John Swinney rules out income tax hike in upcoming Scottish Budget
The First Minister restated a commitment not to increase income tax
John Swinney has restated his commitment not to increase income tax in the upcoming Scottish Budget after a poll found nearly half of voters think tax is too high.
The First Minister said there would no changes to income tax when the Scottish Government publishes its spending plans in January.
It comes amid speculation Chancellor Rachel Reeves could be preparing to hike income tax south of the Border, breaking a key Labour manifesto pledge.
Anyone earning more than £30,318 already pays more income tax in Scotland than if they lived south of the Border. Someone earning £50,000 pays £1,527 more, and a person earning £100,000 pays £3,331 more.
The Chancellor will deliver her Autumn Statement on November 26, almost a month later than last year, with the Scottish Government setting out its own plans in the new year.
"We've said that there won't be any changes to income tax in the remainder of this Parliament," Mr Swinney told a conference organised by the think-tank IPPR Scotland. "The Finance Secretary made that commitment at the Budget last December, so I'm very happy to reinforce that point today."
Mr Swinney said he acknowledged polling by Survation for IPPR Scotland, which found nearly half of voters (47 per cent) think taxes are already too high. Survation polled 2,043 adults between September 22 and October 14.
But the First Minister added: "I think what also I have to acknowledge is the fact that if we didn't have the additional revenue generated by the tax changes that we have made, we would not be able to support the investments in public policy that we have made."
Mr Swinney did not rule out changes in other areas such as Land and Buildings Transaction Tax. “We’ve got a Budget to set, we’ve got tax decisions to make, so we will look at all of these questions as part of that Budget-setting process,” he said.
Scottish Labour leader Anas Sarwar said the tax burden in Scotland was too high.
Speaking to journalists at the IPPR Scotland conference, he said: “I have no intention and we have no plans to increase income tax in Scotland. I want to actually see the tax burden come down in Scotland.”
He said a Scottish Labour government would make a “firm commitment” not to increase income tax if the party wins the Holyrood election next year.
The polling commissioned by IPPR Scotland found 44 per cent of voters do not trust the government to spend additional tax wisely.
One third feel negatively about Scotland’s future, with 32 per cent anticipating less economic equality over the course of the next Scottish Parliament, compared to 14 per cent who think Scotland will become more equal.
Voters overwhelmingly prioritise the NHS, with 86 per cent saying its improvement is important to Scotland’s future. While cost of living dominates voters’ concerns, only 54 per cent see tackling climate change as important to Scotland’s future.
Stephen Boyd, the director of IPPR Scotland, said: “The polling results are not entirely bleak. More voters are positive than negative about Scotland’s future.
“SNP, Labour and the Green voters are more optimistic than supporters of other parties. The findings suggest that campaigns which offer a hopeful, credible vision for the future could resonate strongly with the electorate.”
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