Dugdale asks Hammond to spare 999 services from VAT

SCOTTISH Labour has taken its demand for Scotland’s police and fire services to be exempt from VAT directly to Chancellor Philip Hammond.

Yesterday, leader Kezia Dugdale confirmed she will back the Scottish Government’s demand for the VAT burden to be lifted from the blue-light services.

While she insists the SNP was “fully aware” that the services would become liable for VAT when they were removed from local authority control, she said they should not have to bear the £35 million a year burden.

Ms Dugdale has written to Mr Hammond with a list of other requests for his Budget on Wednesday, including support for North Sea industries and an end to austerity.

She said: “The Chancellor must break from austerity and adopt a fiscal strategy which invests in public services and guards against falling incomes and living standards in the UK and Scotland.

“With austerity having failed and Brexit a profound threat to the Scottish and UK economies, a change of course is not just necessary, it is vital. Policies that disproportionately affect women and lead to increases in child poverty are fundamentally unacceptable.

“Both the Chancellor and the Prime Minister have claimed to be on the side of working people across the United Kingdom – now is their chance to prove it.”

Ms Dugdale added: “Further action should also be taken to support the North Sea oil and gas industry, which continues to struggle amid the ongoing downturn in oil prices.

“And the anomaly by which the police and fire services in Scotland are required to pay VAT must be addressed in the upcoming Budget and the Finance Bill that follows.

“While the SNP Government was fully aware of this consequence prior to centralising the services and chose to proceed regardless, I remain disappointed the Tories have so far failed to respond positively to Labour’s calls for the exemption to be applied.”