John Swinney has been told he must finally “ease the pain” on Scottish households and businesses by cutting their bills in next week’s budget.
The Scottish Conservatives will lead two parliamentary debates on the topic today (Wednesday) – the first focused on the need for income tax cuts for workers, the second calling on the SNP to pause the non-domestic rates revaluation which threatens to cripple Scottish firms.
Shadow finance secretary Craig Hoy will echo leader Russell Findlay by calling for the SNP to increase the thresholds at which Scots start paying income tax – and start paying the higher rate – in line with inflation to bring down bills.
He will also demand a reduction in the income tax rate, to 19 per cent, to help lower and middle-income earners.
Shadow business secretary Murdo Fraser will lead a second debate calling on the Nationalists to drop plans for rates rises which many, especially in the hospitality and self-catering sectors, warn will put them out of business.
He insists that the proposals, which the Scottish Conservatives have launched a campaign against, would devastate firms already reeling from Labour’s national insurance hikes and years of the SNP refusing to pass on rates relief available to businesses south of the border.
Scottish Conservative shadow finance secretary Craig Hoy said: “It’s time for John Swinney to finally ease the pain he’s inflicted on Scottish households.
“Hard-working Scots are continually being asked to pay more in the midst of a cost-of-living crisis.
“It’s unsustainable and unfair. In the budget, his government must increase income tax thresholds in line with inflation to end the SNP’s stealth tax rises and cut bills for lower and middle earners.
“The SNP can’t keep hammering hard-working Scots to pay for ever-spiralling welfare bills.
“Enough is enough – workers need to keep more of their money to generate the economic growth required to fund our essential services.”
Scottish Conservative shadow business secretary Murdo Fraser said: “The SNP must realise that their planned rate rises will sound the death knell for businesses up and down Scotland if it goes ahead.
“Businesses cannot absorb increases of 300 per cent in their rates bills. Ministers must announce an immediate pause and go back to the drawing board.
“This threatens to kill countless pubs, restaurants and hotels – and the jobs that go with them.
“Scottish businesses have already been hammered by the SNP’s failure to pass on business rates relief and Labour’s crippling national insurance increase.
“Firms are pleading with ministers to think again before it’s too late – and the Scottish Conservatives stand shoulder to shoulder with them.”
Notes to editors
Motion for debate one: Lowering Bills for Scottish Workers
That the Parliament calls on the Scottish Government to reduce income tax on working people in Scotland; commits to uprating income tax thresholds in line with inflation in the forthcoming Scottish Budget and in future Scottish Budgets; further commits to removing the Scottish basic rate and intermediate rate of income tax and replacing them with a single Scottish income tax rate of 19 pence on income up to the higher rate threshold, and believes that these fairer measures would begin to reduce the tax differential with the rest of the United Kingdom, put more money into the pockets of working families, and support economic growth by addressing the cumulative effects of current income tax policy.
Motion for debate two: Stopping the Scottish Government’s Business Tax Increases
That the Parliament recognises that businesses across Scotland are facing an acute and worsening cost crisis, driven by inflation, energy prices, wage pressures, supply chain disruption and weak economic growth; notes with serious concern the scale of proposed increases in rateable values arising from the 2026 non-domestic rates revaluation, particularly in the hospitality and self-catering sectors; believes that sharp and unaffordable increases in non-domestic rates now pose an existential threat to business viability, employment, investment and local economic resilience in many parts of Scotland; notes the growing divergence between Scotland’s non-domestic rates regime and those operating elsewhere in the United Kingdom, and the competitive disadvantage that this risks creating for Scottish firms; understands that, since 2022-23, the Scottish Government has failed to pass on at least £700 million in business rates relief received through the block grant; calls on the Scottish Government to act urgently to provide certainty and stability by pausing the implementation of the 2026 revaluation, introducing meaningful transitional protections against excessive bill increases, and matching reductions in bills for the retail, hospitality and leisure sectors in England, and affirms that a strong and thriving business base is essential to Scotland’s economic recovery, public finances and communities, and that the tax system should support growth rather than accelerate decline.
The Scottish Conservatives’ campaign to Stop the Business Tax Hikes can be seen here: https://www.scottishconservatives.com/news/stop-business-tax-hikes/