Now Sturgeon must rise to the challenge

Kwasi Kwarteng’s £45billion tax cut is the most radical measure introduced by a chancellor since Geoffrey Howe’s 1981 Budget. whether it, too, will defy critics, and turn the tide in both the economy and the Government’s political fortunes, remains to be seen.

Kwarteng has slain dogmas dear to the Treasury and smashed a consensus that reigned from Blair to Boris. For better or worse, Britain is in a brave new world.

But there are no signs of bravery from the scottish Government, no signs of anything that isn’t the suffocating dead hand of taxand-spend statism.

Nicola sturgeon’s initial reaction yesterday was to tweet that the ‘super wealthy’ would be ‘laughing all the way to the actual bank’. The pettiness of her jibe was matched only by the shallowness of her analysis.

Devolution means Kwarteng cannot extend his income tax and stamp duty cuts to scotland, since these powers are held by sNP ministers.

so far they have used them to keep income tax rates higher than in England. This has failed to generate additional revenue, not least because the block grant is adjusted to account for ministers taking different decisions from westminster.

Middle-class taxpayers already have to fork out more than they would if they lived in England. But that tax gap is set to tear wide open if the sNP Government refuses to pass on the Chancellor’s revenue relief.

in effect, higher earners will be paying a scottish residency tax, a levy on living here and having the audacity to work hard and earn accordingly.