Friday, 30 November 2018 06:04

TORY TAX PLANS LEAVE £1 BILLION SPENDING GAP FOR PUBLIC SERVICES

Tory tax plans would leave Scottish public services with a £1 billion black hole, new analysis has confirmed. 
 

New analysis by IPPR Scotland has found that mirroring UK government income tax plans would cost Scotland over £1bn over four years, which the think tank has described as “unaffordable”.
 
The Tories have repeatedly insisted the Scottish Government should not divulge from the UK government on tax – despite the Chancellor handing high earners a tax break while hammering low-income households.
 
Polling has found the Scottish public overwhelmingly supportive of the SNP’s approach to tax, with higher earners facing a modest increase to support public services and low earners given a small tax cut.
 
Commenting, SNP MSP Angela Constance said:
 
“After years of austerity, the Tory obsession with handing high earners tax breaks is completely out of touch.
 
“And as this new research has found, matching Westminster handouts to the rich would be unaffordable – and would harm our health service, our schools and our economy. 
 
“The SNP’s progressive and fair approach to tax is allowing us to invest in education and hospitals – while the Tories would double down on their Westminster austerity and leave our public services starved of cash.”
 


IPPR Scotland analysis:

Table – the cost per year in Scotland of matching UK government tax cut for higher earners

Costs of matching UK government policy in Scotland in dynamic terms (including behavioural response)
(real-terms, 2018/19 prices)
2019-20    -£280m
2020-21    -£260m
2021-22    -£260m
2022-23    -£260m
Total (cumulative)    -£1060m
 
YouGov for the Times (18th January):

Do you support the tax changes announced in the budget (everybody earning more than £26,000 to pay more than their counterparts in the UK, everybody earning less than that, to pay less than their UK counterparts).

Support: 54 per cent
Oppose: 27 per cent
Don't know: 19 per cent

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