First Minister John Swinney has been accused of offering 'peanuts' to struggling families in a Scottish Budget that fails to address the growing tax gap with the rest of the UK. The Finance Secretary faced a barrage of criticism during a heated session of First Minister's Questions at Holyrood, with opponents branding his tax measures a political stunt.
A 'Miserly' Tax Cut Under the Microscope
The core of the controversy lies in the Budget's limited changes to income tax. The only adjustment was a 7.2% increase in the personal allowance for the basic and intermediate rates. According to analysis from the Chartered Institute of Taxation, this will save Scottish taxpayers a maximum of just £31.75 per year, or 61 pence per week.
Scottish Conservative leader Russell Findlay led the attack, stating the cost of living was hitting people hard and the government had promised help. "So what did he do? Well, he’s cutting income tax – but only for some and by a maximum of £31.75 per year," said Findlay. "That works out at 61 pence a week: that wouldn’t even buy you a bag of peanuts."
Findlay further claimed the move was designed to secure a "cheap and easy headline" by allowing the government to say 55% of Scots would pay less than elsewhere in the UK. He quoted a Scottish Government tax adviser who suggested "it may be the smallest tax cut in history".
Freeze Pushes More Into Higher Tax Bracket
Critics highlighted that the Budget's decision to freeze the higher, advanced, and top rates of income tax will have significant consequences. This freeze means that nearly one million workers, including those on the current median full-time salary, are projected to be pulled into the higher 42p rate within three years due to wage inflation.
Scottish Labour leader Anas Sarwar echoed these concerns, focusing on the impact on public sector workers. "While he brags about his £6 a year tax cut for the lowest paid, one million Scots including nurses, teachers and police officers face being forced to pay more," Sarwar argued. He questioned why Swinney believed someone earning £33,500 had the "broadest shoulders" and should pay more tax in Scotland.
Swinney Defends 'Proud' and Sustainable Plans
In his defence, John Swinney stood firmly by his government's financial plans. He dismissed Tory proposals for larger tax cuts as a "false proposition", arguing they would necessitate £1 billion in cuts to public services.
The First Minister presented contrasting figures for public sector pay, claiming a band six nurse at the bottom of their scale would take home £1,994 more after tax than their counterpart in England, while a qualified teacher would be £6,365 better off.
On the issue of rising benefits spending, which the Conservatives labelled "out of control" and "ruinous", Swinney asserted the approach was sustainable. He stated the funding was part of "costed financial programmes" that delivered for people and was vital for "keeping children out of poverty". Concluding, the First Minister said: "What that is a demonstration of is a Government that is on the side of the people of Scotland and I am proud of the measures we set out in the Budget."
