(5 years, 7 months ago)
Commons ChamberThanks to the surprising decision by the Scottish Government, our valiant armed forces are obliged to pay a higher rate of income tax than people in other parts of the country. As I hope the whole House would agree, the MOD sees armed forces personnel as a national asset, so we have introduced mitigation payments for eligible personnel to offset the unfair burden placed on our valiant soldiers, sailors and air personnel.
The Minister was very enthusiastic to make his point, at any rate.
I am grateful to the Minister for his response and, indeed, for the Government’s policy of ensuring that our brave armed forces men and women are not left out of pocket by the SNP Scottish Government’s bad decision to put up Scottish taxes—it has become known as the “nat tax” in Scotland—but I believe the damage has already been done. I have received anecdotal evidence from the spouses of armed forces men and women who are now not coming to Scotland because they fear paying higher taxes in Scotland if their spouses are serving there.
My hon. Friend is absolutely right that this issue affects not just those in uniform for whom we have responsibility, costing the MOD £4 million a year, but their spouses, partners and so forth. We are pleased to say that around three quarters of those partners, spouses and so forth are in employment—that is on a par with the civilian sector—but that means that they, too, face that tax burden if they move to Scotland.