The Scottish Government has rejected the chance to increase the size of its budget through tax changes after finance secretary John Swinney said the rates would stay the same.
The move has been welcomed by the Scottish Conservatives, who said it means the SNP will finally have to stop complaining about Westminster’s spending choices.
Mr Swinney could have increased income tax today, or lifted the council tax freeze, but opted to do neither.
Previous cuts made to the colleges sector were not reversed, and he also resisted advice to change rates of Land and Buildings Transaction Tax (LBTT), which replaced stamp duty and has been criticised by experts who say it is jamming up the property market.
Scottish Conservative finance spokesman Murdo Fraser pointed out the Scottish Government’s total budget for next year from Westminster was £400 million higher than it is currently, adding that he could top this up either through tax levers or using his substantial underspend.
It was also announced that £4 million which came from the UK Government Barnett Consequentials for flooding relief for homes and businesses would be passed on to communities in full.
Scottish Conservative finance spokesman Murdo Fraser said:
“The finance secretary has chosen to set the Scottish rate of income tax at the same level as elsewhere in the UK.
“We applaud this decision – we do not believe that hard-pressed families in Scotland should pay higher taxes than those elsewhere in Britain.
“But it cannot be forgotten that John Swinney had the choice in the matter, and he chose not to increase the resource available to him by levying additional taxes.
“For years, the finance secretary has portrayed himself as a prisoner of Westminster austerity, but now that he has been given the key to the door of his cell, he has decided not to use it.
“So I trust we will hear no more from the SNP about austerity and Westminster cuts, when the party itself has made the choice not to increase the size of the budget available.
“It is disappointing there is no restoration of the Scottish Government’s swingeing college cuts, nor greater changes to its land and buildings transactions tax, which is having a detrimental impact on the market.
“The Scottish Conservatives will carefully scrutinise the detail of the budget that has been presented and will, as ever, suggest constructive changes.
“For the moment, we also welcome the extra cash for housing, and the promised review of non-domestic rates – which is a straight lift from the Conservatives’ General Election manifesto.
“It’s clear that where the Conservatives lead, the SNP follows.”
To hear the full exchange between Murdo Fraser and John Swinney, click here.