Any remaining doubts about how the SNP government views hard-working Scots were decisively shattered by yesterday's budget announcement. Despite the occasion being framed as a pre-election offering, First Minister John Swinney firmly declined to reduce the financial strain on households grappling with escalating costs.
A Stealth Tax Raid on Middle Scotland
Peeling back the political rhetoric reveals a stark picture of what opposition parties label Nationalist contempt. To them, middle-income Scots are treated merely as a cash cow. This perception is fueled by significant spending increases on welfare and international development, while aspirational citizens on modest salaries find themselves pulled into higher income-tax bands.
Scottish Labour leader Anas Sarwar faced immediate criticism for pre-emptively supporting the budget before its details were unveiled. The SNP's control over income tax rates, bands, and thresholds for nearly a decade has resulted in consistently rising bills for Scots. This policy has created a damaging tax gap with the rest of the UK, which business groups argue harms economic competitiveness and deters talent from moving to Scotland.
The consequences extend beyond the private sector. Organisations like the British Medical Association (BMA) and the British Dental Association (BDA) have repeatedly warned that this tax disparity is crippling the NHS's ability to recruit and retain crucial staff like doctors and dentists. Record-high waiting times are exacerbated by these recruitment challenges, as the very professionals needed to solve the crisis face annual tax bills thousands of pounds higher than their counterparts in England.
Frozen Thresholds and Broken Promises
John Swinney defends the punitive policy by stating only those with the 'broadest shoulders' pay more, promising improved public services for all. However, critics argue neither claim withstands scrutiny. By repeatedly freezing the higher-rate threshold, the SNP has dragged hundreds of thousands into the 42% tax bracket through inflation-led wage increases alone.
The latest freeze means anyone earning £43,663 now pays the higher rate. Analysis shows that had the threshold risen with inflation over the past ten years, only those earning over £58,500 would be liable. This represents a major stealth tax, directly impacting nurses, teachers, and police officers.
The SNP has been accused of manipulating the tax system to claim most Scots pay less than in England. While a minority may save a trivial amount—as little as a few pounds annually—those who pay more face dramatically increasing bills as their income grows. The independent Fraser of Allander Institute confirmed that an average Scottish salary has resulted in higher tax payments than in England for the past two years.
Skewed Priorities and Business Backlash
Finance Secretary Shona Robison's budget offered only marginal tweaks, with the maximum annual tax saving for any Scot being a mere £32. The Scottish Conservatives had proposed a substantial tax break, including raising the starter and higher-rate thresholds and cutting the basic rate to 19p for earnings up to £45,000—measures they claim could have saved workers up to £718.
A recent poll indicates most Scots do not believe higher SNP taxes have translated into better public services, a sentiment underscored by crises in the NHS, falling school standards, and under-resourced police forces. Meanwhile, the budget allocated a 25% increase to the international development budget, a policy area reserved to Westminster, drawing accusations of virtue-signalling.
The business community also faces a hostile environment. The SNP's forthcoming revaluation of Non-Domestic Rates (NDR) in April threatens some firms with bill increases of 400% or more, a move described as potentially fatal for the hospitality sector. Despite calls from business leaders and the Scottish Conservatives to pause the revaluation and extend full relief, the budget offered only partial concessions.
With welfare spending projected to hit £9 billion by the decade's end—£1.1 billion above the block grant—critics deem the current trajectory unsustainable. The budget is seen as the product of a failing government with skewed priorities, intensifying calls for change in the upcoming May elections.
