Scottish income tax threshold to be frozen as SNP Government tries to raise extra funds

dailyrecord.co.uk:

The Scottish Government is in line to freeze the threshold for the higher rate of income tax in the Budget today.Finance Secretary Shona Robison is expected to say the £43,663 start point will not rise in a bid to reduce a £1.5bn black hole.The move will affect middle income workers like teachers, police officers and NHS staff through “fiscal drag”.Robison will this afternoon deliver one of the Government’s most difficult Budgets in the devolved era.She was believed to be facing a £1bn deficit, but commitments on public sector pay, NHS waiting times and freezing the council tax have seen the figure jump to £1.5bn.Deep cuts to department budgets are in the offing, but so are income tax rises for the better off.Holyrood insiders expect a new tax band to be created on earnings between £75,000 and £125,140.However, there is also speculation that more taxpayers will pay the 42pc ‘higher’ rate currently levied on income between £43,663 and £125,140.She is tipped to freeze the threshold at £43,663 instead of increasing it in line with inflation.During a visit to RAF Lossiemouth in Moray on Monday, Prime Minister Rishi Sunak said it would be “very disappointing” if the Scottish Government chose to increase the tax divergence with the rest of the UK.“Ultimately, it’s the Scottish Government that are responsible for their own finances – it’s already the highest-taxed part of the UK and obviously it would be very disappointing to see that tax burden continue to rise in Scotland,” he told journalists.Asked about the Prime Minister’s comments, Ms Robison said: “What I would say to Rishi Sunak is he has got a bit of a cheek, pitching up in Scotland to say anything given his autumn statement is deprioritising public spending.“To have a