Scotland's newspapers are divided over the implications of Chancellor Philip Hammond's Budget for the country's fiscal landscape. The Scottish Daily Mail and Scottish Daily Express have urged the SNP to abandon plans for a 'middle-class tax hike' following a £2bn 'windfall' for Scotland announced in the Budget. They argue that the additional funding should be used to avoid tax increases that could leave Scottish workers worse off compared to their English counterparts.
The Herald estimates that if the Scottish government does not adjust its tax policy, higher-rate taxpayers in Scotland could be £670 worse off next year. This is because the UK government plans to raise the threshold for the 40% income tax rate from £45,000 to £46,350 in England, while Scotland is considering increasing taxes for those earning over £31,500. Scottish Tory leader Ruth Davidson warned of a 'growing tax gap' between Scotland and the rest of the UK, urging First Minister Nicola Sturgeon to step back from the planned tax rises.
However, the Daily Record reports that Sturgeon dismissed the £2bn Budget pledge as 'smoke and mirrors', accusing the Tories of dressing up cuts as a boost. The Scottish Sun echoed this sentiment, noting that Holyrood's spending power will actually fall with inflation. The National headlined its front page 'The Big Con', claiming Scotland has been 'screwed' again by Tory budget cuts, with Finance Secretary Derek Mackay calling the Budget a 'cash grab'.
Meanwhile, The Times highlighted Hammond's £25bn giveaway aimed at countering political and economic headwinds, with extra funding for housing, the NHS, and Brexit preparations. The i described it as a 'Hard Hat Budget' amid dismal growth forecasts and a long-term productivity challenge. The contrasting interpretations underscore the political divide over the Budget's impact on Scotland, with the SNP facing pressure to either match UK tax cuts or proceed with its own progressive tax agenda.
