The SNP have today been accused of “blatantly misleading the public” in the run-up to tomorrow’s budget with two “simply untrue claims”.
Scottish Conservative MSP Murdo Fraser has written to the Permanent Secretary over a Scottish Government tweet which claims, wrongly, that they received just £10.8million in extra funding from the UK Government as a result of the Chancellor’s autumn statement.
The shadow business secretary points out that SNP ministers have full autonomy on how they allocate the additional funds received as a result of increased UK Government spending and that “this lie should not be propagated on a supposedly impartial Scottish Government platform”.
His colleague, shadow finance secretary Liz Smith, meanwhile, has asked opposite number Shona Robison to correct her claim in a media interview that the average Scot pays less tax than they would in England – something which has been shown to be demonstrably untrue.
Analysis by the Scottish Conservatives, which formed the basis of a weekend press release by the party, shows that the median annual salary in Scotland is now £29,675, while anyone earning more than £27,850 pays more in income tax than they would south of the border.
Scottish Conservative shadow secretary for business, economic growth and tourism Murdo Fraser MSP said: “The SNP – and more especially the Scottish Government – have to stop blatantly misleading the public.
“As Shona Robison herself admitted just five days ago, it is up to Scottish ministers how they allocate the £545million in Barnett Consequentials – £223m this year and £320m next year – stemming from the Chancellor’s autumn statement.
“This tweet would be dodgy spin coming from the SNP – but for a simply untrue claim to be made on a Scottish Government platform, run by supposedly impartial servants, is simply unacceptable. That is why I have written to the Permanent Secretary."
Scottish Conservative shadow secretary for finance and local government Liz Smith MSP said: “Shona Robison can’t get away with making claims that are demonstrably untrue.
“The median annual Scottish salary is almost £2000 above the threshold at which Scots workers pay more tax than they would south of the border, so it is factually wrong of the finance secretary to claim the majority of Scots pay less.
“She needs to correct this inaccurate claim immediately.
“If we’re getting the SNP smoke and mirrors routine ahead of the budget, who knows how much sleight of hand and deception we’ll get in her actual budget statement tomorrow?
“When it comes to taxation policy, Shona Robison seems as unaware of the Laffer curve as her predecessor Derek Mackay. The SNP seem desperate to keep on raising taxes despite the diminishing revenue returns this will provide.”
Notes
The Scottish Government tweet claims: “In the UK Government's Autumn Statement, only £10.8 million of extra funding was provided for NHS Scotland for the next year, a real-terms cut.” (link)
The Scottish Parliament’s Information Centre said that the Autumn Statement delivered £320 million for next year’s budget and Shona Robison recently admitted the Scottish Government gets to choose how they are spent. SPICe wrote on their Autumn Statement 2023 blog: ‘The Autumn Statement allocates around £545 million Barnett consequentials to the Scottish budget. £223.1 million is added to the current year’s (2023-24) spending envelope and £320.6 million for 2024-25.’ Shona Robison recently admitted in a written parliamentary question answer: ‘All Barnett consequentials received as a result of the Autumn Statement are considered as a whole ahead of the Scottish Budget each year and are a vital part of Scottish Government’s funding position.’ (SPICe, 23 November 2023, link; Written Parliamentary Question Answer S6W-23346, 13 December 2023, link).
A copy of Murdo Fraser’s letter to the Permanent Secretary is attached.
Shona Robison claimed that “a majority in Scotland still pay less tax”. In an interview on Reporting Scotland on Friday, the finance secretary said: “Overall analysis of the position on tax is a majority in Scotland still pay less tax than they would if they lived elsewhere in the UK, but we do believe in the principle of those with the broader shoulders should pay a bit more.”
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).