Labour must take inspiration from Scotland's 'fair' tax system, SNP demand

LABOUR should take inspiration from Scotland’s “more progressive and fair" tax system, MPs have heard.

SNP MP Dave Doogan said Scotland’s tax regime meant the better-off paid more in tax while those on lower incomes paid less than in the rest of the UK.

Speaking in the House of Commons on Wednesday morning, Doogan (below) asked Scottish Secretary Ian Murray: “He’ll know that the Scottish Government has its own tax-raising powers – he’ll remember criticising the Scottish Government for not using them then criticising the Scottish Government when we did use them.

(Image: Newsquest)

“But nevertheless, it generates £1.5 billion extra revenue in Scotland by taxing those who earn more slightly more and allows us to tax those who are earning slightly less even less than they do in the rest of the United Kingdom.

“What advice would he give the Chancellor to mirror those efforts in Scotland to have a more progressive and fair tax system for our workers?”

Responding, Scotland Office minister Kirsty McNeill (below) said: “The member will be aware that the Institute for Fiscal Studies has said this morning that the tax policies of the Scottish Government have actually cost Scotland money rather than raised it.

(Image: Kirsty McNeill)

“And he’ll know too that this Government has had to undertake a comprehensive audit of spending to make sure that we can clear up the mess that we’ve inherited – the £22bn black hole is real, the Treasury reserves have been spent more than three times over – and he’ll be aware that our focus for the Chancellor is in making sure we fix the foundations and get the economy back on track.”

Scots earning more than £28,850 pay more in income tax than they would if they lived in England, while those earning less than that – which is slightly above median earnings – paying less than those south of the Border. 

Research by the Institute for Fiscal Studies has found that the cost of covering the SNP's council tax freeze was almost double the amount raised by higher taxes and concluded that the Scottish Government's policies had "reduced rather than raised revenues".