Scots face the threat of more tax pain after a senior SNP minister refused to rule out being forced into further hikes by the Scottish Greens. Housing Secretary Mairi McAllan failed to rule out asking some Scots to pay more if such measures are demanded by the Greens in return for supporting legislation or budgets.
Background to the Threat
This follows John Swinney's statement that he is prepared to work with any party other than Reform UK after he failed to secure a majority in last week's Holyrood election. The Scottish Greens, led by Ross Greer and Gillian Mackay, could be in a hugely influential position after securing 15 seats in the election, while the SNP fell seven MSPs short of a majority.
Green Tax Proposals
In its manifesto, the Scottish Greens proposed a huge range of tax rises for families and businesses. These include an overhaul of council tax, a 'mansion tax' on properties worth £1 million or more, a new public health levy on supermarkets and large retailers selling alcohol and tobacco, and new surcharges for 'those whose activities cause environmental, economic and social harms'.
Analysis by the Institute for Fiscal Studies (IFS) found that the bill for a current band D property valued at £211,000 could soar from £1,653 a year to £2,110, while a band F home valued at £392,000 would see its annual bill rise from £2,686 to £3,920. The proposed 'mansion tax' would introduce an eye-watering 15 per cent rate of land and buildings transaction tax on properties worth more than £1 million.
McAllan's Comments
Ms McAllan highlighted only that the SNP manifesto had proposed no further hikes in rates and bands for income tax in the next five years. Asked on the BBC's The Sunday Show whether the SNP would resist if the Greens demand that 'people should be paying more' in return for support to get legislation through, Ms McAllan said: 'Well, when it comes to tax, it's worth saying that we have very unashamedly taken a progressive approach to taxation in Scotland, where we have asked those who can pay a little more to do so, but people understand that they get more back for that investment in Scotland, not least with our children going to university for free and with free prescriptions and other policies.'
She added: 'We have committed to freeze both bands and rates in the years to come but when it comes to co-operation with other parties we have great experience of running minority governments and John Swinney was just setting out yesterday his intention to speak with all party leaders – with the exception of Reform.'
Conservative Criticism
Scottish Conservative finance spokesman Craig Hoy said: 'Mairi McAllan's comments will alarm hard-working Scots who are already forced to pay the highest taxes anywhere in the UK under the SNP. The Nationalists are refusing to rule out even more tax rises which will only fund their ballooning benefits bill and is their only answer to plug the multi-billion-pound black hole they've created in Scotland's finances.'
He continued: 'Scots remember all too well the damage caused when the Greens previously were in government with the SNP — higher taxes, anti-business policies and economic vandalism. John Swinney spent the election campaign refusing to rule out another grubby deal with the Greens because their support for independence matters more to the SNP than any other issue. Only the Scottish Conservatives are standing up for lower taxes, economic growth and common sense.'
Current Tax Burden
Everyone earning more than £33,493 pays more income tax in Scotland than they would in other parts of the UK because of decisions made by SNP ministers. Those on a salary of £45,000 pay £396 more, rising to £1,496 at £50,000, £2,050 at £75,000, £3,300 at £100,000, £10,431 at £300,000 and £31,431 at £1 million. Divergence has also been introduced by the SNP government on property taxation through its land and buildings transaction tax, which replaced stamp duty.
Swinney's Stance
At the weekend, Mr Swinney said he would invite the Greens to talks with him in the coming week, as well as the other Holyrood leaders. However, he said he would have no talks with Nigel Farage's Reform Party, despite it now being the joint second largest party at Holyrood with 17 MSPs in regions across the country. The SNP leader said: 'I recognise the need to work collaboratively. As we've demonstrated on different issues, we've had good co-operation with members of the Green Party. We've had co-operation with Liberals on some of our budget provisions. We've even had good co-operation with members of the Conservative and Labour Parties on different policy issues. It's not beyond the bounds of possibility for politicians to work together. I shall give it my level best.'
