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| Scottish income tax changes unveiled | Scottish income tax changes unveiled |
| (35 minutes later) | |
| The Scottish government has announced income tax changes that will see higher earners pay more than elsewhere in the UK - and lower earners pay less. | The Scottish government has announced income tax changes that will see higher earners pay more than elsewhere in the UK - and lower earners pay less. |
| The country's finance secretary, Derek Mackay, announced a new tax band of 21p for those earning more than £24,000. | The country's finance secretary, Derek Mackay, announced a new tax band of 21p for those earning more than £24,000. |
| The higher rate of tax will be increased from 40p to 41p and the top rate from 45p to 46p. | The higher rate of tax will be increased from 40p to 41p and the top rate from 45p to 46p. |
| But a starter rate of 19p in the pound will also be introduced, Mr Mackay confirmed in his draft budget. | |
| Mr Mackay said the move will mean no one earning less than £33,000 in Scotland will pay more tax. | Mr Mackay said the move will mean no one earning less than £33,000 in Scotland will pay more tax. |
| And he told the Scottish Parliament that those earning above that figure would only pay a "proportionate amount more" than they currently do. | And he told the Scottish Parliament that those earning above that figure would only pay a "proportionate amount more" than they currently do. |
| The Scottish government was given powers over income tax rates and bands last year, with the new rates being paid by anyone who lives in Scotland. | The Scottish government was given powers over income tax rates and bands last year, with the new rates being paid by anyone who lives in Scotland. |
| Mr Mackay had faced warnings from business leaders and the Scottish Conservatives ahead of his budget statement that Scotland could not afford to be associated with higher taxation than the rest of the UK. | Mr Mackay had faced warnings from business leaders and the Scottish Conservatives ahead of his budget statement that Scotland could not afford to be associated with higher taxation than the rest of the UK. |
| But Mr Mackay said that more than two thirds of income taxpayers will pay less tax than they currently do under his proposals, which will need to be approved by MSPs before coming into force from April 2018. | |
| And he said 55% of taxpayers in Scotland will pay marginally less next year than they would in the rest of the UK. | |
| 'More progressive' | |
| The finance secretary insisted the changes - which he said would raise an additional £164m - were necessary to "mitigate UK budget cuts, protect our NHS and other public services, support our economy and tackle inequality in our society." | |
| He said the tax reforms would make "Scotland's income tax system even fairer and more progressive". | |
| And he said a bigger increase in the top rate of tax for those earning more than £150,000 - which some opposition parties had called for - would actually reduce revenue as high earners would find ways to avoid paying it. | |
| What else did Mr Mackay announce? | |
| Among the other measures in the budget were: |