Skip To The Main Content
02 February 2017

FSB on Budget Tax Deal

Reference number: SPUR0202

The Budget deal struck today in the Scottish Parliament will see the threshold for the higher rate of income tax frozen at £43,000 for Scottish taxpayers, while it rises to £45,000 in the rest of the UK.

Colin Borland, head of devolved nations for the Federation of Small Businesses, said: “Our instinct is always to simplify the tax system wherever we can, not complicate it.  And we haven’t properly explored the full practical consequences of Scottish divergence from the rest of the UK.  So we would have preferred to keep both rates and thresholds aligned.

“At a time when weak consumer demand and the sluggish state of the domestic economy are dominating small business owners’ worries, it would have made sense to put some money into their customers’ pockets.”

He added: “Of course, if we want good public services, we need to pay for them.  But, as we set out to the Finance Committee in our budget evidence, this needn’t be a choice between slashing services and hiking taxes.  There is plenty of scope for smarter, more efficient working – even in the relatively modest areas of government with which we’re familiar.”