The SNP should change course and consider reducing taxes on Scotland’s workers and businesses, the Scottish Conservatives said today.
At First Minister’s Questions, Scottish Conservative leader Russell Findlay criticised Labour for breaking tax promises and hiking bills by £40 billion in yesterday’s budget.
After years of SNP tax rises, he said Labour had chosen to “hammer workers” and “declare war on business”.
Businesses reacted quickly to Labour’s tax rises yesterday.
The Scottish Hospitality Group said the budget was a “blow to businesses” that will cost their members £160,000 each a year.
Offshore Energies UK said it was a “difficult day” for the North Sea sector.
The National Farmers Union Scotland said the tax changes will cause “huge difficulties” and “hit many family farms, regardless of size or type”.
The Scotch Whisky Association called it a “hammer blow” that would put the tax on each bottle to £12 for the first time ever.
Scottish Conservative leader Russell Findlay said: “Labour increased taxes by £40 billion in their frightening Halloween budget – the biggest tax heist ever.
“Anas Sarwar’s party put up national insurance, whisky duty, inheritance tax, North Sea taxes. They brought in a family farm tax, pensions tax and VAT on independent schools.
“Labour has chosen to hammer workers and to declare war on business.
“It’s not a step in the right direction, as the SNP believe, it’s the wrong move for Scotland’s economy.
“After years of crippling SNP tax rises, Scotland’s workers and businesses need a break.
“The SNP and Labour think they’re entitled to keep taking more and more of people’s money, while Scotland’s public services only ever get worse and worse. This drives the disconnect between people and politicians.
“In the Scottish budget, John Swinney could go another way. The SNP could stop raising taxes and let people keep more of their own hard-earned money.
“The public need a break after years of the SNP swiping their cash.
“John Swinney should change course and look to bring down bills for Scottish workers and businesses, who deserve fairness and justice after years of SNP tax hikes.”
Notes to editors
The Scottish Hospitality Group said the budget will cost hospitality businesses an average of £160,000. Stephen Montgomery, of the Scottish Hospitality Group, said: ‘Today’s announcements are a blow to businesses across the country, but it is particularly concerning for the hospitality industry. It is estimated that the Chancellor’s plans will add 10% to operating costs and could certainly cost jobs. The rise in National Insurance Contributions… will see most of our members paying an additional £160,000 a year and that’s before the 6.7% and 16% increase in the National Minimum Wage is included or the added costs implementing the Employment Rights Bill.’ (Family Businesses United, 30 October 2024, link).
The Scotch Whisky Association condemned the increase in spirits duty as a hammer blow. Mark Kent, chief executive of the SWA, said the move to increase alcohol duty on spirits from February was a ‘hammer blow’ and accused Reeves of increasing ‘tax discrimination of spirits in the Treasury’s warped duty system, and with 70% of UK spirits produced in Scotland, that will do further damage to a key Scottish sector’. (BBC News, 30 October 2024, link).
Offshore Energies UK described the budget as a difficult day for our oil and gas industry. David Whitehouse, of Offshore Energies UK, said: ‘With an increase in tax despite commodity prices at recent lows, there is no hiding that this is a difficult day for the sector. Oil and gas companies, our world class supply chain and our highly skilled people will support the energy transition. We will not be successful without them.’ (Offshore Energies UK, 30 October 2024, link).
NFU Scotland said the changes to inheritance tax will cause huge difficulties to Scottish farmers. An NFU Scotland spokesperson said: ‘It was made crystal clear to the Chancellor by all UK farming unions the significant impact that any changes around taxation will have on our farming sector. She has chosen to ignore that advice. This decision will generate only marginal benefits in filling a financial black hole but causes huge difficulties for some and will act as a barrier to those who wish to get a start in farming. The partial removal of APR and the threat of a considerable tax burden will see larger units being broken up and a major contraction of farmland being made available for tenancies or contracts.’ (NFU Scotland Press Release, 30 October 2024).
This is the biggest ever increase in taxes in one budget. In cash terms, the £40 billion tax rises are the largest ever from one UK budget. (BBC News, 30 October 2024, link).
The Office of Budget Responsibility estimate that most of the increases to National Insurance will be passed on to workers through lower wages. The OBR state: ‘We assume that firms pass on most but not all of their higher tax costs to employees.’ They estimate that amount to be 60% in 2025-26 and 76% from 2026-27 onwards. (Economic and fiscal outlook October 2024, 30 October 2024, link).