In response to the SNP plans to increase taxation for the better off, in order to improve public services and for the ring-fenced NHS funding promise that averted the junior doctors’ strikes, UK Labour convenor in Scotland and beneficiary of his mother’s low wage food production business, Ana Sarwar has come out against fair taxes in a sad attempt to win more former Tory voters.
Here is the answer to his notion of ‘families’ being hammered:
On average, the devolved income tax and benefit measures introduced since 2017 will decrease Scottish households’ incomes by £210 (0.5%). However, new benefits and top-ups to UK-wide benefits mean that, by April, the poorest tenth of Scottish households are set to have incomes £580 (4.6%) per year higher than they would under the system in England and Wales. Meanwhile, higher taxes will reduce the incomes of the richest tenth by £2,590 (2.1%) per year compared with the system south of the border.
https://ifs.org.uk/news/scottish-budget-changes-tax-and-benefit-system-widen-gap-rest-uk-higher-taxes-and-more
Talking-up Scotland 'Albatraz' 
”Interesting ” says Paul Hutcheon of the Daily Rancid at the breathtaking hypocrisy or cowardice of Sarwar and fair taxation !
This is a ”newspaper ” that supposedly supports the working class but promotes a millionaire capitalist masquerading as a Labour man who wants the poor to suffer in order to protect the Middle-class . Rupert Murdoch would be proud of their stance !
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I had a neighbour some years ago who was Father of Chapel at the Daily Record. He was quite clear that as far as the owners – this was pre Robert Maxwell – were concerned the Record being a ‘Labour paper” was purely to get sales from that section of the populace. Socialism did not come into it. Indeed, it was one of the directors of the Mirror Group, Cecil King, who tried to organise a coup involving Lord Mountbatten, to overthrow the dangerous commie, Harold Wilson, because his government was actually putting into practice redistributive policies. Many in the cabinet had served under Attlee from 1945/51 and had been involved in things like setting up the NHS.
When was the last time you heard a senior Labour politician mentioning socialism, social democracy, redistribution, the common good, social security in the Beveridge/Young concept?
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Well at least we will not be getting Sarwar doing a Starmer and speaking of his HUMBLE background via his father ONLY being a simple ‘working’ man…..
Mind you look at him, Sir Keir Starmer, now….from supposed ‘humble’ beginnings to now one of the WEALTHY elite….sucking up to the other wealthy elites….lend me your ears…I mean GIVE me your money (donations)….
AND instead of helping the working man….he is intending to help those who are associated with keeping the ‘working man’ in his , according to them, rightful place (as in down)….via taxes for the poor BUT not so much for the rich…..or as Labour once promoted ‘For the FEW not the MANY’…..same (Few) ones New New Labour hope to gain support (donations) from going forward….while the MANY will be served up platitudes and slogans via New New Labour….
‘Oh, what a tangled web THEY weave, when first THEY practice to deceive….us Scots….again’…..now that is a slogan that COULD be associated to thwart any political progress being made by New New Labour in Scotland…..Amen to that.
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It’s become the norm in commentaries from progressive, left of centre sources in England to find highlighted how the current Labour leader, Keir Starmer has shifted his position on a raft of policy issues since the UK Labour leadership contest. His shifts have been towards closer alignment to what Labour believes will be acceptable to Tory voters.
A similar critique of the current, changed policy positions of the Labour Party in Scotland has arguably been less visible, less intense. Thankfully, here on TuS the politics of the leadership of Labour in Scotland are regularly exposed.
Regarding Mr Sarwar’s current ‘presumption against any increase in income tax’, it seems relevant to remind ourselves of his stance on this tax during his bid for leadership of the Scottish branch back in 2017 (with my emphasis).
From 25 October 2017 – https://inews.co.uk/news/politics/anas-sarwar-ill-cut-tax-bills-million-scots-99681
‘The MSP, who is running against Richard Leonard for the party’s top job in Scotland, is proposing what would be THE LARGEST SHAKE UP OF THE NATION’S TAX SYSTEM SINCE DEVOLUTION.
‘… HUNDREDS OF THOUSANDS OF PEOPLE WITH SALARIES OF £35,000 OR MORE WOULD BE FORCED TO PAY SIGNIFICANTLY HIGHER SUMS TO HMRC, WITH TOP EARNERS PARTICULARLY BADLY HIT.
‘Mr Sarwar said the new system would raise an estimated £700m a year, ALMOST HALF OF WHICH WOULD BE USED TO STOP ANY FURTHER CUTS TO LOCAL SERVICES IN SCOTLAND.’
‘He .. wants to INCREASE THE ADDITIONAL TAX RATE PAID BY THE NATION’S TOP EARNERS FROM 45P TO 50P – AS WELL AS DROPPING THE THRESHOLD AT WHICH IT BEGINS FROM £150,000 TO £100,000.
“I don’t believe we can rescue our NHS and schools on the backs of the poorest,” Mr Sarwar said during a speech to supporters in Edinburgh. “I BELIEVE IN REDISTRIBUTION OF WEALTH AND ASKING THE RICHEST IN OUR SOCIETY TO PAY THEIR FAIR SHARE.
“And to be truly progressive, I MAKE NO APOLOGY FOR ASKING THE RICHEST 2 PER CENT IN SCOTLAND TO PAY MORE.”
‘Under his plans, the basic rate and higher tax rates would also rise slightly to 23p and 43p respectively, but only workers earning more than £28,000 would feel the effects.’
‘Mr Sarwar’s tax plans will be viewed as an attempt to outflank his opponent Mr Leonard on tax, who is generally seen as the more left wing candidate and is an ally of Jeremy Corbyn.’
And if anything the shiftiness gets worse as the same news article reports: ‘During his speech Anas Sarwar took aim at his rival’s record on Brexit, reminding the audience that Mr Leonard voted in favour of the triggering of Article 50.
‘In a dig at Mr Leonard’s perceived closeness to Mr Corbyn, he said: “No-one can want to lead AN AUTONOMOUS Scottish Labour Party and WAIT FOR PERMISSION TO SUPPORT MEMBERSHIP OF THE SINGLE MARKET AND THE CUSTOMS UNION.”
So said the ‘leader’ who is now shifting his ground and abandoning principles on tax – not to mention shifting on the single market – in order to retain the approval of HIS leader, the REAL leader of the Labour Party whose prime interest is in securing the votes of former Tory voters in England!
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And while on the topic of Mr Sarwar’s greatest hits, let’s jump from 2017 forward to 2021. This is from a BBC News website article dated 8 February 2021 headlined ‘Scottish Labour leadership: Lennon and Sarwar clash on indyref2 mandate’ (with my emphasis).
‘Both contenders suggested that Scottish Labour could PUSH FOR INCOME TAX RISES.
‘Ms Lennon said any changes would be part of an overall review, while MR SARWAR CLAIMED HE WOULD WANT TO BRING IN MORE MONEY TO THE PUBLIC PURSE BY INCREASING THE AMOUNT PAID BY TOP EARNERS.
‘He added: “I think we need a progressive tax system where we get the powers we need to do a progressive tax system. “I THINK PEOPLE CAN, IN THAT TOP BRACKET, PAY MORE.”
‘The Glasgow MSP suggested A 5% TAX RISE FOR THOSE EARNING MORE THAN £150,000 A YEAR AND 2% FOR THOSE OVER £100,000.
‘Ms Lennon said there needed to be a “national conversation” about the tax system. The Central Scotland MSP added: “I think it needs to be looked at, I’m not going to rule that out. “THERE ARE TOP EARNERS IN THE COUNTRY WHO CAN AFFORD TO PAY MORE. But WE HAVE TO LOOK AT THE WHOLE BASKET OF TAXES.”
(The ‘whole basket’? Of course THE problem is that what’s in the Scottish Government’s fiscal basket is extremely limited – by Westminster’s – and Labour’s – design!)
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https://www.gov.uk/government/statistics/local-alcohol-profiles-for-england-lape-march-2023-update/local-alcohol-profiles-for-england-short-statistical-commentary-march-2023
“In 2021, there were 20,970 deaths that were related to alcohol in England, equating to a rate of 38.5 per 100,000 population. Of these 7,872 deaths were from chronic liver disease equating to a rate of 14.5 per 100,000 population and 7,556 deaths were wholly caused by alcohol equating to a rate of 13.9 per 100,000 population.”
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I, too, am generally hostile to increases in INCOME tax, because it impacts mainly on those who depend on income from employment. The Tories and their media chums have focussed the argument about the meaning of ‘tax’ as being, principally, INCOME tax. Wealth and property taxes, if they are discussed at all, are dismissed with little discussion as £1250 handbag Reeves has done. Wealth mainly comprises property and land and these mainly cannot be moved offshore. It is land and property which determines wealth and it has been hoarded by a few people since the ancestors of most of them stole it. By taxing land, property and other wealth, we can force them to be redistributed more equitably and release the Community value that has been locked away. The sums raised from this and by equalising the rates of tax on investments with income tax, will shift the burden significantly from most of us to the few very wealthy, who will still be comfortably off.
I think it is right that those of us who can, actually pay some income tax as part of our contribution to society. However, it should be progressive as the Scottish Government’s proposals are. Essentially, it is to shift, in a small way, the burden on to people like Sarwar. His income, even after increased tax will still give him a comfortable living.
There are some like Mercedes Villalba in Labour who understand this and her land bill should be supported. However, I do not see her having a long career in the Starmer and £1250 Handbag party.
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“Interesting” given that Starmer Inc’s latest U-turn on wealth taxes on behalf of Labour has dropped clangers all over the place, perhaps ‘drifting’ would be a more appropriate motoring term for Labour policy development these days, even if uncomfortably close to Sarwar’s grifting.
Richard Murphy’s article in the National on wealth taxes was preceded by a synposis ‘podcast’ between Elliards and Murphy, where RM pretty much blew the smoke and mirrors of “new legislation” away.
Bringing the %ages in the existing tax system into line such that the ludicrously rich no longer get special treatment would be a simple solution to the current imbalance.
It’s long overdue time this “trickle down economics” fairy was finally buried….
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EVEN MORE POVERTY FOR THE SCOTS apart from orange,red, an blue Followers
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PS – The HMS James Cook #1 story for Scotland and Scotland/Politics, still listed as 1 hour old 3 hours later, “Scale of concrete risk in Scottish schools not yet known” https://archive.ph/6sYkT, with Lib-Dems doing the ambulance chasing…
What makes ACH-him’s pearl-clutching and BBC amplification so ridiculous, is that RAAC used ceased in the 1990s when the problems over rebar bond were found.
We’re talking of schools over 30 years old, which on discovery of the RAAC problem in the 1990s were rigorously checked in Scotland by the then Scottish Office.
Yet it does not appear to have occurred to the sleuths at Pacific Quay or ACH-him’s gophers, that rather than “BBC Scotland News has contacted all of Scotland’s 32 councils to ask whether any of their schools contained RAAC”, a quick call to their pal Alister would result in one of his minions retrieving the records within the hour…
Presumably they will have a further shock revelation to obscure the big march tomorrow, such as “Titanic has sunk”….
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Have a look on utube on how a company director pays themselves.
Basically their pay is equal to the tax free ratem some £12k a year or £1k a month, nil income tax and minimum NI.
Rest of the pay is ‘Dividends’ which are taxed at 5% after the £2k tax free allowance.
So instead of 19% starting rate in Scotland for low earners, they are taxed at 5%.
We should all have a PLC to do the same but PAYE is the rule.
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And whatever tax is paid on dividends taken by directors of a limited company registered in Scotland, ALL of the tax is taken by HMRC to feed the coffers of The Treasury and the Westminster government – even if ALL the limited company’s revenue derives from customers in Scotland. Such is the ‘quality’ of the devolution deal!
So any success in starting limited companies in Scotland and success in companies registered in Scotland growing and prospering will benefit the tax taken by and for the UK government so long as the latter makes the tax rate on dividends attractive relative to PAYE rates and continues to exclude tax on dividends from the devolution settlement.
As I noted earlier in this btl thread, the Scottish Government’s fiscal basket is extremely limited – by Westminster’s – and Labour’s – design!
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Scotland has to pay loan repayments on monies not borrowed in Scotland. £Billions. Scotland to pay for HS2, Hickley Point, HS2, Trident etc. A total of absolute waste. UK Gov fund decommissioning nuclear. £13Billion+ a year for ten years. It could increased. Scotland loses £Billions to tax avasion. Loses £ Billions to Brexit. Rail lines should have been improve in Scotland and the North. To cut rail times journeys throughout Britain. To cut flights.
Scotland has to pay for illegal wars. Iraq Lockerbie, Dunblane kept secret for 100 years. Scotland has to pay for the bureaucracy at Westminster. High salaried jobs in the Mall. London H/Q.
The UK raises £631Billion. Spends £1000Billion. £125Billion on the NHS, £250Billion pensions/benefits, £100Billion Education. Not enough. Austerity. The NHS funding not increased for over ten years, £6Billion a year cut from Education. £48Billion. £18Billion cut from welfare. People cannot eat and heat. Get ill and have to wait for care. The Scottish Gov have to mitigate the cuts.
Westminster Gov borrows and spends what it likes in the rest of the UK. Scotland is not allowed to borrow but loses £Billions to Westminster poor, bad policies
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