A respected think-tank has made it “crystal clear” that radical changes to income tax in Scotland would be “progressive”.
Both Scottish Labour and the Liberal Democrats have seized on comments by the Resolution Foundation supporting their proposed 1p rise – a move they argue would raise about £500million to stave-off cuts to council budgets.
Kezia Dugdale’s party were defeated in their attempt to raise income tax rates earlier this week amid claims from the SNP that it would hit low-paid workers hardest.
But Torsten Bell, director of the Resolution Foundation, said: “This tax rise would be progressive in the sense that the better off would pay a higher share of their incomes in increased taxes than those on lower incomes.”
The SNP continued to brand the proposed 1p increase in tax “unfair and unworkable” last night, but Ms Dugdale welcomed Mr Bell’s remarks.
She said: “Experts are lining up to confirm that Labour’s choice is fair.
“The SNP Budget will mean huge cuts to schools and local services, and it will short change families across Scotland.
“With a Scottish rate of income tax one penny higher than the rate Chancellor George Osborne set we can make a fairer choice to stop cuts to vital services and invest in our country’s future.”
Scottish Liberal Democrat leader Willie Rennie, who also backs a 1p increase in income tax to help fund education, added: “This respected think-tank is making it crystal clear to the SNP.
“Increasing income tax by one penny is progressive with those on the highest incomes bearing the greatest burden.
“The SNP tell us they are against the cuts and for progressive taxation so they should stop flailing around hunting for excuses not to act and instead embrace our plans to invest £475million in education.
“If they fail to change the SNP will be opting to side with the Conservatives rather than the progressives.”
But SNP MSP Kenneth Gibson hit back saying Labour were not “credible”.
He said: “Kezia Dugdale is proposing a tax hike on the working poor and has a duty to the people who would be hit in the pocket to set out exactly how her policy would work – her complete failure to do so only highlights why Labour aren’t even regarded as a credible party of opposition, let alone of government.”