SNP tax rises to hit Scotland’s ‘most vulnerable’ households as 80,000 to pay extra

Aug 26, 2023 at 6:08 AM
SNP tax rises to hit Scotland’s ‘most vulnerable’ households as 80,000 to pay extra

The SNP is being urged to “put on hold” plans to lift taxes which may financially damage 80,000 of Scotland’s “most vulnerable” households on the bottom incomes.

A Scottish Government consultation document printed in July urged that Holywood lawmakers and the Convention of Scottish Local Authorities (COSLA) had been exploring introducing extra flexibility with regards to council tax bands.

Specifically, this could lead to tax rises for households in Bands E and better of between 7.7 p.c and 22.5 p.c.

Earlier this week, Scottish Labour claimed the choice to hike the council tax bands would in actuality damage 80,000 of the nation’s low-income households.

The Scottish Retail Consortium has beforehand beneficial the SNP-led Government and First Minister Humza Yousaf undertake a “more frugal approach” to spending as a substitute of elevating taxes.

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Based on the Scottish Government’s figures, Scottish Labour studies that 13.7 p.c of low-income households stay in houses with a tax band E or above.

This is equal to 108,200 households and, whereas some might have entry to Council Tax Reduction assist, solely 23,060 claimants from these tax bands obtain this profit.

All collectively, Scottish Labour claims the SNP’s tax increases would hit between 80,000 to 85,000 of the poorest families.

Speaking completely to the Daily Express, Chris Reed, the manager advertising and marketing director at Protect Line, beneficial the Scottish Government halts its plans in the intervening time.

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When requested whether or not rising council tax ought to go forward, the monetary skilled mentioned: “Yes, and no”.

He defined: “At the moment, the proposed increase should be put on hold until inflation comes under control and the current economic crisis that the UK as a whole is facing begins to ease and level off.

“When it does, that’s when the rises can be implemented, and as unfortunate as they are, they’re also necessary.

“This is to try and shore up the shortfall that councils have had to try and deal with and weather, in order to maintain public spending and ensure that they can maintain a decent level of public service across the board.”

The finance skilled warned that SNP politicians ought to be underneath no phantasm that the pending tax rises will damage Scotland’s lower-income households.

Mr Reed added: “There’s no manner of skirting across the concern or ignoring it, and it’s going to be laborious for probably the most weak.

“Maybe a rethink in regards to the quantity that’s payable is required, and social and financial escalator needs to be factored into the equation in order that the monetary burden for these in probably the most want is lessened.”

Daily Express has contacted the Scottish Government for remark.