Kezia Dugdale has thrown down the gauntlet to First Minister Nicola Sturgeon by urging her to back a radical overhaul of income tax.
On the eve of today’s Budget debate at Holyrood, the Scottish Labour leader announced plans to raise rates by 1p – a move she claims would generate about £500million pounds to boost the stretched coffers of the country’s 32 local authorities.
Ms Dugdale said “we will all be poorer” if a controversial 3.5% cut to council budgets – including education – was not ditched during the first parliamentary debate on the Budget today.
But Finance Secretary John Swinney has stuck to his guns, insisting he “won’t increase” the tax bill.
Closing her speech in Edinburgh yesterday with a direct appeal to the Ms Sturgeon, Ms Dugdale said: “I have listened to you for 20 years tell Scotland that more powers means fewer cuts.
“We have the power in Scotland now, so let’s work together to avoid these cuts.
“I have listened to you since you became first minister say that education is your priority. It’s mine too. So let’s use the power you have to avoid cuts to education.
“You know, first minister, that if we do not make this change, it is our children, our young people, and the most vulnerable in society who will pay the price. We will all be poorer.
“So please, let’s put aside party politics, let’s come together and do the right thing for Scotland’s children.
“In the choice between using our powers and cutting our nation’s future, we choose to use our powers. What will you choose?”
Meanwhile, the Scottish Liberal Democrats have also called on the finance secretary to scrap the cut to council budgets today.
Party leader Willie Rennie said: “Instead of talking left and walking right, the SNP should support Liberal Democrat calls for a penny for education.
“The £475million that would be raised by adding one penny on to each tax rate would bring our education system back up the international standing.”
But Mr Swinney said: “I will not penalise those on low incomes, and I certainly won’t increase their tax bill. Instead this budget will see up to 51,400 lower paid workers receive an increase in pay.
“Our budget will equip the country for the future and lay the foundations for the reforms that will define the next parliament – reforms that will reshape our health and social care services, deliver a step change in educational attainment, deliver a fairer system of local taxation and use new powers over tax and welfare in a way that supports our central purpose.
“The current financial landscape presents us with a challenge and a choice – Scotland can accept these UK Government cuts or we can rise to the challenge and chose a Scottish alternative to austerity.
“We choose to rise to the challenge. This is the Scottish alternative.”