Business chiefs have warned the tax gap between Scotland and the rest of the UK is “exacerbating” the crippling recruitment challenges that are holding back economic growth and investment. The Scottish and UK governments were both urged to set out their long-term tax plans last night amid fears ongoing uncertainty is having a “major impact” on firms across the country. Advertisement Advertisement Sign up to our Politics newsletter Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more.
The plea was made as a new survey of hundreds of businesses found taxation had overtaken inflation as the leading area of concern. The quarterly economic indicator survey for the Scottish Chambers of Commerce (SCC), which gathered the views of 410 firms between May and June, showed taxation occupied 52 per cent of concern, with inflation on 50 per cent. Stephen Leckie, the SCC president, warned the difference in tax rate between the Scottish and UK governments may be contributing.
In Scotland, workers earning more than £28,867 pay more income tax than their counterparts south of the border, following changes from the Scottish Government, while a 45 per cent advanced rate was introduced for those earning between £75,000 and £125,140. A Scottish taxpayer earning £50,000 a year pays an additional £1,542 in income ta.
