A FORMER Scottish Government minister has warned Nicola Sturgeon about raising the basic rate of income tax saying it would hit low-paid workers.

Marco Biagi welcomed the announcement by the First Minister earlier this month that it was time to discuss a “progressive” use of Holyrood’s tax powers.

He urged her to take a broad ranging approach to the issue which could see people on modest wages get a tax cut.

The former local government minister, who stood down in 2015 to pursue academic studies, favoured a stance along the lines taken by the Scottish Greens which back a review of both rates and bands, rather than that backed by Scottish Labour and the Liberal Democrats which want a penny increase on all existing rates.

“I would support the kernel of the [Scottish Greens’] idea that it shouldn’t be a matter of putting the base rate up or down by one It should be about creating new bands and asking people who are able to pay to pay a bit more,” he told The National.

“It may even be possible in creating new bands to create slight reductions for people who are on the low end of the pay spectrum. If there are going to be increases these should definitely look at reforming bands, rather than being a blunt instrument to put up the base rate. If that was the case people earning around £12,000 would also have to pay more, and those are not the people who should be paying more.”

Sturgeon has promised to produce a paper ahead of the Scottish Government budget, in December, which would look at income tax options including those proposed by opposing parties.

The First Minister has previously said she would consider increasing the rate of tax for the highest earners with salaries of £150,000 plus from 45p to 50p, though has so far declined to do so amid fears the wealthy could move their tax affairs south of the Border creating a estimated £30million shortfall to the public purse.

In his interview with The National Biagi also agreed with Pete Wishart, the SNP MP, who suggested the SNP should not be planning for a referendum until after the next Holyrood election, possibly in 2022 or 2023.

He distanced himself on Wishart’s view the SNP should in the meantime put forward new answers to the currency and Border issues. He suggested rather than explicitly campaigning for independence the best way to increase support for it would be for the Scottish Government to concentrate on domestic policy and building a progressive society in Scotland.

“For the independence side the worst perception is that all we are interested in is independence, about changing the flag,” he said.

“The independence side came so close to winning in 2014 as we showed a vision of a different Scotland and convinced many people that independence would help deliver that.

“The more people see it as ‘you always want independence’ the more it hurts us. Sometimes it’s best to let the issue rest and let people rebuild their faith in us.”

He added: “The SNP should be clear on what they want to offer on independence. If, when a referendum on independence happens again that’s the point that if you are making a case on a particular currency position or EU position...that’s the time because it’s then people will be paying attention.”

He continued: “If the party came out with a new currency position now people would start hearing here is a new referendum campaign. My view isn’t that we need to put independence aside, it’s that we best build support by demonstrating our motivations through domestic policy, building trust by being clear this is what the SNP is for. We are for a more progressive, social democratic