SCOTTISH Conservative leader Douglas Ross has been slated for demanding that Holyrood replicates the tax cuts announced by the UK Government on Friday.
Speaking in the House of Commons, Kwasi Kwarteng brought forward a cut to the basic rate of income tax in England to 19p in the pound as part of tax cuts costing up to £45 billion annually.
He also cut stamp duty for homebuyers in England, confirmed the cap on bankers’ bonuses would be scrapped and set out proposals to limit Universal Credit claimants’ income via a new work-coach programme.
The rich win big in Kwarteng's mini-budget
According to the Institute for Fiscal Studies, only those earning over £155,000 will be net beneficiaries of the Chancellor’s new policies – with 5% of top earners getting richer while everybody else gets poorer.
The Resolution Foundation think tank added that under the tax-cutting scheme, someone earning £1 million a year would gain more than £55,220 a year, while someone on £20,000 would gain only £157.
Despite widespread warnings that the Tory plans to bring in tax cuts funded by billions of pounds of additional borrowing is “unsustainable” for the economy and will only benefit the wealthiest, Moray MP Ross called on the Scottish Government to deliver the same cuts north of the Border.
“The UK Government has delivered tax cuts to turbo-charge our economy,” the Scottish Conservative chief said as she shared a graphic reading “Sturgeon must cut tax for 2.4 million Scots”.
“The SNP must match these bold plans,” he went on, “and pass on the UK tax cuts to 2.4 million Scottish people.”
Stephen Kerr (above), Ross’s recently promoted education spokesperson, was concerned that the difference in tax systems would hold Scotland back – at the same time as Kwarteng’s announcement saw the pound plunge to the worst level for decades.
“We already pay more income tax, if the gap gets wider we’ll find it very difficult to attract people and businesses to Scotland,” he claimed.
What is the tax difference between England and Scotland?
According to the Charted Institute of Taxation, people earning more than £55,000 in Scotland now face paying more than £2000 extra in taxes than they would living south of the Border.
Those earning up to the median annual pay in Scotland - £25,616, according to Scottish Parliament research – will pay between £22 and £124 more per year than their English counterparts.
Ross’s intervention prompted more than 1500 responses on Twitter, with many arguing they would happily pay more tax if it results in better public services.
'Less funding is what Tories want'
SNP MSP Gillian Martin pointed out that Ross had a “meltdown” over NHS waiting times in the Scottish Parliament just days ago, but now wants taxes slashed.
“Tax cuts means less money for our NHS and public services that help ALL PEOPLE,” she told the MSP. “Less funding for public services is what Tories want- because they want to dismantle the NHS.”
Former SNP MP Dr Paul Monaghan asked what cutting taxes would achieve during a time of difficulty for those kinds of services.
“How will that help address social inequalities and economic hardships?” he asked. “Surely we want to help the old, poor and vulnerable in our society that are now living in absolute poverty.”
One parent listed the benefits of taxation in Scotland. “Higher tax payer here, and happy to pay it,” said @IonCromar. “My oldest went thru uni, youngest in his 2nd year now, and I haven't had to pay a penny, and, so far, they haven't had to get into debt. That's gold dust [in my opinion]. So, ram your horrible Tory policies.”
What has Nicola Sturgeon said?
There is no indication that the Scottish Government would replicate the tax cuts in Holyrood, where it is expected to put an emergency budget within the next few weeks.
First Minister Nicola Sturgeon slammed Friday’s mini-budget, saying the “super rich [would be] laughing all the way to the actual bank” thanks to Kwarteng’s policies.
She questioned the Tories calling on her government to “blindly follow suit”, arguing the policies would benefit the richest, had already seen the pound tank and push up the cost of borrowing.
According to the University of Strathclyde’s Fraser of Allander Institute, it would cost the Scottish Government around £400 million to replicate the Tories’ proposals.
The Treasury claims that Scotland will see more than £600m in extra cash over three years following the tax and stamp duty cuts.
