CHANGES to income tax in Scotland will raise around £11.7 billion in 2019/20, while protecting low and middle income earners, the Finance Secretary has claimed.
Speaking ahead of a vote in the Scottish Parliament on Tuesday to set rates and bands for Scottish income tax, Finance Secretary Derek Mackay insisted tax plans outlined in the Scottish Budget will raise vital revenue to support investment in public services.
“Our decisions have resulted in a more progressive tax system, protecting those lower and middle income taxpayers, while raising additional revenue to invest in our public services and the Scottish economy,” he said. “Our policies on tax make Scotland an attractive place to live, work and invest.”
He said the Scottish Budget proposed an additional £2bn of investment – an increase of almost £730 million for health and care services, more than £180m towards raising school standards and a £5bn infrastructure programme.
A final vote on the Scottish Budget 2019/20 – for which the SNP managed to secure support from the Scottish Greens – will be held on Thursday.
Labour’s finance spokesman James Kelly last month called for Mackay to go “back to the drawing board” with budget plans claiming it gave a tax cut to high earners while cutting funding for local services.
However the Scottish Government claims proposals mean 55% of taxpayers will pay less income tax next year than if they lived elsewhere in the UK and 99% will pay less income tax than they do this year on their current income.
Freezing the higher rate threshold of £43,430 is forecast to deliver an extra £68m.
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