Scottish Government admits it can mitigate tax credit cuts

Written by Tom Freeman on 4 November 2015 in News

Alex Neil says amendment to Scotland Bill allows Scottish Government to act on tax credit cuts

Social justice secretary Alex Neil has accepted the Scottish Government can use new powers laid out in the Scotland Bill to offset the impact of future UK Government cuts to tax credits.

It comes less than 24 hours after the Scottish Government had said the power wasn’t being devolved.

In a Scottish Labour debate in the Scottish Parliament Neil was challenged to match a new Labour policy to restore tax credit cuts, funded by raising the top level of income tax.

“Once we hear the details of the Chancellor’s changes, have a clear final version of the Scotland Bill, and know the outcome of the comprehensive spending review the Scottish Government will set out credible proposals to support low income households,” he said.

Neil told the chamber the wording of an amendment published today might allow the government to do more than it thought.

“After nearly a year of pressure the UK Government has finally recognised that its bill did not deliver the Smith agreement. These new amendments should allow the Scottish Government to introduce new social security measures, in line with Scottish priorities,” he said.

Scottish Liberal Democrat leader Willie Rennie said it had been “a humiliating day” for the cabinet secretary while Labour’s Jackie Baillie said if the SNP did not vote for Labour’s motion it would prove the "politics of grievance is more important to them than helping working families in Scotland".

Scottish Secretary David Mundell said earlier “there is no doubt” the Scottish Government “will be able to make top-up payments to people on reserved benefits including tax credits”.



Related Articles

"Where will people live?" How short-term lets are hitting Edinburgh
9 July 2018

The growth in short term tourist lets has led to calls for greater regulation to protect city centres

Brexit and Scotland's rural economy
21 June 2018

Concern over challenges faced by rural communities have been long-running, but with Brexit on the horizon, new ones have emerged

Crown Estate Bill introduced to Scottish Parliament
25 January 2018

Scottish Crown Estate Bill will transfer management of Scottish Crown Estate assets to local communities on a case-by-case basis

Scottish Parliament committees question ambition of draft climate change plans
10 March 2017

Draft climate change plan sets out the Government’s emission reduction strategy over the next 15 years

Related Sponsored Articles

Share this page