New analysis suggests Scottish tax changes may have reduced revenues

Responding to analysis from the Institute for Fiscal Studies suggesting that increases in Scotland’s top rate of income tax may have reduced revenues, Scottish Liberal Democrat economy spokesperson Willie Rennie said:

“When these tax changes were introduced I noted that the government would need to take careful note of the impact on behaviour.

“I have heard from medics and dentists who feel unfairly penalised by this legislation. Meanwhile Scotland’s business community has warned that higher taxes risked investment heading to Carlisle and Newcastle instead.

“This IFS analysis suggests that these fears may have been well founded.

“Each individual change the Scottish Government makes may seem logical on its own but the cumulative impact of rising taxes and increasing red tape is strangling economic growth and hurting the public finances.

“The forthcoming budget must give no fresh reasons for highly skilled professionals to head for the exits.”