Sunak calling tax rises ‘disappointment’ is a bit of cheek, says Robison

Scotland’s Deputy First Minister has hit back at Rishi Sunak, after the Prime Minister said the prospect of further income tax rises in Scotland was “very disappointing”.

Shona Robison, who is also Scottish Finance Secretary, however, responded by saying Mr Sunak had a “bit of a cheek” to make such remarks, accusing Westminster of putting electioneering ahead of public services in its recent autumn statement.

Her comments came ahead of Tuesday’s draft Scottish budget, where Ms Robison will outline the Government’s tax and spending plans for 2024-25.

While calls have being made from some parts for a new income tax band to be introduced in Scotland for higher earners with an oncome of £75,000 a year or more, Ms Robison refused to say what the tax strategy north of the border would be ahead of the Budget statement.

It's already the highest taxed part of the UK and obviously it would be very disappointing to see that tax burden continue to rise in Scotland

But despite saying it had been “tough budget” to draw up, she insisted the Scottish Government had focused on public services.

“What we have done in those tough choices we have is to prioritise investment in public services.

“That is something the UK Government has not done.

“Our values, first and foremost, are about making sure we sustain our public services.”

Speaking during a visit to a community cafe in Broxburn, West Lothian, she insisted the Scottish Government could not have followed the “real terms cut” in spending that the Tories had imposed on the NHS in England.

The autumn statement only provided an additional £10.8 million for the NHS In Scotland next year, Ms Robison said.

Meanwhile, she said the cut in national insurance payments for workers from that statement was “pre-election positioning by the Tories, entirely at the expense of public services”.

Insisting that “these are not our values or our priorities”, the Deputy First Minister added: “What I would say to Rishi Sunak is he has got a bit of a cheek, pitching up in Scotland to say anything given his autumn statement is deprioritising public spending.

“To have a real terms cut to the NHS in England is an astonishing position at a time when services are still recovering from Covid.

“Clearly that’s not something we can follow and wouldn’t want to follow.”

Mr Sunak, however, said his Government had provided a “record amount of funding” to ministers at Holyrood, adding that the Tories were “controlling spending and cutting people’s taxes” and that further tax rises in Scotland would be “very disappointing”.

Speaking to journalists during a visit to RAF Lossiemouth in Moray on Monday, the Prime Minister stressed: “The UK Government has provided a record amount of funding to the Scottish Government through the Barnett formula, so they’re ultimately responsible for the finances here in Scotland.

“But I can tell you what we’re doing in the UK is controlling spending and cutting people’s taxes and that’s going to kick in for everyone in Scotland and across the UK, a reduction in the rate of national insurance from 12% to 10% from January.

“That will save a typical person in work around £450 – it’s a significant tax cut.

“So, that’s what the UK Government is doing to help Scottish families with the cost of living, which we know is a priority for them.

“But ultimately, it’s the Scottish Government that are responsible for their own finances – it’s already the highest taxed part of the UK and obviously it would be very disappointing to see that tax burden continue to rise in Scotland.”

Scottish Tories claimed that changes in the income tax system already meant the majority of taxpayers in Scotland are paying more than their counterparts north of the border.

Analysis by the party indicated the median income in Scotland is now £29,675 – above the threshold of £27,850 at which income tax charges become higher than in the rest of the UK, Conservative research indicated

Scottish Conservative finance spokesperson Liz Smith said: “The median annual Scottish salary is almost £2,000 above the threshold at which Scots workers pay more tax than they would south of the border.”

Meanwhile, the Scottish Retail Consortium (SRC) reiterated its call for business rates rises to be avoided, adding: “The First Minister has taken several positive steps over the last six months to improve the relationship with Scotland’s business community.

“This budget will give businesses the opportunity to assess exactly how deep that commitment will run.

“We hope the Scottish Government will take the pragmatic decisions needed to protect private sector jobs and commercial investment and prioritise economic growth.”