FOLLOWING Chancellor Kwasi Kwarteng’s announcement of the biggest tax cuts in decades for people in England, Scottish Tories are calling on the Holyrood government to replicate the move and limit the difference in rates across the Border.
Kwarteng’s decision to massively increase borrowing to bring forward tax cuts which benefit the wealthiest while leaving 95% of the public worse off – according to the Resolution Foundation – has been heavily criticised across various parties and think tanks.
According to the Institute for Fiscal Studies, only people earning more than £155,000 a year will see a net benefit from the policy change.
What’s more, the move sent markets tumbling – with the pound hitting a 37-year low against the dollar, ultimately meaning higher prices for people in Britain.
But despite fears for the economy and heightened inequality, Scottish Tory chief Douglas Ross is demanding Nicola Sturgeon mirror the cut here.
Research from the Charted Institute of Taxation calculated the differences between English and Scottish tax rates which will come in from next year.
Those earning up to £20,000 will need to pay around £52 more in Scotland a year. People who bring in around the median salary of £25,000 face handing over an additional £102.68 a year. For those on £35,000 the extra amount is around £300, and for £45,000 it’s £763.40.
Once salaries reach more than £50,000, people need to hand over nearly £1900 more than they would if they lived south of the Border.
The Tory calls for tax parity with England have sparked lively debate, with many Scots arguing that they’d be happy to pay more if it means stronger public services.
Others criticised Ross for his political focus on challenges in the public sector, particularly the NHS, while he calls for tax cuts at the same time.
Scottish actor Martin Compston got involved too, calling the tax cuts an “absolute disgrace”.
“Those who earn more should be paying more in periods like this. I don’t want to pay more tax same as everybody else but when people are literally struggling to keep their lights on more than happy to be paying 46% here in Scotland.”
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