John Swinney hints opposition to more tax rises as he reaches out to business

John Swinney hinted he is opposed to more tax rises as he reached out to business in a speech on the economy.

The SNP First Minister warned "you can’t continually increase tax" while speaking at Barclays in Glasgow.

He also said he will go "all out" to attract business and promised a “collaborative and inclusive” approach.

Swinney raised the higher and top rates of tax by 1p each when he was acting finance secretary in December 2022.

The higher rate - for those earning over £43,662 - increased to 42p. The top rate increased to 47p and the threshold was lowered to £125,140 from £150,000.

Further tax rises were included in the most recent budget when current Finance Secretary Shona Robison announced the creation of a new 45 per cent "advanced" rate of income tax for Scots earning between £75,000 and £125,140.

The threshold for paying the higher band was also frozen instead of rising with inflation.

This meant thousands more Scots are paying more tax due to the "fiscal drag".

Workers in Scotland earning £28,500 or above already paid more income tax than those living elsewhere in the UK.

But Swinney hinted that he was not in favour of further tax rises on Friday morning.

He said his Government would be "a firmly pro-business administration" and pledged decisions would only be made “after careful listening and full engagement”.

The MSP said: “My goal is to help people live happier and healthier lives with higher living standards and to help businesses boost profitability."

He added: “I will go all out to encourage investment in Scotland and I will ensure people know my government is a firmly pro-business administration.

“A partnership with trade unions and business will be at the core of my approach and through that approach and given our resources, not least incredible renewable energy, we should look to the future with hope and optimism.”

He also said achieving his goal of ending child poverty would need a "strong, successful, innovative and dynamic economy".

Swinney said: “There is no conflict in my mind on the priorities of my Government between eradicating child poverty and boosting economic growth.

“For me and for my Government eradicating child poverty and boosting economic growth go hand in hand.”

He also vowed the Scottish Government would have fewer strategy documents and more action.

Swinney said: “Government must have a can-do attitude, we must search to remove obstacles, we must offer certainty to those prepared to make commitments to our economy.”

He stressed the need for the Government to be “focused on making things happen”, adding: “Bluntly, I will demand from Government more concrete actions and fewer strategy documents.

“I want the first question we ask ourselves to be, ‘what can do?’ rather than ‘what can we write down?’”

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