John Swinney has come under fire after suggesting the UK Government could have avoided a “fiscal nightmare” if it had followed the SNP’s approach of raising taxes on higher earners. Writing in The Scotsman, the First Minister argued that Sir Keir Starmer’s Labour leadership might have sidestepped its recent welfare policy turmoil had it shown similar “courage”. His remarks followed a major U-turn by Labour on Universal Credit and disability benefit reforms, prompted by internal dissent.
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Opposition parties reacted with outrage, with the Scottish Conservatives branding Swinney’s comments “deluded” and “offensive” to Scots already paying higher income tax than people elsewhere in the UK. Craig Hoy, the party’s shadow finance secretary, criticised the SNP’s approach, arguing that it prioritised tax hikes over much-needed reform of Scotland’s “bloated” public sector. He claimed the SNP’s policies were stifling economic growth and putting household finances under increasing pressure.
Data show that Scottish workers earning more than £30,300 contribute more in income tax than their English and Welsh counterparts, with the disparity increasing significantly at higher income levels. A person earning £50,000 pays £1,528 more annually in Scotland, while those on £100,000 and £125,000 face additional payments of £3,332 and £5,221 respectively—representing a 7 per cent drop in after-tax income compared to the rest of the UK.
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Earlier in the week, Swinney labelled Westminster’s welfare reform plans “absolutely appalling”. While proposed changes to personal independence payments (Pip) would not have applied directly in Scotland due to devolved powers, they could have had knock-on effects on Holyrood’s budget. Scottish Secretary Ian Murray warned that without reform, the welfare system risks becoming financially unsustainable and would continue to exclude many from the workforce.
