Finance secretary may have to 'revisit' no tax rise pledge

"PA Media Scotland's finance secretary has said she may "have to revisit" a promise not to raise income tax in Scotland before the next Holyrood election. Shona Robison warned she faces a possible "nightmare situation" where funding from Westminster could fall by 1bn due to decisions Chancellor Rachel Reeves could make in her upcoming Budget. Speculation is mounting that Reeves will raise income tax but she may also offset the impact on workers by cutting national insurance contributions."

"Robison is seeking an "urgent meeting" with her UK counterpart to discuss how that would affect Scotland's finances. The Treasury said it would not comment on speculation about the Budget but claimed its previous "record settlement" for Scotland meant it receives 20% more funding per head of population than the rest of the UK. In a BBC Scotland interview, Robison said she was "anxious" about announcements that will be made in the chancellor's Autumn Budget, due on 26 November."

"She said the knock-on effect on Scotland's finances meant she might have to reconsider a previous pledge not to change income tax levels when she sets her own budget in January. "We don't want to raise taxes. We've already set out in the tax strategy that we want to see that stability until the end of the parliament," she told The Sunday Show. "But in the event of unforeseen, exceptional circumstances clearly we would have to revisit that." In an unusual pre-Budget speech in Downing Street last week, Reeves said she would make "necessary choices" in her tax and spending plans after the world had "thrown more challenges our way"."

Scotland's finance secretary, Shona Robison, warned that possible UK Budget changes could force reconsideration of a pledge not to raise income tax. Decisions by the chancellor could reduce funding from Westminster by around £1bn, creating a severe fiscal impact. Chancellor Rachel Reeves may increase income tax while cutting national insurance, which could be neutral for workers but increase burdens on pensioners and landlords. Robison has requested an urgent meeting with her UK counterpart to assess consequences for Scotland's finances. The Treasury cited a previous "record settlement" and said Scotland receives 20% more funding per head.

Read at www.bbc.com