Labour’s tax plans could have raised more than £1bn extra revenue over two years

LAURA PATERSON

budgets in 2016/17 and 2017/18 were rejected at Holyrood.

Analysis confirmed by the Scottish Parliament Information Centre (SPICe) indicates the Scottish Government could have gained

£1.075 billion from the changes.

Labour’s attempt to add an extra penny to all tax bands during the 2016/17 budget could have brought in an extra £475 million.

The party altered its policy for the following budget to put 1p on the basic and higher rates of income tax and to restore the 50p top rate for those earning more than £150,000 a year, which could have boosted revenue by £600 million. SPICe highlighted the figures do not account for any behavioural responses that might occur following a change in taxes or benefits and the Scottish Government has warned increasing the top rate of tax could lead to an exodus of higher earners.

Nicola Sturgeon committed a discussion on “responsible and progressive use of our tax powers” in her legislative programme last week.

Labour claims the First Minister should adopt their tax policies as the only solution to Tory austerity.

Interim Scottish Labour leader, Alex Rowley, said: “If Nicola Sturgeon is serious about tax then she needs to recognise that it is only Labour’s tax policies which end Tory austerity and which allow us to invest instead to give people the support they need from public services.”

A Scottish Government spokeswoman said:“We will always set tax rates responsibly and with the interests of households, businesses, wider society and the economy firmly at heart. We will not simply transfer the burden of austerity on to the shoulders of those who can least afford it.”

She added the Government has “helped protect family budgets and ensured the people of Scotland benefit from a wide provision of quality public services”.