Swinney defends Budget 'smallest tax cut in history' as SNP under fire for 'ruinous' benefits bill
Russell Findlay tells First Minister 61p a week saving ‘won’t even buy you a bag of peanuts’
John Swinney had defended his government’s spending plans after being accused of tabling a Budget that “hammers people with higher taxes to fund a bloated benefits system”.
The First Minister has come under pressure from opponents after the Scottish Government’s draft Budget, published on Tuesday, signalled income tax rises for middle and high earners after freezing thresholds.
Analysis shows that the number of Scots paying higher income tax rates has increased by more than 500,000 in the last decade and is set to reach almost 950,000 in the next two years.
The thresholds for Scotland’s lowest earners are to be hiked by 7.4 per cent in the next financial year, meaning 55 per cent of Scots will pay less tax, albeit, a minimal amount.
At First Minster’s Questions, Scottish Conservative leader Russell Findlay, highlighted the tax cut for low earners “works out at 61 pence a week”, adding it “wouldn’t even buy you a bag of peanuts”.
He added: “John Swinney’s Budget might even have broken a world record. A Scottish Government tax adviser said that ‘it may be the smallest tax cut in history’.”
Mr Findlay argued that SNP ministers have brought forward a proposed Budget that “does nothing to back workers and businesses”, adding that “it hammers people with higher taxes to fund a bloated benefits system”.
In response, Mr Swinney argued the SNP’s spending plans were a demonstration of “a government that is on the side of the people of Scotland”.
“I’m proud of the measures that we’ve set out in the Budget”, he added.
The Scottish Tory leader confirmed his party will not vote for “a desperate budget that kills aspiration” and “a dishonest budget that will need to be fixed within months”.
Scottish Labour leader, Anas Sarwar, warned the Budget “lacks ambition for Scotland”.
He added: “While he brags about his £6 a year tax cut for the lowest paid, one million Scots including nurses, teachers and police officers face being forced to pay more.
“Even his own tax adviser says this is a political stunt. So why does John Swinney believe that someone earning £33,500 has the broadest shoulders and therefore should pay more tax in Scotland?”
Mr Swinney, however, said that many public sector workers would be better off in Scotland, despite only referring to those on the lowest incomes.
In response, he said: “A band six nurse at the bottom of the scale will take home an additional £1,994 after tax compared to the same band in England.
“A qualified teacher at the bottom of the band will take home £6,365 more after tax in Scotland than the equivalent in England. There are the facts for Mr Sarwar.”
Mr Findlay claimed the tax rises were being brought forward in order for the SNP government to “spend even more on benefits”, adding that the “reckless approach is unfair and unsustainable”.
He added: “The SNP’s benefits bill is out of control. It’s now going to go up by another £650m. Scotland can’t afford this. John Swinney’s economic approach is ruinous.”
Mr Findlay claimed the tax rises were being brought forward in order for the SNP government to “spend even more on benefits”, adding that the “reckless approach is unfair and unsustainable”.
He added: “The SNP’s benefits bill is out of control. It’s now going to go up by another £650m. Scotland can’t afford this. John Swinney’s economic approach is ruinous.”
In response, the First Minister claimed that “updated Scottish Fiscal Commission forecasts show a substantial reduction in the Scottish Government’s benefits investment over and above the block grants adjustment received from the United Kingdom government”.
He added: “That shows the action the Scottish Government is taking is sustainable.
“This Budget delivers on the priorities of the people of Scotland - about strengthening our National Health Service, about supporting people and businesses with the cost of living.”
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