HOW NOW TAX VOW
HOLYROOD APPROVES CHANGES Historic Record front page leads to plan to make richest pay more
MSPs rubber-stamped major changes to taxation last night – thanks to The Vow of more powers for Scotland.
Holyrood was divided on the SNP’s plan to hit higherearners harder – but spent the afternoon setting out how they’d use the power to improve life for Scots across the country.
It was the first time Parliament made significant changes to income tax bands, more than three years after the independence referendum.
The Record revealed the promise of more devolved powers just days before the 2014 indy vote.
Since then, Holyrood have taken on more powers, including major welfare and taxation responsibility.
Last night’s vote means none of the 1.8million Scots earning less than £33,000 will pay more tax than they do now.
Anyone earning above that level will pay more than someone in the rest of the UK.
The Scottish Government insist the move will help improve public services and combat Tory austerity.
Labour said it is a “timid” response, while Conservatives claimed Scots are being penalised.
A new starter rate kicks in at 19 per cent for people earning between £11,850 and £13,850.
A top rate of 46 per cent will be imposed on people earning above £150,000.
Finance Secretary Derek Mackay set the tax levels ahead of a final vote on the overall Scottish budget today, which will be approved with the help of Holyrood’s six Green MSPs. Mackay is promising more cash for the NHS, support for new housing and expansion of childcare. He said: “I believe these actions, alongside our progressive tax proposals, will make Scotland a more attractive place to live and work and delivers a stronger economy and a fairer society.” But Labour finance spokesman James Kelly claimed the Scottish Government were serving up an “austerity budget” that would see cuts to services. Kelly said: “The SNP-Green budget stitch-up leaves local services with a £386million shortfall.” Tory finance spokesman Murdo Fraser said: “This rise in income tax penalises hard-working Scottish families.”