STUC on Scottish Government's plans for income tax

March 22nd 2016

Commenting after the First Minister had set out the Scottish Government's plans for income tax over the next Parliament, Grahame Smith, said:

"The plans announced today represent a disappointingly timid approach to income tax policy.

"Refusing to pass on the Chancellor's big tax cut for higher rate payers is the least the STUC would have expected. Breaking the consensus on increasing the additional rate is difficult to fathom.

"Relying solely on more people being pulled into the higher and additional rate tax brackets by only increasing thresholds by rate of inflation is an approach that is difficult to reconcile with the Scottish Government's generally laudable social and economic objectives.

"From next year the Scottish Government will possess full control of rates and thresholds. It also has the modeling capacity to design a fairer, more resilient system in which the 'burden' is shared fairly across the income distribution. Furthermore, the Scottish Government currently possesses sufficient political capital to introduce bold measures.

"The STUC accepts that raising taxes is not a pursuit politicians find attractive. But if the Scottish Government can't summon the courage to propose major progressive change at this moment in time we have to ask if it ever will?"

ENDS

Contact Stephen Boyd 0141 337 8100

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