Scottish Government urged to cut income tax

The Scottish Government has been urged to cut income tax in its upcoming budget.

Scottish Tory leader Russell Findlay said the decision by the UK Government to abolish the two-child cap on benefits freed up money earmarked to mitigate that policy in Scotland.

He argued ministers should instead use that cash to cut income tax.

First Minister John Swinney said the approximate £155m will be used on other measures to tackle child poverty.

He also confirmed his government would not increase income tax rates in its budget, but he did not commit to a cut.

Scottish taxpayers earning over £27,492 pay more in income tax than counterparts elsewhere in the UK.

However, a starter rate which does not exist in the rest of the UK means those earning between £12,571 and £15,397 pay a penny less.

But Findlay accused the SNP of having broken a 2021 manifesto promise to not raise income tax when it increased the higher rate and top rate of income tax in recent years.

He added: “Scotland’s workers, families and businesses deserve to know if more of their hard-earned money is going to be swiped by the SNP. But John Swinney cannot be trusted about any taxes rises he’s possibly planning.”

Swinney denied his party had broken any commitments, highlighting the manifesto caveated its pledges on tax with needing to be “mindful of the economic context”.

He argued Russia's invasion of Ukraine and Liz Truss's Budget shifted that economic context.

But he said of the next budget: “The Scottish Government will not increase income tax rates or introduce any new bands.”

And on Findlay's call to use the £155m saved for tax cuts, he said ministers would “allocate that money to reduce child poverty even further”.

The Scottish Government will deliver its budget on 13 January.

Scottish Labour's Anas Sarwar said the UK Government would deliver the “greatest reduction in child poverty from a single Budget this century”.

He criticised the SNP for not acting to lift the two-child cap for eight years, saying his party did it in 18 months.

Swinney hit back, saying the UK Government had been “shamed” into acting by his party.

He suggested the decision was because “Labour has realised there's an election coming in May”, before going on to criticise the Budget for not doing enough to reduce fuel bills or protect jobs in oil and gas.