Meeting of the Parliament 09 February 2023
I do, entirely, and that speaks to the importance of the independent and robust assessment and forecast provided by the Scottish Fiscal Commission, of the Government’s process of engagement and, indeed, of adhering to the principles and objectives that are set out in our “Framework for Tax”.
I recognise that the devolution of income tax affords us the opportunity to take a different approach and, indeed, a range of different approaches across a range of areas in Scotland. Our powers over income tax and over taxation more widely are essential to enabling us to do so, to fulfil the commitment to delivering the best social contract that we possibly can.
I note the recent findings from the IFS report, which recognise that the Scottish Government’s changes to the income tax and benefits system over the past six years will make the Scottish system considerably more progressive than that of the rest of Great Britain. The same report finds that, since 2017, the poorest 10 per cent of households will see their incomes increase by £580—4.6 per cent per year—compared to the rest of the UK, England and Wales, while the richest 10 per cent will see their incomes fall. Among the poorest 30 per cent, Scottish reforms to the income tax and benefits system are set to raise the income of households with children by around £2,000 per year on average.
That is made possible because we have those powers over income tax. It speaks to the point that powers are for a purpose and can effect real change—here, the material change in the circumstances in which individuals on low incomes find themselves.
I am conscious that we are out of time. I again thank members from across the chamber for their constructive input and support—or, at least, lack of opposition—to the Scottish rate resolution.