The Scottish National Party said it will deliver the “fairest and most progressive” income tax system in the UK, if elected.
At the party’s manifesto launch today (June 19), SNP leader John Swinney said it was the only party to be arguing for an end to spending cuts.
He said: “The SNP manifesto argues for new, sensible fiscal rules that will end the cuts, reverse the £1.3bn cut to Scotland’s capital budget, and invest in public services, starting with the NHS.”
Amongst the proposals the party pledged to rejoin the EU and deliver Scottish independence.
Tax
The party has pledged it will create a fairer tax system to raise an additional £1.5bn to invest in public services and fund fair pay deals for nurses and other public sector workers.
It also said SNP MPs will call for the full devolution of tax powers to ensure rates and thresholds fit the party’s “progressive” income tax rates.
The party pledged to crack down on tax evasion and avoidance as well as improve the transparency of tax paid by international companies to ensure they make a proportionate contribution to tax revenues.
It also said it would end the VAT exemption on private schools and also reform the tax to address the “current imbalances”.
Pensions
The SNP has pledged to “protect pensions” by maintaining the triple lock and move to deliver a “wellbeing pension”.
It said it would oppose any acceleration of planned changes or further increases to state pension age.
The party also said it would “stand up for Waspi women” by pressing the UK government to deliver “full, fast and fair compensation for women who have been wronged by pension inequality”.
It also pledged to provide full restitution for victims of the Equitable Life scandal, stating that the government needed to provide “urgent funding” to compensate those affected.
Other policies included scrapping the two child benefit cap and reintroducing a simplified Help to Buy Isa scheme.
Reaction
The Institute for Fiscal Studies called the SNP's plans to devolve income tax on savings and dividends and national insurance contributions a "sensible idea".
However, it warned: "Devolving all income tax rules would add complexity for some taxpayers and the tax authorities. And VAT is a particularly tricky tax to devolve, potentially creating trade barriers between Scotland and the rest of the UK, with reforms to VAT in Scotland also complicating the system.”
The institute said the biggest tax rise the SNP would implement would be an increase for higher-income individuals to match Scotland’s system, raising an estimated £16.5 bn in 2028-29.
This would see income tax for someone in England, Wales and Northern Ireland earning £50,000 a year rise by £1,600, while those earning £125,000 would see an increase of £5,200, according to the IFS.
It added: "By far the biggest revenue-raiser, though, is the proposal that the UK rejoin the EU. The SNP assumes that the resulting boost to economic growth would increase revenues by £30bn a year.
