The Scottish Conservatives say that SNP tax hikes in this week’s budget will damage Scotland’s economy and public services.
At First Minister’s Questions, Douglas Ross said workers and businesses are suffering under “high tax” Humza Yousaf.
Under the SNP, everyone in Scotland earning over £28,850 will pay more tax than workers south of the border.
In total, 1.5 million Scots will pay more than people doing the same job elsewhere in the UK.
Iain Kennedy, the chairman of the British Medical Association Scotland, said today: “One of the unintended consequences of this measure may push more of these doctors out of the NHS to jobs elsewhere or retirement.”
The Scottish Hospitality Group said this week that “many Scottish hospitality businesses will struggle to survive, and customers will see prices increase” because of this.
The Scottish Grocers’ Federation said “it beggars belief that the Scottish Government has once again failed to pass on the 75% relief for retail, seen elsewhere in the UK”.
Scottish Conservative Leader Douglas Ross said: “It’s deeply unfair that a majority of Scottish taxpayers will pay more than people south of the border who earn the same wage.
“These SNP tax rises on Scottish workers and businesses not getting support available elsewhere in the UK will damage our economy.
“Humza Yousaf is risking the possibility that highly skilled, valuable workers will be forced out of Scotland. We could lose those nurses, doctors and specialist NHS staff for good.
“The SNP are hiking tax and cutting spending, despite receiving the highest-ever level of funding from the UK Government.
“As a consequence of SNP decisions, Scottish shops, pubs and hotels won’t get the same rates relief given to businesses south of the border.
“The SNP are putting Scottish businesses at a disadvantage.
“Humza Yousaf is making hardworking Scots pick up the bill for his mistakes. He’s driving key NHS staff away. He's making Scottish businesses pay more than companies across the UK. His decisions mean 1.5 million Scots will pay more than people south of the border.
“Is this all Scotland can expect from High Tax Humza?”
Notes
Using ONS data, the median annual salary for employees in Scotland is expected to be £30,654 in 2024-25. The Office for National Statistics’ survey of earnings and hours worked for 2023 states that the median salary in Scotland is £29,675. Using the Office for Budget Responsibility’s expected average earnings growth of 3.3%, this means in 2024 the expected median salary will be £30,654.28. (Earnings and hours worked, UK region by public and private sector 2023 edition, 1 November 2023, link; Economic and fiscal outlook November 2023, 22 November 2023, link).
Even if factoring in the self-employment incomes, the median salary in Scotland would be £29,568.11 next year – above the £28,867 crossover. HMRC data for 2020-21 states that the median self-employment income in Scotland was £15,600. Adjusting this figure for wage inflation produces an expected figure of £19,338.13. Given that around one in 10 employees are self-employed in Scotland, a weighted average of annual median salaries in Scotland produces a figure of £29,568.11, above the £28,867 crossover at which people in Scotland start paying more in income tax. (HMRC income and tax by country and region, 8 March 2023, link; Economic and fiscal outlook November 2023, 22 November 2023, link; Chartered Institute of Taxation, 19 December 2023, link).