THE SNP has accused Treasury ministers of fighting “tooth and nail” to protect huge bonuses for bank staff – while snubbing a call for tax-free payments for NHS workers in Scotland.

First Minister Nicola Sturgeon used her keynote speech to the party’s ­conference last week to announce a £500 payment this year for all full-time health and social care workers to recognise their “extraordinary” service during the pandemic.

But the UK Treasury has rejected a call to exempt the bonus from tax to allow workers to receive the full amount, saying it was up to the ­Scottish Government to increase the payments instead.

However the SNP says this is in stark contrast with the stance taken by Boris Johnson over bankers’ bonuses when he was Mayor of London.

In 2010, he spoke out against the then-Labour government plans for a temporary “super-tax” on bonuses worth more than £25,000, designed to be paid by banks in return for taxpayer support during the financial crisis.

Johnson claimed this would ­result in thousands of bankers leaving ­London and risked damaging the city’s competitiveness and status in the financial world.

In 2013 he also criticised European Union plans to cap bankers’ bonuses, which he said were “deluded” and “self-defeating”.

Meanwhile records show between 2011-13, Treasury Chief Secretary Stephen Barclay, Paymaster ­General Penny Mordaunt and Financial ­Secretary Jesse Norman repeatedly voted against plans for extra taxes on bankers’ bonuses.

This included motions calling for the “super-tax” to be repeated in order to create jobs and build affordable homes, and for a tax on bank bonuses to be used to fund guaranteed jobs for young people out of work for a year.

SNP MSP Tom Arthur said: “Boris Johnson spent eight years as Mayor of London fighting tooth and nail to protect bankers’ eye watering bonuses in the aftermath of a global recession.

“Now, as Prime Minister he isn’t even willing to protect a £500 bonus for Scotland’s health heroes in the middle of a global pandemic.

 “The Tories who run the UK Treasury have consistently voted in favour of protecting bankers’ bonuses – but now they are looking to impose tax on Scotland’s health and care ­workers after their heroic efforts in the fightback against Covid-19.

 “While these wealthy bankers were often pocketing hundreds of thousands on top of their huge salaries, all we’re asking of the UK Tory government is a one time exception so hard-working NHS and care staff can keep their full bonus.”

He added: “These Tories were ­willing to unequivocally support the bankers’ and their wealthy chums in the City. Why can’t they do the same for Scotland’s health workers in their hour of need?”

A Treasury spokesman said: “It is misleading to conflate these two issues as tax and national insurance contributions are due on bankers’ ­bonuses, just as they are on all payments made in connection with ­employment unless explicitly exempt.

“And as we have always said, the Scottish Government has the powers and funding to cover the tax owed on their NHS bonus payment if they wish to do so.”

Announcing the NHS bonus, ­Sturgeon told the SNP conference the Scottish Government does not have the power to make the payment tax-free.

She urged the Prime Minister: “Please allow our health and care ­heroes to keep every penny of ­Scotland’s thank you to them. Do not take any of it away in tax.”

SNP Treasury spokeswoman ­Alison Thewliss challenged Barclay on the payments in the Commons, asking if the UK Government would “do the right thing and ensure this festive gift of goodwill is not clawed back by HMRC?”.

In response he said: “Income tax on these payments is actually paid to Scotland, not to Westminster, and the Scottish Government has the ­power and the funding to gross up the ­payment if it wishes.”

SNP MP Tommy Sheppard argued taxing the payments would mean a “windfall” for the Treasury.

Barclay said: “While decisions to exempt these payments are reserved, the Scottish Government will keep all the income tax receipts from these payments.

“So if they do wish for NHS and care workers to receive £500 net of tax, which is what they say is their wish, then they can simply increase the value of the payments going to them.”

Analysis carried out by the Fraser of Allander Institute suggested that a basic-rate taxpayer getting a £500 bonus would take home just £340 of that bonus after tax and national insurance. If the bonus was exempt from income tax, the basic-rate payer would take home £440.

A similar row broke out in Wales over a £500 coronavirus bonus for social care workers, with the Treasury refusing a request to make it tax-free.