NICOLA Sturgeon is to publish her proposals on income tax reform tomorrow as part of a cross-party debate ahead of the 2018/19 budget.
As part of efforts to reach consensus on a more progressive tax system, the First Minister will unveil a “discussion paper” at an event in Edinburgh.
It follows an appeal by her for contributions from other parties on paying for public services. T he Greens, LibDems and the two contenders for the Scottish Labour leadership, Anas Sarwar and Richard Leonard, are understood to have responded. They support reforming the current system to raise more money for the NHS, education and other services.
The Scottish Tories are the only party wanting income tax rates to be the same or lower in Scotland than in the rest of the UK. The contributions have been costed by civil servants to show how much each proposal would raise and on which taxpayers the burden would fall.
The paper’s aim is to generate debate ahead of the UK and draft Scottish budgets this month and next. Wages in Scotland are currently taxed at 20p in the pound above £11,500, at 40p above £43,000 and at 45p above £150,000.
The SNP promised in its 2016 Holyrood manifesto to freeze the basic 20p rate throughout the parliament, but the First Minister has since said all rates could change. Adding 1p to each rate would raise an extra £500 million a year. The Scottish Greens initially proposed five bands with a top rate of 60p, but co-convener Patrick Harvie has since said the party is flexible.
Sarwar has written to Sturgeon asking her to consider his plan to raise an extra £700m for services by having five bands and a top rate of 50p above £100,000.
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