Anas Sarwar urged to 'come clean' on tax changes in Scotland

The National

14 hours ago

The SNP have written to the Scottish Labour leader over comments he made last week signalling his party would seek to bring Scotland's income tax system closer in line with the rest of the UK.
In an interview with the Scottish Sun, Sarwar accused SNP ministers of "government by performance" as he suggested he would move to end the tax divergence with the rest of the UK if he becomes first minister.
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Currently, a majority of Scottish taxpayers pay less income tax than they would elsewhere in the UK.
In Scotland, the top rate of tax (45%) comes in at earnings of £75,001, while those reaching £125,140 face a 48% levy.
In the rest of the UK, the top rate of tax is 45% and only comes in when earnings reach £125,140.
Figures from the Scottish Fiscal Commission suggest that Scotland's tax system generates up to an additional £1.7 billion each year compared to if it had matched the UK Government's policy.
The SNP said Labour's plan would risk reversing this additional income and would mean that lower-income Scots would pay more while the wealthiest pay less, resulting in "billions of pounds worth of cuts" from public services to plug the gap.
Kevin Stewart MSP (Image: PA) Kevin Stewart, an SNP MSP who sits on Holyrood's Economy Committee, has written to Sarwar to urge him to outline what services he would cut in order to "balance the books".
In his letter, he asked Sarwar to clarify his position that those on "very large salaries" should pay less tax, "while also supporting disability benefits cuts".
Stewart wrote: 'As you know, a majority of Scots currently pay less income tax than they would if they lived elsewhere in the UK, and Scottish income tax generates well over a billion pounds additional funding to be spent here in Scotland.
'Any changes to the Scottish income tax system puts this at risk – meaning Labour's plans could see the poorest being taxed more, or cutting up to well over a billion pounds from Scottish public services in order to fund these tax cuts.
'Is it really your position that people on very large salaries should pay less income tax in Scotland, while also supporting cuts to disability benefits?
'I am therefore writing to you to ask what spending cuts Labour plan to implement in Scotland in order to bring Scotland's income tax system more in line with the rest of the UK.'
Scottish Labour leader Anas Sarwar (right) pictured with Prime Minister Keir Starmer (Image: Jane Barlow/PA) Sarwar previously backed the UK Government's decision to cut disability benefits, before Labour conceded to rebels and watered down such plans in a last-minute climbdown.
Commenting, Stewart told The National that since Labour took office last year, "they have made it their business to balance the books on the backs of the poor, disabled and older people".
'For a Labour politician to claim there is no money to pay for disability benefits while also arguing that very rich people are being taxed too much frankly beggars belief – and shows how out of touch Mr Sarwar is with traditional Labour voters," he said.
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'Mr Sarwar needs to come clean with people in Scotland – if Labour are in power in Scotland, what services would he cut to fund tax cuts for the rich? Will it be free tuition, prescriptions, childcare, bus passes, the baby box – or will he cut ADP [Adult Disability Payment] – Scotland's equivalent of PIP [Personal Independence Payment] - just like his bosses in London wanted to?"
Stewart continued: 'The SNP are proud to have introduced progressive taxation in Scotland which ensures those on lower incomes pay a bit less while people on higher incomes pay more – and everybody benefits from the extra investment in public services.
'The truth is, Scottish Labour just want to bring Scotland in line with the rest of the UK regardless of the cost to the Scottish people – only the SNP can be trusted to stand up for a fairer Scotland that the vast majority of people want to live in.'
Stewart's comments came as Scottish Government Finance Secretary Shona Robison urged Starmer to look north of the Border for a more progressive tax system to protect public spending.
(Image: PA) Robison said that if Labour had followed the Scottish model, they would not be in the "complete fiscal mess that they are in now".
She said: 'When Keir Starmer took office, he could have chosen to ask people on higher incomes to pay a little more in tax in order to protect public spending.
'Choosing instead to target the vulnerable is not leadership – frankly, it is political cowardice.
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'If Keir Starmer had done in England what the SNP have done in Scotland with taxation, Labour would not be in the complete fiscal mess that they are in now."
Robison added that Labour need "a new direction – and they should look to Scotland".
She continued: 'Labour used to tell Scotland that we didn't need independence and we just needed to get rid of the Tory government – but the last year has completely demolished that argument.
'No Westminster government will ever deliver the truly fair society which I believe the vast majority of people in Scotland want to live in – and that is why independence is the best future for Scotland.'
Scottish Labour's spokesperson for economy, business and fair work, Daniel Johnson MSP, said: "Unlike the SNP, Scottish Labour won't use higher taxes on workers like nurses and firefighters as a substitute for economic growth.
'A Scottish Labour government will grow our economy, end the SNP's addiction to wasting our money and reform our public services so they are fit for the future.
'Next year Scots have the chance to kick out an SNP Government that can't be trusted with our money and take a new direction with Scottish Labour.'