SNP to strike deal with the Greens as tax take plunges

SNP ministers are preparing to strike another Budget deal with the Greens – as it is revealed they expect income tax receipts to slump despite forcing hundreds of thousands of Scots to pay more than if they lived south of the Border.

Patrick Harvie, leader of the Greens at Holyrood, has watered down a key ‘red line’ in his negotiations with the SNP in a move which could mean his party helps get the Scottish Government’s financial plans through parliament for a second year in a row.

He had been demanding that council tax is scrapped and replaced with a new levy which could see the bills of some families triple. But he has now said he would be willing to accept the SNP committing to the council tax overhaul even if it doesn’t happen until after the next Holyrood elections.

Instead, he has listed a series of new demands, including a ‘tourist tax’ and more cash for

‘Punishes hard workers’

councils, green projects and welfare.

The looming deal provides a lifeline for Finance Secretary Derek Mackay, who was facing a battle getting backing from a majority of MSPs for his Budget, which will dramatically widen the tax divide between Scotland and England.

It was also revealed yesterday that, despite refusing to give a tax break to 367,000 higher and top rate taxpayers that will be enjoyed by those in the rest of the UK, the Scottish Government expects income tax revenue to slump next year, from £11.7million to £12.2million.

Mr Harvie said he accepts that scrapping council tax ‘probably can’t be done during the term of this parliament’ but wants to see ‘solid implementation steps’ on the way forward, along with legislation which could be introduced after the 2021 Holyrood elections.

Speaking on the BBC’s Sunday Politics Scotland programme, he added: ‘Shorter term options include things like (council umbrella group) Cosla has been arguing for a transient visitor levy, there are other ways you can broaden the local tax base.

‘The objective has to be to end the situation where the councils that provide critically important services are so utterly dependent on a single block grant, and the annual Scottish budget just becomes a haggling exercise about how many cuts to pass on to these councils.’

Scottish Tory finance spokesman Murdo Fraser said: ‘We know Derek Mackay’s Budget will only pass with the support of the Greens. They will want to hammer taxpayers even more.

‘The Scottish Conservatives will not support a Budget which slashes public services and punishes hard workers.’

Mr Mackay said: ‘I’ve had constructive talks with the Greens. They’re actually being a constructive opposition party doing their job, unlike other opposition parties.’

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