ALEX Salmond has slapped down one of his senior MSPs after he suggested Holyrood should raise the top rate of income tax above 50%, prompting opposition claims of a government split on tax.
John Mason, deputy convener of Parliament’s finance committee, told the Sunday Herald the top rate should go up once Edinburgh acquires increa- sed powers over income tax in 2015.
However, the First Minister’s spokesman last night dismissed Mason’s views out of hand and the division allowed Labour and the Tories to claim the SNP was “all over the place” on tax.
Tory Chancellor George Osborne is reportedly thinking of axing the 50% top rate as it doesn’t raise enough money, and may deter investment.
Mason told the Sunday Herald: “If George Osborne is going in one direction, then I think I want to go in the opposite direction. I’ll take a penny [on the top rate] for starters.”
The comments are awkward for the SNP leadership, which has sugges- ted Scotland could have lower taxes if they are passed to Holyrood.
Last week Finance Secretary John Swinney issued a paper arguing for corporation tax to be set by Holyrood so it could be cut from the UK rate of 26% to nearer the Irish rate, 12.5%.
But Mason, 54, whose Glasgow Shettleston constituency is one of the most deprived in the UK, said: “Some people at the very top have not really lost out of this recession ... but when you look at the price incr- eases, lack of jobs, people on redu- ced hours, people on frozen pay it all seems to hit those at the bottom.
“So I think there’s some public demand for increasing taxes on the well-off.”
He predicted higher tax would have cross-party support among MSPs, and there was no need to wait for independence, as the Scotland Bill currently going through Westminster will give Holyrood far greater control of income tax by 2015.
“There would be more appetite in Scotland, cross-party, to play around with the higher rates,” he said.
“Even before independence, if we’ve got power over income tax, then that will be one of the things that all of the parties will argue over. I’d be arguing for a bit more income tax.”
Under the Scotland Bill’s proposals, if Holyrood increased the top rate of tax, it would have to raise the basic and upper rates by the same amount, as all bands are locked in step.
However, MSPs recently called for Holyrood to have the power to vary the higher rate of income tax independently of the others in future.
Tory finance spokesman Gavin Brown said: “This SNP tax plan would hit every taxpayer… the last thing people need as they struggle to pay bills.”
Richard Baker, for Labour, added: “The SNP are all over the place on tax policy. Last week Alex Salmond and John Swinney were arguing in favour of cutting taxes for businesses and now John Mason is advocating a tax increase. The SNP do not have a clear economic strategy.”
A spokesman for the First Minister said that Salmond did not agree with his MSP, adding “John Mason, a backbencher, is entitled to his view.”
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article