3 November 2017
First Minister Nicola Sturgeon has launched a discussion paper examining the role of income tax in Scotland’s budget.
.@DerekMackaySNP & @nicolasturgeon launch discussion paper to examine role of income tax in Scotland’s budget https://t.co/mDJPdW4fDy pic.twitter.com/m3sAnKwBgG
— Scottish Government (@scotgov) November 2, 2017
Speaking in Edinburgh alongside Finance Secretary Derek Mackay, the First Minister laid out four key tests for any new income tax policy:
Any changes must:
- Maintain and promote the level of public services which the people of Scotland expect;
- Ensure the lowest earning taxpayers don’t see their taxes increase;
- Make the tax system more progressive and reduce inequality; and
- Along with corresponding decisions on spending, support the economy.
The @scotgov discussion paper on income tax sets out four key tests that any future tax policy in Scotland must meet. #scottishtax pic.twitter.com/7FTITEQJQQ
— Scottish Government (@scotgov) November 2, 2017
The First Minister said:
“Scotland now has a greater measure of fiscal control than at any time since the start of devolution.
“By far the biggest fiscal lever we have is income tax – with 30% of Scotland’s budget now coming from income tax receipts. Of course, more than 60% of Scotland’s spending power is still dependent on decisions taken at Westminster.
“With that greater ability to levy tax comes a corresponding duty to do so responsibly and in a balanced way. My government will always do exactly that.
“But as the impact of austerity, Brexit and changing demographics bears down even harder, it is now time to ask ourselves some tough questions.
“It is to help aid and inform that discussion that this consultation paper is being published today.
“Let me stress that these alternative approaches are not at this stage firm policy proposals – that will come in the budget. Nor do they form an exhaustive list. They simply illustrate some of the options open to us.
“As a Government, we will not propose alterations to income tax rates lightly.
“But after rigorous, careful and considered discussion, we will bring forward policy proposals that we consider to be in the interests of the country as a whole.”
FM @NicolaSturgeon launches discussion paper on the role of income tax in Scotland’s budget – read full speech https://t.co/GN5x0qsGZ0 pic.twitter.com/56IXv56qC2
— First Minister (@ScotGovFM) November 2, 2017
The Role of Income Tax in Scotland’s Budget sets out the powers the Scottish Parliament has over income tax, the contribution income tax makes to the budget, who pays tax and the benefits of taxation for individuals and businesses.
