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Chamber

Meeting of the Parliament 14 December 2016

14 Dec 2016 · S5 · Meeting of the Parliament
Item of business
Taxation

Of course a wider package of measures is required. Clearly, however, the challenges in Scotland are greater, and that is why I believe that we must have the investment to match. It is quite clear that Scottish education authorities are struggling with their finances and that there have been drastic cuts to schools. We need to make a difference in order to close the attainment gap. To deny that is to deny reality.

My final argument concerns the fact that the Conservatives present themselves as a low-tax party, but they forget about all the stealth taxes that they propose to introduce. To be fair, they want lower income taxes, but they support a number of more regressive stealth taxes. For example, the council tax in England is rising by up to 6 per cent over the next two years. Perhaps employers would have something to say about the increase in national insurance contributions from those who earn £45,000 a year and just below that level, which represents a big increase of roughly £200 for someone on that wage. That is a proposal from the Conservatives but it is not something that they boast about. The apprenticeship levy is not additional funding for training; it is a replacement of the funding that we already have. Dare I mention the prescription charges and tuition fees that the Conservatives are desperate to introduce in Scotland? All those things represent stealth taxation rather than taxation that is up front, transparent and progressive, which is what income tax is.

My proposal is that we should reject the Conservatives’ throwback to the 1990s. Ruth Davidson’s political hero is John Major. He was famously, or infamously, in favour of 22 Tory tax rises—those who were around in that era will remember those stealth taxes—and was booted out of office immediately after he proposed them. However, we have also heard today that the Conservatives want us just to blithely follow what the Chancellor of the Exchequer in London wants to do—an anti-devolution stance—and that they reject the proposal that we should invest in our economy through investing in education. Truly, we are looking at a Conservative Party that has gone back to the 1990s and is not the moderate Conservative Party that it likes to present itself as.

I move amendment S5M-03063.2, to leave out from “families” to end and insert:

“investing in skills is the best way to strengthen the economy, and calls for a modest penny on income tax for this purpose, raising £500 million to transform Scottish education.”

References in this contribution

Motions, questions or amendments mentioned by their reference code.

In the same item of business

The Presiding Officer (Ken Macintosh) NPA
The next item is a debate on motion S5M-03063, in the name of Murdo Fraser, on taxation. 14:40
Murdo Fraser (Mid Scotland and Fife) (Con) Con
Tomorrow, the Cabinet Secretary for Finance and the Constitution will deliver an historic budget. It will be historic not just because it will be the first b...
John Mason (Glasgow Shettleston) (SNP) SNP
Murdo Fraser talks about gaps. Does he accept that we are talking about two separate things: the economy and taxation? Is he not concerned about the gap betw...
Murdo Fraser Con
There is a certain irony in that intervention from John Mason. During the independence referendum, Mr Mason and I did perhaps 30 debates around the country w...
Patrick Harvie (Glasgow) (Green) Green
I am grateful to Murdo Fraser for giving way to someone who never endorsed what was in the SNP’s white paper. The UK Government has just made tax changes to...
Murdo Fraser Con
Mr Harvie is being ungenerous. He will know well that the measures that are being taken by the UK Government to more than double the threshold for income tax...
Neil Findlay (Lothian) (Lab) Lab
Will Mr Fraser take an intervention?
Murdo Fraser Con
No. I need to make some progress. I will give way later, if I have time. Let us look ahead to the Scottish Government’s budget. Roughly half the total funds...
Willie Rennie (North East Fife) (LD) LD
Will Murdo Fraser take an intervention?
Murdo Fraser Con
I have not taken an intervention from the Liberal Democrats yet, so I will give way.
Willie Rennie LD
Murdo Fraser seems to have ignored the real benefit of boosting skills in Scottish society in order to boost the economy. He seems to think that tax is the o...
Murdo Fraser Con
I am so disappointed in Willie Rennie’s approach to the debate. I remember those heady days when Tavish Scott led the Liberal Democrats and Mike Rumbles went...
Neil Findlay Lab
Will Murdo Fraser take an intervention?
Murdo Fraser Con
I have not taken a Labour intervention, so I happily give way to Mr Findlay.
Neil Findlay Lab
If Murdo Fraser genuinely believes what he is saying, a way to spread the wealth would be to have more people with high-paid jobs to pay the higher taxes. Wh...
Murdo Fraser Con
I am so disappointed in Neil Findlay’s intervention. I have been following the debate at Westminster very closely. Even Jeremy Corbyn, and John McDonnell, th...
The Minister for Business, Innovation and Energy (Paul Wheelhouse) SNP
As my colleague the finance secretary has made clear previously in this chamber, the Scottish Government will confirm its tax proposals in its draft budget, ...
Willie Rennie LD
The minister is rightly parading the new powers that are coming to the Scottish Parliament, but why is his Government increasing the unfair council tax that ...
Paul Wheelhouse SNP
I will turn to council tax later, and I hope that Willie Rennie will pick up on those points. Income tax alone will account for the funding of more than a t...
Murdo Fraser Con
Will the minister give way?
Paul Wheelhouse SNP
I am running short of time, but if the Presiding Officer allows some time for interventions, that will be gratefully received.
Murdo Fraser Con
I am very grateful to the minister for giving way. Does the minister agree with the basic proposition that has been set out by the former First Minister, Al...
Paul Wheelhouse SNP
I am trying to set out our understanding of that very point. By using the package of tax and revenues across the Scottish economy, we can have a more competi...
Jackie Baillie (Dumbarton) (Lab) Lab
Will the minister take an intervention?
Paul Wheelhouse SNP
I am struggling for time now. I ask the member to be brief, please.
Jackie Baillie Lab
I will be very brief. Will the minister reflect on the very first recommendation of the commission that he referred to, which was to abolish the council tax?
Paul Wheelhouse SNP
Our reforms will protect household incomes, make local taxation fairer and ensure that local authorities continue to be properly funded, as I said. After tho...
Patrick Harvie Green
Will the minister take an intervention?
Paul Wheelhouse SNP
I am sorry, but I am in the last moments of my speech. Other parties will no doubt take a different view on how those tax powers can be used. Although we r...
Kezia Dugdale (Lothian) (Lab) Lab
I welcome the opportunity to talk about tax this afternoon. I thank the Tories for bringing the debate to the chamber. I also thank them for the simplicity o...