10% Tax Hike Will Leave Thousands Worse Off

Local Strathaven based MSP Linda Fabiani, has criticised the Labour government in Westminster for abolishing the lowest rate of income tax, which will mean over 300,000 Scottish taxpayers paying more in tax.

The decision to abolish the starting rate of income tax of ten pence in the pound means that taxes will increase for over 324,000 people in Scotland from the beginning of April. Twelve percent of all Scottish tax payers pay the 10% rate, and they will see their tax payments double this week from 10% to 20%.

Ms Fabiani said:

“At just the same time when the SNP is abolishing the council tax and easing the burden on Scottish taxpayers we have the labour government increasing the tax burden for the lowest earners in society. It is a stark contrast between the policies of the SNP and the Labour Party. The SNP want to get rid of an unfair tax burden while Labour is adding to it.

“This week we have seen the SNP cut prescription charges, scrap the graduate endowment and increase free personal and nursing care. There are clear differences between the progressive policies being pursued by the SNP in comparison with those of the Labour Party.

“The effect of doubling the tax bill for hundreds of thousands of people in Scotland will feel like a kick in the teeth to hard working men and women who will find they are taking home a lighter wage packet from now on.  

“Far from helping the less well off this tax hike comes at a time when food and energy prices are rising which will only increase the impact it has on peoples finances.

“In October 2000 Wendy Alexander, then Communities Minister, said that the ten pence starting rate of income tax contributed to women earning £65,000 more in their working lives. Does she now accept that her claim in 2000 has now been turned on its head and women will be earning considerably less?