HOLYROOD Finance Secretary Shona Robison was tonight accused of “cheek” by sneakily trying to take the credit for Chancellor Jeremy Hunt’s 2p National Insurance cut.
The Scottish Government chief bragged to MSPs last week that only those Scots on more than £100,000 a year “will pay more in income-based taxes” from April compared to this financial year.
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However, The Scottish Sun can reveal that this is only the case because of the Chancellor’s 2p NICs cut, which kicked in from January.
Ms Robison did not mention this point during a Holyrood speech last week when the Scottish Government’s Budget for 2024-25 was voted through by the SNP and Greens.
And tonight, Scottish Tory finance spokesperson, Liz Smith, said Ms Robison had “some cheek trying to take credit for the UK Chancellor’s National Insurance cut”.
She added: “It’s only because National Insurance is reserved that she hasn’t been able to override Jeremy Hunt’s cut – and further increase the burden on Scots workers, as she’s done, to devastating effect, with income tax.”
It comes amid a blazing row over the Scottish Government’s spending plans, dubbed a “tax and axe” budget by rivals.
There are concerns about stealth taxation – through freezing the 42p higher rate threshold at £43,663 – dragging hundreds of thousands of Scots like plumbers, electricians, police and teachers into higher tax brackets.
And SNP ministers have also created a new 45p tax band for those earning between £75,000 and £125,140.
But ahead of the Holyrood Budget vote, Ms Robison last week praised her “progressive tax system” and said: “The Budget’s changes to income tax, including the creation of the new advanced rate, will mean that only employees earning in excess of £100,000 will pay more in income-based taxes during the coming financial year than they did in this one.”
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However, the use of the expression “income-based taxes” rather than “income tax” raised eyebrows.
And pushed for their workings, the Scottish Government confirmed the 2p cut to employee NICs “is worth a maximum of £754 annually”, “so the rise in income tax is offset by the NICs cut for employees until you earn just above £100,000”.
Asked about the criticism, a Scottish Government spokesperson later said decisions on income tax “are carefully considered and Scottish Ministers have paid careful attention to the effect of the UK Government 2p cut to National Insurance”, adding: “Scotland has the most progressive income tax system in the UK, protecting those who earn less and asking those who earn more to contribute more.”
We told last week how Mr Hunt is mulling over a further National Insurance tax cut ahead of Wednesday’s UK Budget.