THE Finance Secretary has confirmed the SNP government is considering whether to raise the top rate of income tax in Scotland to 50p next year, in line with a manifesto commitment.
Derek Mackay told MSPs the First Minister has asked her Council of Economic Advisers to consider whether raising the current 45p rate for those earning over £150,000 was possible.
Nicola Sturgeon has previously refused to hike the additional rate in case it prompts high earners to leave Scotland or rearrange their affairs causing the tax take to fall.
Despite refusing to use Holyrood’s new powers to set a 50p rate for 2017-18, Ms Sturgeon last week hinted it could be SNP policy for the UK as a whole at the general election.
Labour, which had long called for a 50p top rate, said that amounted to hypocrisy.
At Holyrood, Labour MSP Anas Sarwar asked Mr Mackay to set out the SNP government’s current position.
He said: “The First Minister has asked the Council of Economic Advisers to consider how and to what extent this risk can be mitigated, and if we are sufficiently assured that it can be, that we consider raising the additional rate from 45p to 50p from 2018/19 onwards as part of budget considerations."
Tory finance spokesman Murdo Fraser said: “The SNP has already made Scotland the highest-taxed part of the UK. This damaging move would take that to a new level.
“There is absolutely no reason why Scots should have to pay more tax than other workers across the UK.
“Increasing taxes will punish workers, harm the economy and raise less money, and the SNP would be making a huge mistake if it adopted this policy.”
Mr Mackay’s comment confirmed a statement in the SNP manifesto for last year’s Holyrood election, which said: “We will ask the Council of Economic Advisers to consider how and to what extent this risk can be mitigated and if we are sufficiently assured that it can be, we will consider raising the additional rate from 45p to 50p from 2018/19 onwards.”
Scottish Labour leader Kezia Dugdale said: “This desperate attempt to win back voters who are deserting the SNP for its record of failure in office won’t fool anyone.
“In 2015 Nicola Sturgeon supported a 50p top rate of income tax, then joined forces with the Tories to vote down such a proposal in the Scottish Parliament.
“She says one thing before an election in an attempt to sound Left-wing, but acts Right when she actually has to make decisions in government.
“Nicola Sturgeon has cut over £1.5bn from local services during her time in government, and she has refused to use the tax powers of Holyrood to stop those cuts every step of the way.
“Only Scottish Labour has a plan to make the richest pay their fair share.”
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