SNP claims that the majority of working Scots pay less income tax than those south of the border are no longer true, the Scots Tories have revealed.
Analysis of the most recent earnings data shows that, because the Nationalist government has not increased tax thresholds in line with rising salaries, the boast no longer stacks up.
At the end of last year, the Scottish Government admitted that everyone who earned over £27,850 paid more in income tax.
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But, using recently published wage growth data, the Scottish Conservatives have calculated that the average Scot will earn £29,095.50 in 2023 – well above this threshold.
Shadow finance and economy secretary Liz Smith said the stealth tax rises imposed by successive SNP finance ministers have finally caught up with them.
She insisted they must stop making the claim that the majority of Scots pay less tax than people elsewhere in the UK because it is just not true. Indeed, overall, Scotland is the highest taxed part of the UK.
Ms Smith added that the tax gap between Scotland and the rest of the UK is already a serious problem – something that is acknowledged by business – and any further increase would do untold damage to our competitiveness.
She said: “SNP ministers must stop using this claim immediately, as it no longer stands up to scrutiny.
Tory tax calculations
The Scottish Government state that everyone earning more than £27,850 pays more income tax in Scotland.
At the time of publishing the 2023-24 budget, they said this constituted 48% of Scottish taxpayers.
But average earnings are forecast to grow by 5% in 2023 according to the Office for Budget Responsibility.
Given that average earnings in Scotland were £27,710 in 2022, then applying a 5% growth rate to this figure produces a value of £29,095.50.
This means the SNP’s claim that most taxpayers in Scotland pay less tax is no longer true.
“Failing to increase tax thresholds in line with rising wages, amounts to a tax hike – and these stealth tax rises have finally caught up with them – and thousands of Scots on relatively modest incomes.
“This boast was always based on careful, cynical spin anyway, because the ‘majority’ were paying a minuscule amount less tax than those south of the border, while the rest were paying substantially more.
“It was a clever bit of smoke and mirrors designed to disguise the fact that Scotland is by far the highest taxed part of the UK. But, even on its own terms, the claim is simply untrue now – and ministers must admit as much.
‘Another hammer blow to the Scottish economy’
Announcing the 2023-24 budget, stand-in finance secretary John Swinney said: “The majority of people in Scotland will still pay less in taxation than if they lived in the rest of the United Kingdom.”
Deputy first minister Shona Robison, who was chosen as finance secretary despite having no previous economic or fiscal experience, has also repeated the claim.
She said last month: “At the same time, the majority of taxpayers in Scotland will still be paying less income tax than if they lived in the rest of the UK.”
Meanwhile, the First Minister has said he is “very interested” in imposing further further tax hikes and “very keen to make an early start in exploring the various different options”.
In an address to the STUC annual conference, Humza Yousaf said: “However, on progressive taxation let me say unequivocally that I think there is scope for us to go even further.
Ms Smith said: “Scotland is already at a competitive disadvantage with the rest of the UK because of the higher taxes imposed by the SNP.
“Worryingly, Humza Yousaf – doubtless inspired by the extremist Greens – is talking of widening that gap further. That would deliver another hammer blow to the Scottish economy and hard-working Scots.”
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