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SNP will not adopt UK Chancellor's 40p tax threshold change SNP will not adopt UK Chancellor's 40p tax threshold change
(about 3 hours later)
The SNP said it would not adopt UK government plans to raise the starting point at which workers in Scotland pay the 40p tax rate.The SNP said it would not adopt UK government plans to raise the starting point at which workers in Scotland pay the 40p tax rate.
Leader Nicola Sturgeon, who is also the country's first minister, believed the move was wrong.Leader Nicola Sturgeon, who is also the country's first minister, believed the move was wrong.
She said that if her party won the 5 May election then "no taxpayer" would see their income tax bill rise. However, she said that if her party won the 5 May election then "no taxpayer" would see their income tax bill rise.
In April 2017, Holyrood will receive new powers to set bands and rates which apply to Scotland alone.In April 2017, Holyrood will receive new powers to set bands and rates which apply to Scotland alone.
That will allow the Scottish government not to follow Chancellor George Osborne's plans, announced in his Budget last week, to increase the threshold for 40p tax payers to £45,000 next year.That will allow the Scottish government not to follow Chancellor George Osborne's plans, announced in his Budget last week, to increase the threshold for 40p tax payers to £45,000 next year.
Ms Sturgeon made clear that although she was rejecting the UK's plan, the 40p threshold would still rise by the CPI inflation rate, taking it from £43,000 to £43,387. Ms Sturgeon made clear that although she was rejecting the UK government's plan, the 40p threshold would still rise by the CPI inflation rate, taking it from £43,000 to £43,387.
She said: "That increase will prevent higher rate taxpayers from receiving a real terms cut in their tax bills, but nor will they see their bills increase."She said: "That increase will prevent higher rate taxpayers from receiving a real terms cut in their tax bills, but nor will they see their bills increase."
In addition, the SNP is not proposing to increase the additional rate - for those earning £150,000 or more - from its current 45p level.In addition, the SNP is not proposing to increase the additional rate - for those earning £150,000 or more - from its current 45p level.
The party's plan also includes:The party's plan also includes:
Ms Sturgeon said she believed the approach "balanced the need to invest in and support our public services".Ms Sturgeon said she believed the approach "balanced the need to invest in and support our public services".
She added: "By adopting a different path to the UK government we could generate more than £1bn of additional revenues, enabling us to protect the public services we all rely on. We believe that this proposal is reasonable, it is balanced and it is fair."She added: "By adopting a different path to the UK government we could generate more than £1bn of additional revenues, enabling us to protect the public services we all rely on. We believe that this proposal is reasonable, it is balanced and it is fair."
What are the other main Scottish parties saying?What are the other main Scottish parties saying?
Scottish Labour - Leader Kezia Dugdale said: "Nicola Sturgeon had the chance to be bold, but instead what's clear is that the SNP will make no significant changes to income tax. A year ago, the SNP said they would support a 50p tax rate on people earning more than £150,000 a year - the top 1% of earners. Even on this change - which would see the most well off bear more of the burden - the SNP have bottled it." (Against the 40p threshold change.)Scottish Labour - Leader Kezia Dugdale said: "Nicola Sturgeon had the chance to be bold, but instead what's clear is that the SNP will make no significant changes to income tax. A year ago, the SNP said they would support a 50p tax rate on people earning more than £150,000 a year - the top 1% of earners. Even on this change - which would see the most well off bear more of the burden - the SNP have bottled it." (Against the 40p threshold change.)
Scottish Conservatives - Leader Ruth Davidson: "Nicola Sturgeon has confirmed today that she wants to make Scotland the highest taxed part of the UK. In the last five years alone, 140,000 Scots have been dragged into paying the higher rate of income tax, including public sector servants such as nurses, teachers and policemen and women. Nicola Sturgeon could have chosen to support them today but instead she has decided not to. That is bad for the Scottish economy and bad for Scottish jobs." (For the 40p threshold change.)Scottish Conservatives - Leader Ruth Davidson: "Nicola Sturgeon has confirmed today that she wants to make Scotland the highest taxed part of the UK. In the last five years alone, 140,000 Scots have been dragged into paying the higher rate of income tax, including public sector servants such as nurses, teachers and policemen and women. Nicola Sturgeon could have chosen to support them today but instead she has decided not to. That is bad for the Scottish economy and bad for Scottish jobs." (For the 40p threshold change.)
Scottish Greens - Co-convenor Patrick Harvie said: "In the independence referendum, and in the Smith Commission, the Scottish Greens argued alongside Nicola Sturgeon and John Swinney that Scotland needed the power to build a fairer, more equal society and an economy that protects our vital public services and invests in our young people's future. To finally win these powers and then not use them is extraordinary." (Against the 40p threshold change.)Scottish Greens - Co-convenor Patrick Harvie said: "In the independence referendum, and in the Smith Commission, the Scottish Greens argued alongside Nicola Sturgeon and John Swinney that Scotland needed the power to build a fairer, more equal society and an economy that protects our vital public services and invests in our young people's future. To finally win these powers and then not use them is extraordinary." (Against the 40p threshold change.)
Scottish Lib Dems - Leader Willie Rennie said: "The SNP's proposals are pathetically timid. This plan raises no extra money, not a single pound more, for public services desperately in need of investment. This is a missed opportunity; the SNP are refusing to use the full set of new tax powers coming to us at Holyrood. The Liberal Democrats' penny on income tax for education would make a transformational investment in education. £475m a year for nurseries, schools and colleges." (Against the 40p threshold change. )Scottish Lib Dems - Leader Willie Rennie said: "The SNP's proposals are pathetically timid. This plan raises no extra money, not a single pound more, for public services desperately in need of investment. This is a missed opportunity; the SNP are refusing to use the full set of new tax powers coming to us at Holyrood. The Liberal Democrats' penny on income tax for education would make a transformational investment in education. £475m a year for nurseries, schools and colleges." (Against the 40p threshold change. )
What's happening with Scotland's taxes?What's happening with Scotland's taxes?
April 2016April 2016
April 2017April 2017
Read more hereRead more here