Tax and benefits system more progressive in Scotland than rest of UK - report
dailyrecord.co.ukScotland’s tax and benefits system is now considerably more progressive than elsewhere in Britain, a report has said. The Institute for Fiscal Studies (IFS) think tank said that by April, the poorest 10% of Scottish households are set to have incomes £580 (4.6%) per year higher than they would under the system in England and Wales.MSPs will vote today (February 9) on the proposed Scottish tax bands for the next financial year, which would increase taxes for higher earners.Tax and benefit measures introduced in Scotland since 2017 have reduced average household incomes by £210 (0.5%).
But the IFS said policies introduced since 2017, such as changes to the benefits system, have particularly increased the incomes of poorer families with children.
Amongst the poorest 30%, Scottish reforms are set to raise the incomes of households with children by around £2,000 per year on average, the IFS said.The new Adult Disability Payment is forecast to increase disability benefit spending by around a fifth when it is rolled out.Research economist Tom Wernham said behavioural changes affect how much money is raised by higher taxes north of the border.
He said: “The Scottish Government has used devolved income tax and benefit policy to make the system more progressive, as well as to raise more revenue to fund public services.“These changes imply big increases in income for poorer households with children.
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