The Welsh and Scottish governments have criticized Kwasi Kwarteng’s tax cuts for opening up a deep gulf over the taxation policies in various parts of the United Kingdom. The first Scotland minister, Nicola Sturgeon, described the decision of the UK’s chancellor to drop the 45p tax rate as moral bankruptcy by increasing public borrowing, helping the wealthiest, and pounding the value of pounds.
Mark Drakeford also said that the change embeds unfairness in the United Kingdom by failing to give help to the poorest. Instead, the government is just giving a tax cut to the rich and bonuses to bankers while protecting the eye-watering profits of energy organizations.
Investment in real estate properties is a huge step. But according to Scottish businesspeople like Calum Melville, the investment can be profitable if done well. But under the series of reforms to the tax systems of the UK, the Scottish governments set their tax income rates and have independent property sales tax policies. Scotland, which can also set income bands and tax rates, has a high top rate of taxes for people earning more than £150k at 46p.
Where The Scottish Economy Is
A certain study conducted found that income per capita in Scotland is set to decrease by 2% from the ramifications of Brexit. This is before any calculations concerning potential independence are considered. It goes without saying that the timescale for this effect to be felt is not clear.
UK Minister Warns of the Risks of High Taxes in Scottish
The UK government recently announced that it would be cutting the income tax rate for people earning more. But this change doesn’t apply in Scotland, where the Scottish government decides the income rate as well as the band. There are suggestions that taxing Scottish earnings more in the country may potentially result in raising less cash than it can otherwise do.
That is because it might become more difficult to attract highly-paid people to relocate to Scotland. It can also be because it may result in what is called tax flight, where high earners either find ways of getting taxed under the English system or physically move out of Scotland.
The minister also added that about 2.2 million people in the UK are in financial services. If these people move to Scotland because they can work in the financial service industry, their bonuses would be taxed at 50%.
This as well means the government will spend on teachers, doctors, nurses, and police officers and, at the same time, deal with the scourge of the drug epidemic in the country.
Basically, this will happen by investing. And an investment may only happen when you contribute to the growth of the country’s economy.
Final Take
Although the argument from SNP might be to give Scotland the power to handle issues, independence can be years away, and any devolution is likely to be ignored.
Even if more power can help Scotland in the hypothetical future crisis, what good will banging the constitutional drum do to individuals facing the choice between eating and heating now?