John Swinney rejects Conservative call over income tax rate

http://www.bbc.co.uk/news/uk-scotland-scotland-politics-32950726

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The SNP has rejected a call from the Conservatives to rule out raising income tax in Scotland higher than the rates and bands in the rest of the UK.

Scottish Conservative leader Ruth Davidson challenged the SNP to match her party's pledge on the use of new tax powers for Scotland.

SNP Finance Secretary John Swinney told the BBC he would not make such a promise "today".

He said his party's tax plans would be set out before the Holyrood election.

Scotland will get complete control over income tax rates and bands as part of the powers package contained in the Scotland Bill, which was published on Thursday.

Ms Davidson has vowed that her party would never raise income tax in Scotland higher than the rates and bands in the rest of the UK, and challenged other Scottish parties to do the same.

Asked on Sunday Politics Scotland whether he would match the pledge, Mr Swinney said: "I can't give that pledge today, and I won't give it."

'Principled position'

He said his party would "give consideration" to varying income tax rates and bands as it drew up its manifesto for next year's Scottish Parliament election, adding that his government already had a strong track record on using new tax powers.

Mr Swinney added: "What we've demonstrated already with the tax powers that have been deployed to us on stamp duty and landfill tax is that at the first available opportunity the Scottish government has acted on those taxes.

"On stamp duty we've changed it very radically to reflect our principled position that we believe tax should be structured on the basis of ability to pay."

Following its landslide victory in the general election, the SNP has been pressing the UK government for more powers than those already promised by the Smith Commission, which followed the independence referendum.

Mr Swinney said powers over employment, wealth generation and welfare would be sought.

'Loud and clear'

However, Ms Davidson said the debate was moving now from what new powers Scotland should have, to how best to use what has already been given.

She said: "I believe we need to send an early signal to reassure investors, firms and families that new taxes in Scotland will not simply mean higher ones.

"Let's hear it loud and clear from the SNP, Labour and the Lib Dems - no higher taxes in Scotland."

Elsewhere, Mr Swinney denied reports that his party had dropped its push for Scotland to have so-called full fiscal autonomy - power over all tax and spend.

He said: "We acknowledged in our manifesto that [full fiscal autonomy] would take some time to deliver."

"In the short term our priority would be to secure some of the economic powers that would enable us to strengthen the economic performance of Scotland, particularly over things like employment policy and the minimum wage."