THERE is “no appetite” among Scottish ministers for major tax changes at the upcoming Scottish budget, The Scottish Sun on Sunday can reveal.
In the strongest hint yet that John Swinney will not bring in income tax increases or decreases for the first time for two years.
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A senior Scottish Government source told this newspaper: “There is no appetite for tax changes, up or down.
“We’ve gone through that s*** already.”
Critics said the decision was an admission previous tax hikes had not worked.
Nats finance minister Shona Robison will unveil her budget to MSPs at Holyrood on Wednesday.
And it comes after two consecutive years of major surgery to the income tax system in Scotland.
Nicola Sturgeon’s final budget in 2022 increased both the Higher and Top rate by one percentage point.
And last year, Humza Yousaf chose to introduce a new 45 per cent Advanced rate for those earning between £75,000 and £125,140.
The ex-SNP leader also increased the top rate of income tax to 48 per cent.
In total, Scotland has three extra tax bands compared to England, with the Advanced rate also joined by a 21 per cent “intermediate” rate between £26,562 to £42,662, and a 19 per cent “starter” rate between £12,571 and £14,876.
Scots on above £28,867 pay more than their counterparts down south.
And SNP chiefs have doubled the number of grafters considered higher earners since 2016 with more than one in four expected to fall into that bracket by 2028/29.
Scottish Tory finance spokesman Craig Hoy blasted high-tax policies from the SNP.
He said: “Their high-tax agenda is failing Scotland, stifling growth and discouraging investment.
“Widening the tax gap even further in Wednesday’s budget to plug the huge black hole the SNP’s mismanagement has created in the nation’s finances would be catastrophic.”
Scottish Labour’s finance spokesman Michael Marra said increasing taxes on Scottish workers would “not boost growth”.
He said: “It seems that the SNP have finally realised dragging nurses into the higher tax bracket didn’t go down well with Scots who are paying more and getting less in return.
“This Scottish Budget is an opportunity to end the decline and take our country in a new direction – the SNP must not squander it.”
Scottish Lib Dem economy spokesman Willie Rennie said higher taxes had not brought in extra cash and have hit economic growth.
He said: “If reports are true that the SNP won’t raise taxes in the budget it will be a belated recognition that their economic policy of recent years has been a mistake.”
The budget will also see the Scottish Government announce how it will spend a £3.4billion bonanza handed to it by Rachel Reeves at the UK budget in October.
Insiders have complained that much of the money will go directly to the NHS, or be swallowed up by the increase in employer National Insurance Contributions.
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However the UK Government has pledged to provide a further £300million to partially cover that increased cost which is higher in Scotland due to a larger and better paid public sector.
Despite this, experts said last week that Ms Robison only has “limited room for manoeuvre”, despite the “significant” additional cash Holyrood ministers will receive from the UK Government.
