First Minister John Swinney has been accused of delivering the "smallest tax cut in history" following the unveiling of the Scottish Government's draft budget this week. The SNP leader faced a heated challenge at Holyrood over income tax proposals that will leave some lower earners with just 61 pence more per week.
Tory Leader Brands Tax Cut 'Miserly and Insulting'
During First Minister's Questions on Thursday, Scottish Conservative leader Russell Findlay launched a scathing attack on the budget's provisions. He highlighted that by raising the thresholds for the basic and intermediate income tax bands, the government was offering a maximum annual benefit of £31.75 to workers.
"That wouldn't even buy you a bag of peanuts," Mr Findlay stated, branding the reduction "miserly" and "insulting." He revealed that a Scottish Government tax adviser had suggested the measure could be "the smallest tax cut in history."
The Tory leader demanded to know if Mr Swinney genuinely believed such a minimal cut would assist Scotland's struggling households. He accused the SNP administration of simultaneously increasing taxes on higher earners through a freeze on higher thresholds, which will pull more people into elevated tax brackets.
"The Scottish Conservatives will not back and cannot back a Budget that does nothing to help Scotland's workers and businesses," Findlay declared. "It hammers people with higher taxes to fund a bloated benefits system." He also criticised Labour for indicating they would not block the budget's passage.
Swinney Defends Budget as Being 'On the Side' of Scots
In his defence, John Swinney insisted the budget "delivers on the priorities of the people of Scotland" by bolstering the NHS and providing cost-of-living support. He argued that the income tax decisions meant 55% of Scottish taxpayers would pay less in 2026-27 than their counterparts in England.
"What that is a demonstration of is a Government that is on the side of the people of Scotland," the First Minister asserted, expressing pride in the budget's measures. He highlighted that benefits funding was crucial for "keeping children out of poverty."
Mr Swinney also turned his fire on the Conservatives, claiming their proposed tax cuts would cost £1 billion and lacked any detail on how they would be funded.
Labour Joins Criticism, Citing Lack of Ambition
The First Minister also faced questions from Scottish Labour leader Anas Sarwar, who argued the budget "lacks ambition for Scotland." Sarwar pointed out that while the SNP boasted about a minimal tax cut for the lowest paid, around one million Scots, including many public sector workers, faced paying more.
"Even his own tax adviser says this is a political stunt," Sarwar charged, questioning why someone earning £33,500 was deemed to have "the broadest shoulders."
In response, Swinney presented comparative figures, stating a band six nurse at the bottom of their scale would take home £1,994 more after tax in Scotland than in England, and a qualified teacher would be £6,365 better off. "There are the facts for Mr Sarwar," he concluded.
The political clash, occurring less than 48 hours after the budget's publication and just months before the Holyrood elections in May, sets the stage for a fierce debate over Scotland's fiscal future and economic direction.
