‘Wait and see’ if Reeves ups income tax but I will cut it in Scotland – Sarwar

The leader of Labour in Scotland has refused to say whether Rachel Reeves will break the party’s manifesto commitment not to raise taxes.

Anas Sarwar said taxpayers will have to “wait and see” what is in the Chancellor’s Budget on November 26.

Earlier on Tuesday, Ms Reeves signalled she could hike taxes later this month, saying “each of us must do our bit”.

She declined to recommit to Labour’s manifesto commitments not to raise income tax, national insurance or VAT, saying “we will all have to contribute”.

Asked if he can guarantee Labour will not break its manifesto pledges, Mr Sarwar told the PA news agency: “Let’s wait and see what’s in the Budget in a few weeks’ time.

“She is the UK Chancellor that’s responsible for income tax in England and Wales.

“Income tax in Scotland is the responsibility of the Scottish Government, and actually the only person that’s been campaigning loudly for the last two years for a rise in income tax in England and Wales is John Swinney, and he’s the very same man negotiating the fiscal framework.”

Mr Sarwar dismissed what he said was “speculation” about the Chancellor’s Budget.

The Fraser of Allander Institute has estimated a 2p rise in UK income tax could cut Holyrood’s budget by £1 billion. Income tax in Scotland is currently higher for middle and higher earners compared to those living in England.

Mr Sarwar said taxes are “too high” in Scotland and he is “clear” Scottish Labour will bring down the tax burden if the party wins next year’s Scottish election.

Amid declining poll numbers, one of which suggested Reform UK has overtaken Labour as the likely opposition in Scotland next year, Mr Sarwar insisted his party is in a “fantastic position”.

Asked about the impact the UK Government has had on Labour’s prospects north of the border, he said: “Rachel Reeves is not standing to be first minister, Keir Starmer is not standing to be first minister.

“I’m standing to be first minister, and it’s me against John Swinney – that’s the choice people have in the election in six months.”

Mr Sarwar denied distancing himself from the UK Labour Party.

He said Scots face a third decade with the SNP in power “destroying” the NHS, schools and housing market, “or we take a different approach with a Scottish Labour government and me as first minister”, adding: “That’s a campaign I relish.”

On Tuesday morning, Ms Reeves took the unusual step of delivering a speech three weeks ahead of her Budget to prepare the ground for the expected tax increases she will announce.

She blamed global problems including the tariff war triggered by US President Donald Trump and domestic issues including the budget watchdog’s expected downgrade of economic productivity for the “hard choices” she will make.

Responding to her speech, Scotland’s Finance Secretary requested “urgent engagement” with the UK Government on the Budget. The Scottish budget has been pushed back a month to January following the timing of the UK Budget.

Shona Robison said: “We are calling on the UK Government’s autumn Budget to deliver more funding for those public services, infrastructure, and cost-of-living support – including by abolishing the two-child limit in universal credit.

“Scotland has been short-changed in the past and we must not be left as an afterthought in the UK Government’s Budget.

“Under the current arrangements Scotland has to wait and see what impact the Chancellor’s decisions will have for us.

“Fundamentally, its only with the powers of independence that we can fully support our public services and deliver a stronger economy that works for everyone.”