Swinney: Tax decisions do receive independent scrutiny despite expert’s claims

Scottish Government tax decisions receive “independent scrutiny”, John Swinney has said, despite the claims of a prominent expert.

Dan Neidle, the founder of Tax Policy Associates and a former member of the now defunct Scottish Government tax advisory group, told the Holyrood Sources podcast the panel was not consulted on the decision to increase the top rate in Scotland to 48p in the pound.

The decision was made by Humza Yousaf and came into force two months before Mr Swinney took office.

A Tax Policy Associates analysis also found that the change actually cost Scotland £22 million as a result of high earners changing their behaviour.

But speaking to the Press Association on Thursday, the First Minister said the Government submits all of its budget to the Scottish Fiscal Commission (SFC).

“There is absolutely independent scrutiny of all of the tax decisions that the Government takes,” he said.

“Now, we obviously will look at all of this material as we consider our tax stance, as the Government always will do, to make sure that we’re taking the most appropriate decisions on tax.”

He added: “The Government obviously reviews its tax decisions at every particular budget and we’ll look at all of the analysis.

“We obviously take advice from an assessment of our proposals from the Scottish Fiscal Commission, who are our statutory advisers on all issues in relation to tax.”

Mr Swinney, who served for nine years as the country’s finance secretary, signalled his drive to “simplify” Scotland’s tax regime during May’s election, which could result in the a merging of two or more of the country’s three lowest income tax rates of 19%, 20% and 21%.

However, Government minister and officials are often reticent to discuss tax matters ahead of the usual, draft budget announcement each December.