Today was an historic day. Twenty years and three months ago, the Scottish people voted to have a Scottish Parliament with tax raising powers.
In his annual Budget, Scottish Finance Minister Derek Mackay increased the basic rate of income tax to 21p for those earning above £24,000. He also decreased it to 19p for the lowest earners up to £13,850. He put up the higher rate to 41p and the top rate to 46p.
It’s all pretty modest and it represents the sort of moves we were calling for in the Scottish elections last year and since. We wanted to see the money brought in put into education to make what Willie Rennie calls a “transformative”investment.
So we’re not going to complain about the idea of tax rises in principle. However, Derek Mackay is getting a world of pain from the Tories because the SNP said in their manifesto that they wouldn’t raise the basic rate of income tax. They were pretty scathing about our plans during the campaign and there are a whole load of words they said that are coming back to haunt them now.
They could have saved themselves that grief by ceding the principle last year.
Anyway, that is their problem to deal with. The Budget is a pretty modest affair. It’s certainly not the sort of budget to deal with a struggling health service, unfit for purpose education system and a housing crisis that keeps getting worse.
Willie Rennie had this to say: