed at £350 million, a collaboration between the Westminster and Scottish governments.
We will find out this week exactly which projects are being supported, but this initiative will have a transformative effect on the local economy in Perth and Kinross.
Perhaps most significant of all, there was additional spending for the Scottish Government announced of nearly £1 billion, mainly as a result of to increases in health spending in England.
How this money is spent ultimately will be up to the Scottish Government to determine in their own budget, due in December.
However, the Scottish Conservatives have argued the bulk of it must go to supporting the NHS.
We are well aware of concerns locally about the future of health services at PRI and elsewhere.
If this SNP Government invests this money wisely, then it should go to supporting and protecting local services.
The Chancellor Philip Hammond also recognised concerns over the future of traditional high street retailers, with a substantial package of business rates reform.
As the Conservatives’ finance spokesperson at Holyrood, I have already called on the SNP Government to take similar action to support our high streets, in the face of increased competition from week online sales.
The other aspect of the chancellor’s budget which attracted attention was the increase in the personal allowance and rate threshold, for income tax.
The personal allowance for everyone will rise to £12,500 from April next year, meaning a saving for all tax payers, and some of those earning the least will as a result end up paying no income tax at all.
However, these increases won’t automatically apply in Scotland, as income tax is devolved.
Already a tax differential has opened up in income tax between Scotland and the rest of the UK, with many middle earners paying more here.
There is a real danger this problem will be exacerbated if the SNP decide not to follow Philip Hammond’s lead.
Already many businesses are concerned at their ability to attract talented staff to work in Scotland, given higher rates of tax here.
And these problems extend to the public services, where highly qualified staff in the NHS may well be deterred from coming to work in Scotland due to an additional tax liability.
Altogether, the chancellor’s budget demonstrated that prudent management of the public finances can lead to modest tax reductions coupled with increases in spending on vital public services.
With all the extra money now coming to the SNP Government, it is up to them to demonstrate similar good management, and make sure the additional cash they are receiving is not squandered.
Murdo Fraser always welcomes feedback from constituents. He can be contacted at The Control Tower, Perth Airport, Scone, PH2 6PL, by email on murdo. fraser.msp@parliament.scot or by telephone on 01738 553676. Philip Hammond announced his budget last