Nicola Sturgeon has ruled out giving higher earners an income tax cut, despite her deputy admitting that they could flee Scotland unless she closes the growing tax gap with England. The First Minister described Kwasi Kwarteng’s decision to abolish the additional 45p rate of income tax in England for those on salaries of more than £150,000 as “a serious mistake, morally repugnant and fiscally disastrous”. She said following suit would be the “wrong thing to do” and that her government would not “make all the same mistakes” over Scotland’s income tax rates, which are already more onerous for middle and higher earners. But John Swinney, the Deputy First Minister and interim Finance Secretary, admitted that the prospect of wealthier taxpayers leaving Scotland for England was a “relevant factor”. His admission came after some of Scotland’s most eminent economists and business leaders, including three former SNP government advisers, warned that failure to reduce the top rate of tax could lead to an exodus of higher earners.

Source: The Times September 26, 2022 23:48 UTC