BREAKING NEWS Thousands of Scots face income tax hike as SNP introduce new 45p ‘advanced rate’ and put a penny on the top band as Humza Yousaf’s government scrambles to fill £1.5billion hole in spending plans

Thousands of Scots are facing higher tax bills after the SNP today confirmed the creation of a new 45 per cent ‘advanced’ rate of income tax.

Shona Robison, the Deputy First Minister, announced the move to MSPs as she unveiled the Scottish Government’s latest budget.

The newly-created ‘advanced band’ will be placed on Scots who earn between £75,225 and £125,140.

Those who earn above £125,140 were also told they will be levied more, with the top rate of income tax in Scotland rising by 1 per cent next year to 48 per cent.

The changes came as the SNP-led Scottish Government seeks to fill a £1.5billion blackhole in its spending plans.

Shona Robison, the Deputy First Minister, announced the move to MSPs as she unveiled the Scottish Government’s latest budget

In her address to the Scottish Parliament this afternoon, Ms Robison swiped at Chancellor Jeremy Hunt’s tax cuts in his Autumn Statement last month.

‘He prioritised tax at the expense of public services,’ she said of Mr Hunt’s cut to National Insurance.

‘And, disgracefully, the motivation for this choice is, obviously, not the national interest but instead the electoral interests of the Tory Party ahead of the coming general election.

‘Be in no doubt, while Scotland remains in this union we will continue to pay the price of Westminster austerity.’

Ahead of today’s Budget announcement, Tories accused SNP leader Humza Yousaf of trying to ‘tax his way out’ of trouble after ‘astonishing mismanagement’.

Critics point out that Scotland already gets significantly more funding per person from Westminster than England.

Humza Yousaf’s party unveiled plans to increase the tax burden further today as they struggle to fill a £1.5billion hole in the books

An economic think tank warned last week that revenue from the new tax band could fall by £43million in its first year due to ‘behavioural impact’, including people moving away or finding new ways to protect their hard-earned pay.

The Fraser of Allander Institute (FAI) also disclosed SNP ministers are now facing a £1.5billion black hole in the finances.

A report by the institute noted a widening tax gap may have a longer-term impact on migration, with more people looking to move to other parts of the UK or abroad.

That would severely dent efforts by SNP ministers to attract workers to Scotland and damage recruitment in both the public and private sectors.

Former finance secretary Kate Forbes – who lost the SNP leadership race to Mr Yousaf earlier this year – has said she does not believe increasing income tax will necessarily bring in more money.

Former finance secretary Kate Forbes – who lost the SNP leadership race to Mr Yousaf earlier this year – has said she does not believe increasing income tax will necessarily bring in more money

On a visit to RAF Lossiemouth yesterday, Rishi Sunak pointed out that Scotland is already the highest taxed part of the UK.

He stressed that Westminster had already allocated the Scottish government its biggest ever funding settlement, adding that those north of the border will benefit from Jeremy Hunt cutting national insurance.

The PM said: ‘The first thing I’d say is the UK Government has provided a record amount of funding to the Scottish Government through the Barnett formula, so they’re ultimately responsible for the finances here in Scotland.

‘But I can tell you what we’re doing in the UK is controlling spending and cutting people’s taxes and that’s going to kick in for everyone in Scotland and across the UK, a reduction in the rate of national insurance from 12 per cent to 10 per cent from January.

‘That will save a typical person in work around £450 – it’s a significant tax cut.

‘So that’s what the UK Government is doing to help Scottish families with the cost of living, which we know is a priority for them.

‘But 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.’

Yesterday Ms Robison hit out at the level of funding available to Scotland.

‘In the face of a deeply challenging financial situation, this budget will reaffirm our social contract with the people of Scotland,’ she said.

‘The autumn statement was devastating for Scottish finances. The Institute for Fiscal Studies has acknowledged that it will lead to planned real-terms cuts in public service spending.’

But she added: ‘We refuse to follow UK Government spending decisions – indeed, we are doing all we can to mitigate them.

‘We are proud that Scotland has a social contract which ensures people are protected by a safety net should they fall on hard times.

‘This contract underpins this budget, with targeted funding to protect people and public services.’

Rishi Sunak goaded the high-tax SNP today as Scots brace for more hikes to be announced

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