The Scottish Tories have branded an SNP claim that the majority of Scots pay less income tax than those south of the Border as now “simply untrue” following new analysis by the opposition party.

At the end of last year, the Scottish Government admitted that everyone who earned more than £27,850 paid more in income tax north of the Border.

But, using recently published wage growth data, the Scottish Conservatives have claimed that the average Scot will earn £29,095.50 in 2023, well above this threshold.

The Scottish Government said that the 52 per cent of Scottish taxpayers who earn less than £27,850 will continue to pay slightly less income tax than if they lived in other parts of the UK.

The shadow finance and economy secretary, Liz Smith, said that SNP ministers’ “stealth tax rises” have finally caught up with them.

She insisted they must stop making the claim that the majority of Scots pay less tax than people elsewhere in the UK. 

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She added that the tax gap between Scotland and the rest of the UK is already a serious problem – something that is acknowledged by business – claiming that any further increase would do untold damage to Scotland's competitiveness.

Ms Smith said: “SNP ministers must stop using this claim immediately, as it no longer stands up to scrutiny.

“Failing to increase tax thresholds in line with rising wages, amounts to a tax hike – and these stealth tax rises have finally caught up with them – and thousands of Scots on relatively modest incomes.

“This boast was always based on careful, cynical spin anyway, because the ‘majority’ were paying a miniscule amount less tax than those south of the Border, while the rest were paying substantially more.”

The Tory MSP said that the previous SNP claim was “a clever bit of smoke and mirrors designed to disguise the fact that Scotland is by far the highest taxed part of the UK”.

She added: “But, even on its own terms, the claim is simply untrue now – and ministers must admit as much.

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“Scotland is already at a competitive disadvantage with the rest of the UK because of the higher taxes imposed by the SNP.

“Worryingly, Humza Yousaf – doubtless inspired by the extremist Greens – is talking of widening that gap further. That would deliver another hammer blow to the Scottish economy and hard-working Scots.”

In the SNP leadership election, Humza Yousaf pledged to create a new band of income tax for earnings between £43,662 and £125,140 – saying at the time the money raised could be used to fund increases to the Scottish Child Payment.

Since becoming First Minister, Mr Yousaf has stressed the need to be “bold” on tax, but as yet no changes to rates or bands have been announced.

 

A Scottish Government spokesperson said: “The Scottish Government is proud to have the fairest and most progressive tax system in the UK.

"Changes to income tax in Scotland came into force last month and are estimated to raise more than half a billion pounds of additional revenue this financial year to support vital public services.

“This progressive system has helped strengthen our social contract with every citizen in Scotland which goes significantly beyond provision in the rest of the UK – including free prescriptions, free access to higher education and the Scottish Child Payment.”