Families and firms across Scotland are issuing a desperate plea for support as they battle to stay afloat amidst a perfect storm of escalating costs. With the Scottish budget due this week, calls are mounting for immediate intervention to tackle the deepening financial crisis.
The Tax Squeeze on Scottish Workers
Scottish workers already face the highest income tax rates in the United Kingdom. A middle-earner on approximately £50,000 per year pays around £1,500 more in tax than their counterpart in England. Critics warn that without a reversal of the planned freeze on tax thresholds—a policy supported by both the SNP and Scottish Labour—the majority of full-time workers will be dragged into higher tax bands by 2029.
This would mean the average full-time employee, not just high earners, forking out an extra £1,800 annually by the end of the next Scottish Parliament term. The Scottish Conservatives argue that such high taxation would be more palatable if public services were thriving, but they contend that under First Minister John Swinney, key areas like the NHS and education are declining in quality.
Spending, Benefits, and the Business Burden
The SNP government is spending £1.3 billion more on benefits annually than it receives through the Treasury block grant. Projections suggest Scotland's total welfare bill could approach £10 billion by 2030, with taxpayers expected to foot the bill. Meanwhile, the administration's pledge to save £1 billion on government costs has been undermined by significant increases in public sector salary expenditures.
The business community is facing its own existential threat. A major revaluation of business rates, set for April, could deliver crippling increases, with some hospitality venues reportedly facing a 400 per cent rise in their bills. Industry leaders warn this could be "Armageddon" for the sector.
Calls for a New Direction in the Budget
In contrast to other Holyrood parties, the Scottish Conservatives are proposing a budget focused on lower taxes and fairer benefits. Their demands for this week's financial statement include:
- Increasing both the higher rate tax threshold and the starter threshold for paying tax.
- Cutting the basic rate of income tax to 19%.
- Implementing an immediate pause on the business rates revaluation.
- Providing full rates relief for hospitality businesses in properties valued up to £100,000.
- Extending the Small Business Support Scheme to offer 100% relief for properties worth up to £20,000.
The party argues these measures alone could save Scottish workers up to £718 a year and are the bare minimum required to stimulate growth. They accuse the SNP of a deep-seated "hostility to business" that, combined with Labour's national insurance hikes from Westminster, is paralysing the Scottish economy.
With Scottish Labour leader Anas Sarwar stating he will not oppose the SNP budget, the Conservatives position themselves as the sole opposition offering a clear alternative. They warn that failure to heed these calls risks killing off thousands of Scottish jobs, presenting what they describe as a "bleak and stark reality" after nearly two decades of SNP governance.
