Humza Yousaf reaches final decision on raising income tax for wealthy Scots

dailyrecord.co.uk:

Humza Yousaf’s Government has reached a final decision on whether to raise income tax for higher earners in next week’s Budget.His Cabinet Secretaries are said to have agreed a position days ago after a robust series of discussions.The SNP-led Government is grappling with how to fill a £1bn black hole ahead of their annual tax and spending plans.One of the ideas under consideration for months has been creating a new tax band for better off Scots.Drawing on research from the STUC, Yousaf earlier this year backed the principle of a 44 per cent tax band for incomes between £75,000 and £125,140.One of the drawbacks has been claims the revenue associated with a new band has been exaggerated.The Record understands the First Minister’s colleagues have been weighing up the move this month, including at two Cabinet meetings last week.A source said a decision was made last week and the appropriate fiscal body has been informed.Departmental cuts are also expected to be included in the draft budget, which will be delivered by Finance Secretary Shona Robison.The First Minister’s announcement of a council tax freeze, which will cost hundreds of millions of pounds, has made the financial situation even tighter.Meanwhile, The Times newspaper reported that a group of Cabinet Secretaries are co-ordinating with each other on key issues at the top table.These were Transport Secretary Mairi McAllan, Education Secretary Jenny Gilruth and Rural Affairs Secretary Mairi Gougeon.To sign up to the Daily Record Politics newsletter, click here.