Tories demand almost £1 billion in tax cuts from SNP's Scottish Budget

THE Conservatives have proposed almost £1 billion worth of tax cuts for the upcoming Scottish Budget.

Finance Secretary Shona Robison is set to lay out the draft spending plans for 2025-2026 in the Holyrood parliament on December 4, and has been engaged in negotiations with other parties ahead of the announcement.

The SNP minority government will need at least one opposition party’s backing to pass their Budget. The Greens have said that a red line for their support is no cuts to independence spending.

The Tories, in proposals made public on Tuesday, have suggested tax cuts which they say will cost “approximately £936-£984 million”.

The UK Government Budget announced in October contained around £3.4bn extra for the Scottish Government’s Budget in 2025-2026, according to the Fraser of Allander Institute.

Scottish Tory leader Russell Findlay has written to First Minister John Swinney with his proposals to use some of this extra money to fund swingeing tax cuts, which include:

• Scrapping the 20p and 21p tax rates, so all income below £43,662 is taxed at 19p on the pound. The Tories said this would mean that everyone earning less than £45,000 – which includes approximately 85 per cent of Scottish taxpayers – would pay less tax than if they lived in the rest of the UK.
• A 100 per cent rate relief for pubs and restaurants next year, meaning they would pay no business rates at all, alongside 40 per cent rates relief for Scottish retail, hospitality and leisure businesses.
• Land and Buildings Transaction Tax (LBTT) reduced to zero on all residential properties up to £250,000, which the Tories said would save the average house buyer approximately £800.

However, Findlay has conceded that his plans are “unlikely” to be accepted.

He said: “Our common sense tax plan would cut bills for workers, businesses and would-be homeowners.

“We would start to undo the damage of SNP tax rises by reducing income tax, business rates and LBTT.

“The SNP, Labour and other left-wing parties in the Scottish Parliament are unlikely to support it because they seem to think they can keep taking so much of taxpayers’ money while giving so little in return.

First Minister John Swinney will need to strike a deal to pass his budget (Image: Jane Barlow/PA Wire) “Our common sense plan is an alternative approach to what Holyrood usually comes up with. This plan is bold and ambitious. It would provide families and businesses with more freedom and control over the money they work so hard to earn.

“We believe it will be backed by aspirational workers and businesses across Scotland, even if it’s not supported by the SNP.”

A Scottish Government spokesperson said: “Ministers are committed to building as broad support as possible across Parliament in order to deliver the forthcoming budget. Engagement with all parties is ongoing ahead of the draft budget being set out in the Scottish Parliament on 4 December.”