Scottish Tories propose scrapping two income tax rates

The Scottish Tories have proposed scrapping two income tax rates in the upcoming Scottish budget.

The Government will publish its tax and spending plans on December 4 and is meeting with opposition parties in the hopes of securing the necessary votes to pass the budget in the new year.

In a letter to First Minister John Swinney, Scottish Tory leader Russell Findlay has pushed for him to scrap the 20p and 21p rate of income tax.

Such a move would see those earning between £12,571 and £43,663 paying the starter rate of 19p, before tax jumps to 42% above that level and represent a £222 cut to for the average taxpayer, the Tories claimed.

It is believed the cut would cost £583 million, with Mr Findlay telling the First Minister cost savings could be found by scrapping the National Care Service, the baby box and Government offices abroad, along with not increasing the social security bill or sending aid to schools abroad.

The Tory proposals – which are unlikely to be accepted by the Government – also call for 40% rates relief for leisure, tourism and hospitality businesses, while restaurants and pubs would receive 100%.

Land and buildings transaction tax (LBTT) – the Scottish version of stamp duty – would also only be charge on home sales over £250,000, under the Tory plans, up from the current £145,001 threshold.

Taken together, the proposals would cost between £936-£984 million, the party said.

Mr Findlay said: “Our common sense tax plan would cut bills for workers, businesses and would-be homeowners.

“We would start to undo the damage of SNP tax rises by reducing income tax, business rates and LBTT.

“The SNP, Labour and other left-wing parties in the Scottish Parliament are unlikely to support it because they seem to think they can keep taking so much of taxpayers’ money while giving so little in return.

“Our common sense plan is an alternative approach to what Holyrood usually comes up with.

“This plan is bold and ambitious.

“It would provide families and businesses with more freedom and control over the money they work so hard to earn.

“We believe it will be backed by aspirational workers and businesses across Scotland, even if it’s not supported by the SNP.”

A spokesman for Finance Secretary Shona Robison, however, said the proposals “make no sense”.

“Scotland has the fairest tax system in the UK – the majority of taxpayers in Scotland pay less tax than they would elsewhere.

“These measures allow Scotland to have the most comprehensive social contract in the UK – including free prescriptions and free university education.

“The Tories’ plans would see millions of pounds wiped from the government’s spending resources – impacting hospitals, schools and local services.

“At a time when we need to be investing in public services – these proposals make no sense.”