Exclusive:Higher tax has not delivered better public services, say half of Scots
A poll by Survation found just 27 per cent believe the level of personal tax in Scotland provides value for money
More than half of Scots do not believe higher income tax rates north of the Border have delivered better public services, a new poll has found.
A poll by Survation for True North Advisors found just 27 per cent said the level of personal tax in Scotland provides value for money in public services, compared to 51.7 per cent who said the opposite.
The findings come as Finance Secretary Shona Robison prepares to set out the Scottish Budget in Holyrood this afternoon, outlining the Scottish government’s tax and spending plans for the coming financial year.
Income tax rates in Scotland have diverged from the rest of the UK since 2017, with business leaders increasingly sounding the alarm in recent years.
Anyone earning more than £30,318 currently pays more income tax in Scotland than if they lived south of the Border. Someone earning £50,000 pays £1,527 more.
First Minister John Swinney has already ruled out changes to income tax rates in today’s Budget, but the thresholds at which people start paying more could be raised.
The new poll also found just 36.7 per cent believe the Scottish Government has the right policies in place to make Scotland a competitive place to do business, compared to 41.5 per cent who said the opposite.
Sandy Begbie, chief executive of Scottish Financial Enterprise, said: “Scottish Financial Enterprise has been warning for years that Scotland needs to become a more competitive economy if we are going to attract the investment and growth we so desperately need – and this survey shows the public agree.
“In recent years, both the Scottish and UK governments have introduced tax changes and other policies that have undermined business efforts to deliver this growth, and this week’s Budget is an opportunity to start addressing that.
“As this survey shows, the public do not believe we are receiving higher quality services in return for higher taxes. The deteriorating quality, in particular in the NHS and education, are impacting businesses both in the day-to-day operations and longer-term planning.
“As we heard at Scotland’s Global Investment Summit in October, there is huge international interest in investing in Scotland, but we need stable, competitive economic policies that reassure businesses looking to create more high-wage, high-skill jobs here and across the UK.
“This week, the Scottish government has an opportunity to show that it is listening to the public and to Scotland’s business community by delivering a Budget focused on creating jobs, eliminating public sector waste and turbo-charging economic growth.”
The looming Holyrood election in May will form the backdrop to today’s Budget, with the SNP expected to unveil measures targeted at ‘middle Scotland’, such as an expansion in free childcare.
Andrew Liddle, a senior adviser at True North, a public affairs and consultancy firm, said: “With devolved elections less than five months away and the UK government’s economic record under increasing scrutiny, this polling shows tax and growth are likely to be key issues for voters in the race for Bute House.
“In its Budget this week, the Scottish government has the opportunity to show it is taking these concerns seriously and to set out how it will do things differently.
“With Scottish Labour already committing to narrowing the income tax gap with the rest of the UK - as well as Reform UK offering an unapologetically pro-business approach - how to kick-start Scotland’s sluggish economy is likely to be a central feature of the campaign ahead.”
Meanwhile, Scottish Labour leader Anas Sarwar on Monday set out a need to “unleash homebuilding” across Scotland and refuted claims he has handed SNP ministers a bank cheque for the Budget.
Mr Sarwar told The Scotsman that a focus on ramping up housebuilding and a strategy to retrofit homes would provide “structural, meaningful change for families”, amid a warning the current system is “trapping people in an uncertain housing market”.
But he was forced to deny claims his party is allowing Mr Swinney’s government to have free rein over the Budget, despite being a minority government.
On Thursday, Mr Sarwar confirmed Labour will not vote down Shona Robison’s Budget, essentially securing the SNP’s spending plans through Holyrood, despite them not yet being published.
Mr Sarwar said the Budget would have passed regardless, with support from the Greens or Lib Dems, although Labour’s move means SNP ministers do not need to placate other parties for their spending plans to pass.
The Scottish Labour leader told The Scotsman any suggestion his party was handing the SNP a blank cheque was “not true”.
He said: “The discussions have been happening for weeks between the government and other political parties. We have engaged in those discussions in good faith, as have the Greens and the Lib Dems, I believe.
“But let’s live in the real world. The Greens and the SNP are in a symbiotic relationship. They both want to see a continuity of John Swinney in government. They both want to see the SNP remain in office and a 19th John Swinney budget is not going to change the outcomes for the country. A new government can and will and that’s what I’m relentlessly focused on.”
Ms Robison and Mr Swinney has suggested the Budget, alongside boosting the NHS, will focus on measures to alleviate the cost-of-living crisis.
The Scottish Government has set a flagship target to deliver 110,000 affordable homes by 2032, but just over 31,000 have been delivered so far.
Asked by The Scotsman what cost-of-living priorities should be looked at, Mr Sarwar said: “If you look at what’s happening around housing, so much of the pressures that come on individuals come either from mortgages, rents or running costs of a home - whether that be their energy bill or anything else”.
He added: “If you look at the fall in home-building, not enough support going into retrofitting homes, that is trapping people in an uncertain housing market.
“That’s why we need to unleash homebuilding across the country and having a full programme of retrofitting of homes is going to be really crucial.
“It’s not just a sticking plaster on the cost-of-living, it’s a structural, meaningful change for families. Sadly, I don’t think that kind of proposal is going to come from this government.”
Speaking in Coatbridge alongside local Holyrood candidate, Kieron Higgins, Mr Sarwar added that there is a need to “prioritise getting growth in our economy” and “using the fruits of that growth to invest in our public services but also reduce the tax burden for people in the country”.
He said: “That is also not just a sticking plaster for one year, that is something that focuses and supports people for the long-term as well.
“These areas we’re exploring and we’ll be setting out more as we get closer to the election.”
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