(7 years, 9 months ago)
Commons ChamberThe Scottish Government will take on their first major new tax power from the Scotland Act 2016 in April, enabling them to set rates and thresholds of income tax. The Chief Secretary to the Treasury attended a Joint Exchequer Committee with the Scottish Government’s Cabinet Secretary for Finance in November. They discussed ongoing work, and there are regular ongoing discussions.
The Prime Minister says that she wants income tax rates on hard-working British people to be as low as possible. Should Nicola Sturgeon be sufficiently brave or bonkers to increase the rate of taxation on hard-working Scottish people, what economic impact would that have on Scotland?
May I thank my hon. Friend for his important question? In taking over income tax powers, the Scottish Government now need to account for how they use them, particularly if they plan to make Scotland the highest tax part of the UK.