Oral Answers to Questions

Ranil Jayawardena Excerpts

Wednesday 19th April 2017 Commons Chamber

[Chris Davies (Brecon and Radnorshire) (Con)]

4. What discussions he has had with the Scottish Government on their new tax powers.

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

8. What discussions he has had with the Scottish Government on their new tax powers.

[The Secretary of State for Scotland (David Mundell)]

The UK and Scottish Governments continue to engage closely on the devolution of new tax powers. The Scottish Government are now responsible for setting the rates and thresholds of income tax. It is of course incumbent on them to use their powers to make Scotland an attractive place to live and work.

[David Mundell]

The shouts from Opposition Members just highlight the complacency of the SNP in relation to the Scottish economy, which contracted by 2% in the fourth quarter of 2016 while the UK economy grew by 0.7%. No Scot can be proud of that comparison.

[Mr Jayawardena]

Does my right hon. Friend agree that it is terrible that middle earners in Scotland are being penalised £400 this year by the Scottish Government, and by up to £1,400 by 2020-21, compared with England, where we have higher tax thresholds to help hard-working families?

[David Mundell]

My hon. Friend is right to highlight that point. I might not like the plans to make Scotland the most taxed part of the United Kingdom, but I acknowledge that that is a matter for the Scottish Government. They will have to account for their taxation policies, and the forthcoming general election will no doubt highlight these issues.