Hundreds of Scottish Government staff pay taxes in England, figures show

The Scottish Tories have said it is “embarrassing and telling” that 280 Scottish Government employees pay tax in England.

Figures released to the party under freedom of information show about 1.7% of those working for the Government reside in England, and pay taxes to the UK Government, as of December 27.

In total, 16,345 people work across Scottish Government departments.

The Tories claim the figure demonstrates behavioural change caused by higher income tax rates in Scotland, although it is not clear why staff take decisions to live in England.

The figures come after Deputy First Minister Shona Robison announced further tax divergence from the rest of the UK last month as she laid out the Government’s budget.

Under the plans, the top rate of tax will increase by 1p in the pound, while a new rate for those earning above £75,000 will be introduced.

According to the Scottish Fiscal Commission (SFC), those living in Scotland and earning more than £28,850 pay more tax than in the rest of the UK, with the impact largely seen in those earning more than £50,000.

Median earnings for next year, the body said, would be about £28,200.

Scottish Tory finance spokeswoman Liz Smith said the difference in tax rates north and south of the border is a “huge disincentive” for people to live and work in Scotland, adding: “It is embarrassing and telling that so many Scottish Government staff should be paying the rate that applies south of the border to avoid the punitive tax imposed by the SNP.

“While it is entirely understandable that those with valid grounds for doing so – for example, if their family home is in England – should choose to avoid the extra tax imposed by the SNP, it is also a humiliating rebuke to their employer.

“And, after the latest tax hikes in Shona Robison’s disastrous budget, it would be no surprise if more people in the south of Scotland moved house to Berwick or Carlisle – to avoid being clobbered further.”

The figures, she added, “are a portent of the growing behavioural change we can expect in the wider workforce”.

SFC chair Professor Graeme Roy told journalists last month the Scottish Government should undertake work to evaluate the behavioural impact of its tax choices.