by Bill Heaney
The internationally respected Institute of Chartered Accountants of Scotland has just stated that Scotland’s income tax is overly complex and is making our economy less competitive, according to Malcolm Offord, leader of Reform UK.
He told First Minister’s Questions at Holyrood today: “That mirrors Reform Scotland’s policy position as set out in our recent manifesto. Will the First Minister now graciously accept that we have won the argument on tax?”
Stephen Flynn, pictured right, the SNP Cabinet Secretary for Economy, Tourism and Transport, and much-tipped successor to John Swinney, should the axe fall on the First Minister in the wake of the Murrell scandal, interjected: “Has Nigel Farage paid the tax on his £5 million?”“Will the First Minister now implement Reform Scotland’s plan to cut six income tax bands to three and, further, to reduce each band by 1p below the rate in England?”
John Swinney replied: “That is a daring and bold attempt by Lord Offord to get me to accept his point of view, but I am afraid that I will resist the temptation. If I were to accept his point of view, I would have to accept swingeing cuts in public expenditure, and I have no intention of doing that.”
Malcolm Offord countered: “It is early days in the seventh session of the Holyrood Parliament, but in all the preliminary debates so far there has been one dominant theme—just referred to by the First Minister—which is the demand to spend more money.
” If the First Minister wants more money for public services, does he accept that he will raise more tax revenue if he cuts tax rates to allow the economy to grow?”
“Mr Offord is correct that these are early days in this session of Parliament. As he knows, my party’s manifesto set out a willingness to do several things on tax.
“We set out that we would not increase the rates or the number of bands, and we gave an absolute commitment that the majority of taxpayers in Scotland would pay less in taxation than taxpayers in the rest of the United Kingdom. That is our sustained position, and we must deliver that.
“We also said that, over the course of this session of Parliament, we would look for opportunities to simplify the tax system. As Mr Offord may have picked up from the comments that I made publicly at a Confederation of British Industry event a couple of weeks ago and at the Prosper conference this morning, I lay the heaviest emphasis on the importance of the Government taking measures—which we will take—to encourage and motivate growth in the economy.
” If we have a strong economy, we can have strong public services. That is the social democratic contract that I deliver to the people of Scotland.”
“Does the First Minister agree that that point proves that Scotland’s record high taxes are driving away our most talented Scots? Why on earth did she leave before at least hearing the First Minister’s cunning plan for a second independence referendum? Is it simply that she does not want to inhabit the same country as Stephen Flynn?”