The average Scottish worker pays more in income tax than they would in the rest of the UK, analysis of the latest data confirms.
While last year’s SNP budget ensured that anyone earning above £27,850 per year pays more income tax than someone on the same salary south of the border, recent stats show the median annual salary in Scotland is now £29,675.
It means that John Swinney’s claim 12 months ago that “the majority of people in Scotland will still pay less in taxation” simply doesn’t stack up.
Scottish Conservative shadow finance secretary Liz Smith says that on top of a “damaging and ever-widening tax gap” between Scotland and the rest of the UK further up the income scale, “even average earners are suffering under the SNP”.
Scottish Conservative shadow finance secretary Liz Smith MSP said: “The stats don’t lie: John Swinney’s claim a year ago that the majority of Scots pay less income tax under the SNP is simply bogus.
“The reality is the point at which workers in Scotland pay more tax than they would in England is almost £2,000 below the median annual wage.
“For years, the SNP have tried to justify the damaging and ever-widening tax gap with the rest of the UK on the grounds that those on average earnings were paying less – albeit by a miniscule amount. Now even that claim doesn’t stack up.
“To make matters worse, media reports are rife that Shona Robison is set to announce new income tax rises in next week’s budget, which would further clobber hard-working Scots.
“The SNP must heed the warnings of how damaging this would be for workers, businesses and Scotland’s competitiveness. At the same time, it would – as the Fraser of Allander Institute point out – make a negligible contribution to filling the SNP’s financial black hole.”
Notes
The median salary in Scotland in 2023 is just shy of £30,000. The Office for National Statistics’ earnings dataset for 2023 confirms that in Scotland, the median annual gross salary for all employees was £29,675, an increase of 6.4% compared to the year before. (Earnings and hours worked, UK region by public and private sector 2023 edition, 1 November 2023, link).
In Scotland, everyone earning more than £27,850 pays more in income tax. Due to the different income tax regime created by the SNP Government, everyone earning £27,850 pays a higher income tax rate than they would have compared to if they were domiciled elsewhere in the UK. (Scottish Income Tax Fact Sheet, 15 December 2022, link).
This means the majority of Scottish taxpayers now pay more tax in Scotland. Under the Scottish Income Tax regime, the median taxpayer will pay approximately £3,438.65 in 2023-24. This compares to the roughly £3,420.8 that the median earner would pay if they were domiciled in the rest of the UK, meaning a difference of around £18 per year. (Scottish Income Tax Fact Sheet, 15 December 2022, link; Income tax rates and personal allowances, Accessed 15 December 2023, link).
John Swinney claimed that the majority of Scots would pay less in income tax for the 2023-24 financial year. Introducing the 2023-24 budget to Holyrood, Swinney said: ‘The majority of people in Scotland will still pay less in taxation than if they lived in the rest of the United Kingdom.’ (Official Report, 15 December 2022, link).