Kate Forbes hints at end to SNP tax rises as she claims 'reputation matters'

The Deputy First Minister criticised the tax increases on higher earners introduced under former first minister Nicola Sturgeon and expanded upon by her successor Humza Yousaf, claiming the rises did little for Scotland’s economy.

However, Ms Forbes, who previously ran against Mr Yousaf for the leadership, insisted tax was not a “dominant issue” raised by potential investors in Scottish business.

She said: "The signals from this Government, led by John Swinney, is you cannot continually raise tax.

"The tax strategy just published explicitly commits us to creating a stable environment where we don't introduce unexpected tax increases.

"I accept that we need to keep our tax policies under review, and what you've heard from this Government is a commitment not to continually raise tax and an understanding that our reputation matters.”

Speaking to the Sunday Times, Ms Forbes, who is also the Cabinet secretary for economy, claimed that despite the Government's delivery problems such as with island ferries or the defunct bottle recycling scheme, the pledge made to stabilise the economy had meant renewed interest from overseas investors.

She said: "The opportunities for growth are endless. I don't think Scotland has ever been as well positioned as we are now to reap the benefits and I'm working in a way that allows me to get stuff done."

Ms Forbes, who was promoted by Mr Swinney to Deputy First Minister after she stood aside for him to be leader, stressed the importance of stability in boosting Scotland’s economy.

"The first job was to engage extensively with representatives of industry and trade organisations and, to a person, they said ‘don't pull out surprises from the hat, we have plans to invest, to grow, and we need a period of certainty and stability’.

"That's what we gave in the Programme for Government, certainty and stability. [It’s] also what we gave in the Budget, and it's what we gave in the tax strategy."

Turning to green transition, Ms Forbes argued moving away from fossil fuels provided big opportunities for growth.

She said: “If you consider the sectors that are most likely to drive national growth — energy, net zero, green industries, technology, advanced manufacturing, life sciences - they are all sectors where Scotland has strengths and huge potential.

Right now we have vast amounts in the pipeline for offshore wind alone, never mind what is in the pipeline for pumped hydro storage - the figures are eye-watering globally.

“I’ve long been a believer that for a small nation to flourish, you shouldn’t try to do everything and compete on every front. You pick a few strengths and really pursue them in a way that puts you on the map.”

Ms Forbes also distanced herself from the suggestion Mr Swinney would eventually stand aside, clearing the way for her to become first minister.

She said: “I am very content in my current roles and have no interest in anything beyond supporting the current First Minister.”

Responding Scottish Conservative shadow cabinet secretary for finance Craig Hoy MSP said: “Kate Forbes is shamefully missing the point.

“Businesses, local authorities, and people across Scotland have been hammered by the SNP’s high tax regime, compounded by harsh budget cuts which have slashed public funding for key services.

“If the Deputy First Minister wants to bring stability and certainty to Scotland’s economy, she must adopt our common sense tax proposals which would put an end to the SNPs high taxes and deliver tax cuts for people and businesses across Scotland.”