The Scottish Labour leader has claimed the “big lie” of the election campaign is that the SNP are an “anti-austerity party”.
Kezia Dugdale said independent analysis of her party’s tax plans showed that “only Labour has a real plan to stop the cuts to our public services”.
But SNP leader Nicola Sturgeon hit back, saying her party had “stood stronger for Scotland and against the austerity agenda of the Tory Government”.
The clash followed a report by the IPPR think tank that suggested Labour’s proposal to raise income tax, including a new 50p top rate, would raise more than £1billion.
Speaking during a campaign stop in Edinburgh, Ms Dugdale said: “Cuts to public services will damage our ability to grow the economy and compete with the other nations of the world.
“Only by investing in education can we give our young people the skills they need to compete for the high skilled jobs of the future.
“The big lie at the heart of this election campaign is that the SNP are an anti-austerity party. The IPPR report exposes that big lie once and for all.”
But, campaigning in East Kilbride, Ms Sturgeon defended her party’s policies.
She said: “In government in Scotland, and leading the opposition in Westminster, the SNP have stood stronger for Scotland and against the austerity agenda of the Tory Government.
“When the Tories tried to slash £7billion from Scotland’s budget during the fiscal framework negotiations, the SNP stood firm, and secured new powers for Scotland without a single penny being cut.
“When they imposed the bedroom tax on Scotland, the SNP Government mitigated it. We’ll formally abolish it when we have the powers to do so, and ensure no further cuts to disability benefits.
“We will resist Tory attempts in the Scottish Parliament to reintroduce taxes on ill health and on education.
“And we will oppose Tory moves at Westminster to spend £167bn on renewing Trident, privatise the NHS and impose yet more cuts to Scotland’s budget.”
Scottish Liberal Democrat leader Willie Rennie, speaking during a visit to Fife, said the revelations contained in the so-called Panama Papers showed now was not the right time to cut taxes.
He said: “People are rightly angry that so many of the wealthiest in our society have fiddled the system to avoid paying their taxes.
“Taxes pay for our schools, for hospitals, roads and other public services. Whether we are talking about wealthy individuals or big companies, people should not be allowed to cheat the rules.”
