Scotland Says It Won't Pass on Planned Tax Cuts in U.K. Budgetby
Scotland said it will block changes to income tax put forward in the U.K. budget and freeze rates and the threshold for higher earners.
The government in Edinburgh, which took control of income-tax rates and a proportion of the revenue this year, expects the decision not to pass on the cuts will generate 1 billion pounds ($1.4 billion) by the 2021-22 financial year.
“In setting out our proposals we have balanced the need to invest in and support our public services with a recognition that many households are still facing difficult economic challenges, and with the need to grow the Scottish economy,” Scottish First Minister Nicola Sturgeon said in Glasgow today, according to an e-mailed statement.
Chancellor of the Exchequer George Osborne last week said he planned to raise the threshold at which earners pay a higher rate of income tax. He since was criticized by members of his own Conservative Party for helping richer Britons while cutting social security benefits for others, including the disabled.