Savings for lower earners from the SNP’s new starter rate of tax would be cancelled out by a local council tax rise of as little as 2%, the Scottish Conservatives have said.
The most that can be saved from Derek Mackay’s proposed changes to income tax rates and bands is £20, just 38p.
The Finance Secretary’s draft budget has allowed local authorities to increase council tax by 3% next year. Last year, 21 of 32 councils raised levels by the full 3%, with two more increasing the rate by 2.5% and one by 2%.
pi
Even in the local authority area with the lowest level of tax, Comhairle nan Eilean Siar, bills would go up by £29.70 at 3% and £21.23 at 2%.
Murdo Fraser, Scottish Conservative finance spokesman, said:
“The SNP has said that their income tax plans will mean savings for those on lower incomes, but any benefit would be wiped out by a council tax rise of 2%.
“As usual, Derek Mackay is giving with one hand while taking away with the other.
“Research by the Scottish Conservatives have shown that any increase in tax revenues could be achieved by cutting down on wastage in government spending.
“And as world-renowned economist Arther Laffer has said yesterday – increased taxation does nothing to grow the economy.
“The Finance Secretary, and the SNP, should think again before hammering Scots with tax rises at a time when our economy is struggling.”