NOW SNP MUST AXE TAX GRAB

SNP ministers have been urged to abandon their plan to make Scotland the highest taxed part of the UK – after the Chancellor yesterday handed them a £350 million-cash windfall.

Philip Hammond confirmed he will give a £500 tax cut to middle-class workers because of changes to the threshold for paying the higher rate.

But his move won’t be followed by the SNP Government – meaning workers in Scotland will pay more tax than those in the rest of the UK for the first time.

Mr Hammond also revealed the Scottish Government will receive an extra £350million of funding as a result of spending commitments announced yesterday for other parts of the UK.

Finance Secretary Derek Mackay was told to use the extra cash to allow middle-class Scots the same tax break being awarded to people south of the Border.

There was also bad news for the self-

employed, as Mr Hammond announced they will face a National Insurance hike which will cost them £240 a year. In other key Budget developments:

Mr Hammond’s economic forecaster predicted the UK economy will grow by 2 per cent this year – although Scotland is expected to lag behind;

More than a million middle-class savers with shareholdings will lose £320 a year as a result of a raid on payouts, while another 1.4 million freelance workers will have to pay more tax;

Motorists will face an increase in their car insurance premiums which will add 10 per cent to annual bills;

The Chancellor confirmed he will press ahead with a sugar tax on soft drinks – although it will raise less than first predicted;

Scotland’s whisky industry will face soaring excise duty – putting up the price of a bottle of Scotch;

It was hinted that drivers of diesel cars could face tax hikes later this year;

VAT will be slapped on mobile phone

‘Give taxpayers and businesses a break’

calls made by tourists and business travellers outside the EU.

Mr Hammond said: ‘Our United Kingdom has a proud history. We have done remarkable things together, but we look forwards, not backwards, confident our greatest achievements lie ahead of us.

‘Today, we reaffirm our commitment to invest in Britain’s future. We embark on this next chapter of our history, clear in our determination to build a stronger, fairer, better Britain.’

From next month, he will raise the threshold for paying the higher rate of income tax from £43,000 to £45,000 in other parts of the UK, saving workers £500 a year. But the SNP will not allow the 374,000 higher rate taxpayers in Scotland to enjoy the same tax cut and will instead freeze the threshold at £43,000. They will only benefit from the Chancellor’s changes to the personal allowance, saving them only £100.

Higher rate taxpayers will pay £400 a year more in Scotland than in England.

The changes to the rules for the selfemployed will impact on 2.5million in the UK, including about 310,000 in Scotland.

Scottish Tory leader Ruth Davidson said: ‘Despite the Chancellor’s cautious approach on spending, his Budget this afternoon means the Scottish Government has £350million extra to spend over the coming years. That includes £100million to spend in the next financial year.

‘I hope that the SNP will use this extra resource to support councils which require it, and give taxpayers and businesses a break. We simply do not need to send out the message that higher taxes are necessary in Scotland. I urge the SNP to think again.’

SNP Treasury spokesman Stewart Hosie described the extra funding for Scotland as ‘smoke and mirrors’. He said: ‘Every little helps but I don’t think we will be putting out the bunting to celebrate the Chancellor’s largesse.’

Mr Mackay said: ‘The Chancellor has today confirmed a real terms cut to the Scottish budget of 9.2 per cent between 2010-11 and 2019-20.

‘While I welcome the additional Barnett consequentials, no one should think this Budget provides an end to austerity from the UK Government – in fact, there is still a further £3.5billion of cuts to come.’

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