Chamber
Meeting of the Parliament (Hybrid) 25 February 2021
25 Feb 2021 · S5 · Meeting of the Parliament
Item of business
Scottish Income Tax Rate Resolution 2021-22
The result of the division on motion S5M-24225, in the name of Kate Forbes, on the Scottish income tax rate resolution, is: For 88, Against 1, Abstentions 35.
Motion agreed to,
That the Parliament agrees that, for the purposes of section 11A of the Income Tax Act 2007 (which provides for income tax to be charged at Scottish rates on certain non-savings and non-dividend income of a Scottish taxpayer), the Scottish rates and limits for the tax year 2021-22 are as follows—
(a) a starter rate of 19%, charged on income up to a limit of £2,097,
(b) the Scottish basic rate is 20%, charged on income above £2,097 and up to a limit of £12,726,
(c) an intermediate rate of 21%, charged on income above £12,726 and up to a limit of £31,092,
(d) a higher rate of 41%, charged on income above £31,092 and up to a limit of £150,000, and
(e) a top rate of 46%, charged on income above £150,000.
References in this contribution
Motions, questions or amendments mentioned by their reference code.
In the same item of business
The Deputy Presiding Officer (Christine Grahame)
SNP
The next item of business is a debate on motion S5M-24225, in the name of Kate Forbes, on the Scottish income tax rate resolution. Members should note that t...
The Cabinet Secretary for Finance (Kate Forbes)
SNP
Apparently so. I move, That the Parliament agrees that, for the purposes of section 11A of the Income Tax Act 2007 (which provides for income tax to be cha...
The Deputy Presiding Officer
SNP
That is excellent—off we go. 16:37
The Minister for Trade, Innovation and Public Finance (Ivan McKee)
SNP
I had checked the choreography with my officials earlier. The process is apparently that the cabinet secretary moves then I speak to the motion. I am delight...
Murdo Fraser (Mid Scotland and Fife) (Con)
Con
It is a peculiarity of the budget process that we have to set the rate resolution before our final vote on the budget. We do not yet know the final overall s...
John Mason (Glasgow Shettleston) (SNP)
SNP
Will the member give way?
Murdo Fraser
Con
If I have time, I will give way.
The Deputy Presiding Officer
SNP
You will get your time back, Mr Fraser.
John Mason
SNP
Does Murdo Fraser accept that people are attracted to Scotland for a range of reasons? For most people, the tax rate is not the dominant reason. They come he...
Murdo Fraser
Con
Mr Mason is right that there are all sorts of factors that lead to people coming to and leaving Scotland. However, if I were him, I would be very nervous abo...
Ivan McKee
SNP
Will the member take an intervention?
Murdo Fraser
Con
I will, if I have time.
The Deputy Presiding Officer
SNP
The minister must be very brief.
Ivan McKee
SNP
I will clarify the point that I made. I said that the £119 million reflects the better performance of income tax raising in Scotland than that in the rest of...
Murdo Fraser
Con
That was a very long intervention. If the minister checks the record, he will see that he said—I listened to him very carefully—that the £119 million include...
The Deputy Presiding Officer
SNP
There is some time for interventions. 16:54
Jackie Baillie (Dumbarton) (Lab)
Lab
Since the Government took charge of Scottish income tax rates, Labour members have been critical of how it has used the powers. For years, the SNP demanded t...
Willie Rennie (North East Fife) (LD)
LD
This is like a blast from the past—the debates of yesteryear, when we used to argue about tax rises and whether we would get extra revenues or whether there ...
Patrick Harvie (Glasgow) (Green)
Green
The current session of the Parliament has seen the only substantial tax reform since devolution, with a new, five-band system of income tax that is closely m...
The Deputy Presiding Officer
SNP
We move to the open debate. There is a little time in hand for interventions. 17:07
John Mason (Glasgow Shettleston) (SNP)
SNP
We now move on to the other side of the budget equation: where the money is to come from to pay for the expenditure that we need and want. I have to say that...
Neil Findlay (Lothian) (Lab)
Lab
Will the member take an intervention?
John Mason
SNP
I will not, after Mr Findlay’s insult to the cabinet secretary. The section on tax policy in the Finance and Constitution Committee’s report—paragraphs 167 ...
Bill Bowman (North East Scotland) (Con)
Con
The SNP is seeking members’ agreement to the proposed rates and bands for Scottish income tax. The Scottish Conservatives believe that it is unfair to burden...
Tom Arthur (Renfrewshire South) (SNP)
SNP
Will the member give way on that point?
Bill Bowman
Con
On which point?
Tom Arthur
SNP
That was a very good riposte. Can Mr Bowman confirm that it is still Conservative Party policy that there should be parity between the income tax rates in S...
Bill Bowman
Con
I will not, because I am not running in the election. I think that Murdo Fraser said that our aim is that we should reach a parity position at least in due c...
The Presiding Officer (Ken Macintosh)
NPA
Mr Bowman, through me, please.
Bill Bowman
Con
Thank you, Presiding Officer. We say to the Scottish people that there is at least one party in this chamber that is on their side, that does not want to s...