2 weeks Ago By The Telegraph
Holyrood has become an “echo chamber for preening student politics” where hiking taxes on Scots is seen as an “act of virtue,” will claim on Monday. Russell Findlay will say MSPs’ attitude to taxation is at the root of the devolved Parliament’s problems and insist that “continually is not righteous or progressive”. The Telegraph understands that Mr Findlay will propose that the 21p “intermediate” income tax band, one of six north of the border, should be scrapped, in a move that would benefit up to 1.
5 million Scottish taxpayers. “It’s time to end the student politics of gimmicks and cheap headlines that come with costly price tags,” Mr Findlay is expected to say, in his first major speech as leader in Scotland. “Holyrood has not lived up to its potential.
It has become an echo chamber for posturing and preening student politics. “At the root of the problem is the attitude that is somehow an act of virtue. This needs to change.
“Continually squeezing more cash out of people is not righteous or progressive. We need fairness and justice for Scotland’s taxpayers.” Currently, there are six income tax bands north of the border, double the number in the rest of the UK.
A Scottish taxpayer on £50,000 pays £1,542 more per year than they would if they lived elsewhere in the UK, rising to £3,346 for a worker on £100,000. Other devolved taxes are also steeper. Land and Buildings Transactions Tax is payable on home purchases of above £145,000, while , kicks in at £250,000.
The top rate of 12 per cent in England applies to house purchases over £1.5 million, double the £750,000 threshold in Scotland. Senior Scottish Tory insiders said that removing the 21p income tax band would save the average full-time worker in Scotland almost £100 per year, and a single income family on £44,000 around £170.
The suggestion, which would cost around £170 million, potentially opens the door to an unlikely budget deal between the SNP and the Tories. The Scottish Greens are seen as the most likely party to back an SNP budget, but the Left-wing party have made a series of costly demands which ministers may struggle to afford. , which some SNP figures fear could prove unpopular with voters and harm the economy.
A Tory source said: “Russell will propose the Government should look into removing the 21p band to reduce the amount that Scottish workers pay compared to similar taxpayers in the rest of the UK, remove some of the confusing elements of the Scottish tax system, and ease the burden on families.” Mr Findlay is expected to say: “The trust between the public and politicians has broken down because people pay more in tax every year for services that only get worse. “People only ever hear Holyrood talk of how much more they should pay – never how much less they could pay if government was more efficient.
“People bust a gut to make a better life for their families, only to be told by politicians earning more than twice the average wage they need to cough up even more.” In a bid to fend off attacks from the SNP and Labour, Mr Findlay will deny he wants to cut public services, but instead say he wants to cut the costs of delivering them. His speech comes amid reports that Rachel Reeves, the Chancellor, on Oct 30, meaning more people would be brought into higher bands as wages increased.
John Swinney, the First Minister, has refused to rule out similar measures in Scotland. Kenneth Gibson, the SNP MSP, said his party was “proud” to have introduced “the most progressive tax system in the UK”. He added: “This progressive approach raises additional revenue to invest in our vital public services in the face of continued Westminster austerity and repeated cuts to Scotland’s block grant.
“The SNP will continue to use the powers it has to deliver real fairness and justice by prioritising investment in public services and tackling poverty. “It is however only with greater tax and borrowing powers, and ultimately independence, that we can fully protect the people of Scotland and [their] public services from the chaos of dysfunctional UK governments.”.
