First Minister proposes income tax status quo for next Parliament

Income tax rates in Scotland would remain as they are today, but the higher rate threshold would not rise as proposed by the UK Government, under proposals set out by First Minister Nicola Sturgeon today.

Setting out her plans for tax rates during the next session of the Scottish Parliament, Ms Sturgeon said the personal allowance would rise to £12,750 by 2021-22, assisted if necessary by the creation of a zero rate band, but that the higher rate threshold would be frozen in real terms and increased only in line with the consumer price index in 2017-18 and by no more than inflation until 2021-22.

The SNP had previously indicated it favoured a top rate of 50p, but today's announcement sets it apart from its Labour opponents.

Today Ms Sturgeon also revealed Scottish Government analysis that increasing the additional rate for top earners beyond the top UK rate of 45p could result in a revenue loss to the Scottish Government. However the analysis will be updated each year to inform decisions in future budgets.

She claimed that no taxpayer would see their bill increase as a result of her proposals.