SCOTTISH ministers’ tax policies could force firms to pay a “supplement” to keep skilled staff north of the Border, the Tories have warned.
The party will renew calls for ministers to rethink their income tax plans in a Holyrood debate the day before Finance Secretary Derek Mackay reveals his draft Budget for 2017/18.
With MSPs taking control over income tax rates and bands from April, the SNP has said it will keep rates the same as the rest of the UK but will not proceed with UK Government plans to raise the 40p higher rate of tax threshold to £50,000.
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The Tories will use their parliamentary debating time to warn that higher income tax in Scotland could push companies to move.
The party highlighted a submission from chartered accountants Johnston Carmichael to Holyrood’s Finance Committee, which said: “Attracting and retaining individuals to work in Scotland will be costly for businesses if it becomes necessary to offer tax equalisation packages should the Scottish rates of income tax be higher than in the rest of the UK.
“For some businesses where, for example, the workforce are skilled, this cost will be significant and may gave rise to business relocating elsewhere in the UK or indeed outside the UK altogether.
“A number of our clients are flexible and ready to move should the costs of retaining a Scottish base become penal.”
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Scottish Conservative finance spokesman Murdo Fraser said: “The reality of the SNP’s tax grab is that firms may end up having to pay high-quality staff a ‘Scottish supplement’ simply to persuade them to stay.”
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