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Scott calls for cut in income tax Scott calls for cut in income tax
(about 10 hours later)
The new leader of the Scottish Liberal Democrats is to call on the Scottish Government to bring in an emergency income tax cut to help families. Scottish Liberal Democrat leader Tavish Scott has called on Holyrood ministers to bring in an emergency income tax cut to help struggling families.
Tavish Scott wants a 2p in the pound cut in income tax to help families suffering from the economic slowdown. Mr Scott said a 2p in the pound cut would save the average Scot more than £300 a year, easing the pain of the current economic slowdown.
Under the devolution settlement, Holyrood has the power to vary income tax by up to 3p in the pound. He issued the challenge during a speech to the UK Liberal Democrat conference in Bournemouth.
The challenge comes as Mr Scott addresses the UK Liberal Democrat conference in Bournemouth. Scottish families were being hit hard by rising prices, he said.
BBC Scotland Westminster reporter David Porter said: "With a new Labour leader in Scotland and the continuing controversy over Gordon Brown's future, the Scottish Liberal Democrats know they'll have to work hard to raise their profile. The Scottish Parliament has powers to vary income tax by up to 3p in the pound.
"Hence Tavish Scott has chosen an issue he believes will be politically popular. Mr Scott told delegates that energy costs were up by half, food costs had increased by £30 a month and inflation was at its highest for 16 years.
"He is calling on the other parties at Holyrood to support his calls for an emergency 2p cut in income tax in the next budget. "We can't let this go on," the Shetland MSP said.
"Mr Scott says this would put more than £300 in the pocket of the average Scottish taxpayer. "We can't turn our backs. We've got to find ways to help people out, because we know things are going to get worse."
"He says that many people in Scotland are being hit hard by the rising cost of living and this measure would offer immediate and practical help."
Most taxation matters are dealt with by the Westminster, but Holyrood does have limited tax varying powers, although it has never used them.