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Holyrood 2016: Debate to focus on education and tax

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Scotland’s party leaders will have a focus on the future as the battle for power at Holyrood continues.

The Tories, Labour and the Liberal Democrats will concentrated their campaigning efforts on education, while SNP leader and First Minister Nicola Sturgeon will unveil her plans to help more young Scots into work.

It is the first full week of the election campaign, with the leaders also set to clash on television for a second time tonight, in a live STV debate.
Ahead of that Ms Sturgeon will be campaigning in Edinburgh, visiting a community project in the Grassmarket area with local candidate Alison Dickie.

She will say: “We will use the new powers coming to the Scottish Parliament to support Scotland’s young people and to grow our economy. I want to see all our young people start their working lives with the best possible opportunities and an equal chance of success.”

Both Scottish Conservative leader Ruth Davidson and Labour’s Kezia Dugdale will be visiting nurseries in the capital as they focus on how best to reform the education system.

Labour is highlighting a drop in probationer teachers since the SNP first came to power in 2007.

There were 3,502 probationers working in classrooms in 2007, with this falling to 1,944 by 2011, before rising to 2,524 in 2015, according to figures from the Scottish Government.

Ms Dugdale plans a 1p rise in the basic rate of income tax, and has pledged the hundreds of millions of extra cash this would raise each year would go towards boosting education and local services, and would also reintroduce the 50p top rate of income tax for the very highest earners – something the SNP has ruled out for next year.

The Labour leader said: “Nicola Sturgeon claims that education is the defining priority of her government, but reality of her record just does not reflect that. Under the SNP the number of probationer teachers has dropped by more than a quarter and there are more cuts on the way.

“Labour will ask those earning more than £150,000 a year to pay a bit more in tax so we can stop the cuts and invest in our schools. Nicola Sturgeon used to agree that the richest should pay their fair share, but now she thinks it would be reckless and refuses to use the new powers to make it happen.”

Ms Dugdale added: “We need to cut the gap between the richest and the rest in our classrooms but that won’t happen with the SNP cutting the budget for schools.

“Faced with the choice between cuts that will undermine Scotland’s future prosperity and using the powers of the Scottish Parliament Labour will use the powers to invest.”

The Scottish Liberal Democrats also plan to put 1p on the basic rate of income tax to raises more money for nurseries, schools and colleges, branding the policy a “penny for education”.

Scottish leader Willie Rennie said: “Liberal Democrats have set out clear plans for education, with a transformational investment of half a billion pounds a year for nurseries, schools and colleges. We will double investment in mental health services for young people and end the scandal of young people having to wait a year for treatment.

“My challenge to the other parties ahead of this debate is clear: they need to match our ambition and build a Scotland that is fit for the future.”

He added: “In last week’s debate it was clear that the other parties will gamble with the investment needed in education. The SNP were confused on the 50p rate. The Conservatives kept quiet about where their axe will fall to pay for tax cuts for the highest earners.”
Meanwhile the Scottish Greens will unveil reforms to the income tax system planned for once Holyrood gets power over rates and bands in April 2017.

The party will also set out its plans to scrap the existing council tax and replace it with a system based on up to date property which would hand more control to local authorities.

A Scottish Green spokesman said: “Public services and community facilities are being cut due to a double whammy of Tory austerity and a ninth year of the SNP’s regressive council tax freeze. With new powers over income tax rates and bands, now is the time for Holyrood to be bold and raise revenue to reverse cuts and tackle inequality. Our plans will show that for that bolder Holyrood, more Green MSPs are essential.

“We will demonstrate our commitment to scrapping the unfair, outdated council tax. The Scottish Government’s own poverty adviser has said that bold reform of local tax is needed to tackle inequality, and the Commission on Local Tax Reform has pointed out that most properties are currently in the wrong band. Our replacement would be phased in to ensure a smooth adjustment, and would ensure fair funding for our under-threat public services.”

The Greens have set out plans to introduce a new top rate of income tax of 60p for Scotland’s highest earners.

But the party pledged everyone earning £26,500 a year or more would get to keep more of their cash under its “progressive” income tax plans

It would scrap the current council tax system and introduce a residential property tax, where the amount households pay would be based on an annually updated value of what their home is worth.
Tax has become a key issue in the run up to May’s Holyrood election, with the Scottish Parliament getting powers over income tax rates and bands from April 2017 onwards.

Under the Scottish Green proposals, the current basic rate of income tax would be replaced with a rate of 18% for the first £7,500 of cash above the personal allowance – which is to rise to £11,000 in 2017-18.
A rate of 11% would be applied to income above £19,000 but higher earners would pay 43% tax on income over £43,000, while earnings above £150,000 would be taxed at 60%.

According to the Scottish Greens, their plans would raise £331 million additional funding to invest in public services than the SNP’s income tax plans – which would not implement the planned rise in the threshold for the 40p tax rate but would keep the top rate of income tax at 50p for 2017-18 at least.

While the Greens said an MSP earning £60,685 would pay £938 a year more in tax, they said someone on the median full time salary of £27,710 would pay just £24 more a year.

Scottish Green co-convener and Glasgow candidate Patrick Harvie said: “Public services such as schools and social care and community facilities have been hit hard by cuts from the SNP Government on top of eight years of a regressive council tax freeze.

“Despite arguing for control over income tax, the SNP have failed to seize the opportunity to create a more progressive system to tackle inequality. There is an urgent need and the Scottish Greens are responding to it.

“People on generous salaries, such as MSPs, deserve to pay a fairer share to protect and improve the public services we all rely on. Someone earning less than the average and struggling with the cost of living deserves to keep more of what they earn.”

He added: “Scottish Greens believe Scotland can be a fairer country but we need a bolder Holyrood with more Green voices to press the case. With the SNP’s reluctance to act and Labour’s limited offering, our income tax proposals will find favour with those who see the chance to create a more equal Scotland.”

The proposed residential property tax is similar to the system currently in place in Denmark, with the Greens pledging it would be introduced over a five-year transition period with options to reduce or defer payment, depending on circumstances.

Green local government spokesman and Lothian candidate Andy Wightman said: “Property owners and tenants are being left in a ridiculous situation by the SNP with a tax based on values from quarter of a century ago. Most people are paying the wrong amount. A wide variety of experts in this field have shown how a property tax can be made proportionate and progressive, and that is what the Scottish Greens are proposing.”