Stephen Flynn demands Labour hike taxes to fund defence spending boost

STEPHEN Flynn has called on the UK Government to hike taxes to fund a splurge on defence spending.

The SNP’s Westminster leader said that Labour should “replicate Scotland’s progressive taxation system” to bring in billions more to Treasury coffers rather than raiding the foreign aid and welfare budgets.

Speaking on the BBC’s Politics Live programme, Flynn demanded Labour rip up their self-imposed fiscal rules – expected to result in billions being slashed from the benefits budget – to fund increased defence spending.

The UK Government has pledged to cut international aid to 0.3% of gross national income – or around £6 billion per year – to fund an increase in defence spending. 

Labour have trumpeted that defence spending would increase defence spending by an extra £13bn per year and experts at the Institute for Fiscal Studies have said it is “frustrating” the numbers do not appear to sum.

After expressing support for Labour’s plans to increase defence spending, which the main UK parties including the SNP agree is necessary given Donald Trump's insistence that European countries hike military spending, Flynn was asked how he would pay for it.

(Image: PA)

“Taxation is where I would probably be looking,” said Flynn.

“If the UK Government was to replicate Scotland’s progressive taxation system, there would be billions of pounds extra in the Treasury to spend on the very things that we need.

“But instead what we’re going to see is an ideological position adopted and agreed with between the Labour Party and the Conservative Party that the welfare budget is the thing to go after and if anyone refute that argument I’d be very keen to here that.”

He said that the UK Government “must break” its fiscal rules, which limit its ability to borrow money.

Flynn added: “Firstly, we had the supposed £22 billion black hole and they’ve sought to fill that through certain measures.

“Now they’re saying that we rightly need to improve and invest in our defence forces. I agree with that but the only way to make a material change to the money that’s coming in.”