defence Secretary Gavin Williamson is being urged to intervene to “clean up the SNP’s mess” and compensate thousands of military personnel facing tax hikes in the wake of the Scottish Government’s Budget.
Scottish Conservative MPs Kirstene Hair and Douglas Ross, who represent Angus and Moray, are fearful that the income tax increase could discourage serving servicemen and women from making their careers north of the border because they face higher tax bills than they would if they served in England.
In a letter to Mr Williamson, they say the tax changes by the Scottish Government “have the potential to detrimentally impact the finances of British service personnel who are currently stationed in Scotland”.
They point out that those earning more than £33,000 will now be taxed more heavily, a change that is likely to affect 14,000 armed forces staff stationed in Scotland.
“This proposal by the Scottish Government is described as providing beneficial cuts to those earning low amounts; however, the savings are actually minimal. Men and women who are beginning their careers will likely see savings of as little as £20 or less. By contrast, more senior personnel who are further on in their careers could see their tax increased by £1,013.
“These changes are deeply concerning, as we are presently trying to depict a career in the British Army as a rewarding experience in a modern organisation. This tax increase on those who have made successful careers in the Armed Forces will only serve to discourage the best and brightest from seeking senior postings in Scotland.”
They add: “We would be grateful if you could provide an update on any plans to compensate those service personnel who will be paying higher income tax from this April.”
Ms Hair, who described the Scottish Government’s Budget changes as “ill-considered” said: “The SNP are punishing these brave personnel simply because they are based in Scotland.
“We are asking the Defence Secretary and UK Government to reach out a hand of support, to help clear up this mess caused by the Scottish Government, and offer to equalise the take-home pay packets of those stationed in Scotland.”
Mr Ross, whose constituency includes RAF Lossiemouth, also accused the Nationalist administration of “punishing” talent and skill.
He added: “I hope we can secure positive action from the Defence Secretary and UK Government to help protect these jobs and ensure people are not turned off from working in Scotland’s fantastic Armed Forces bases because of the SNP’s short-sightedness.”
Derek Mackay, the Scottish Government’s Finance Secretary, has said the tax changes from April 2018 will safeguard lower earners while at the same time allowing ministers to invest a further £400 million in Scotland’s NHS.
The Scottish Government has stressed how seven out of 10 Scots will pay less income tax than they currently are under its plans.
The Scottish Tories have complained the changes will make Scotland the highest taxed part of the UK while Scottish Labour have said the Nationalists have missed the chance to get the richest to pay their fair share by not upping the highest rate to 50p.
A recent poll suggested 67 per cent of Scots supported the changes.
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