Scottish Income Tax

I understand your concerns on this issue. I firmly believe in a fair and sustainable tax system which ensures that everyone continues to pay their fair share of tax and allows people to keep more of what they earn.

From April 2017, the Scottish Government decided to set its own rates and bands for income tax. This has led to workers earning over £26,000 paying more tax in Scotland than they would if they lived elsewhere in the UK.

In 2018’s autumn budget, the then-Chancellor, Philip Hammond, announced that income tax changes in England scheduled for 2020 would be introduced a year earlier than planned. This included an increase to the Higher Rate Threshold from £46,350 to £50,000. In Scotland this was not replicated, and the Higher Rate stayed at £43,430. This is despite the Block Grant to the Scottish Government being protected.

On top of this, I believe the Scottish Government is failing to deliver good public services. It appears to me that Scotland is being asked to pay more, but getting less in return.

I believe this tax gap between Scotland and the rest of the UK could make the recruitment and retention of staff more difficult. For example, head teachers have already warned the Scottish Government a looming tax gap will further cripple the education system by making it harder to recruit school leaders.

Thank you again for taking the time to contact me.