Millionaires would pocket £35,000 tax cut under Scots Tory leadership candidate's plan

A Scots Tory leadership candidate would hand millionaires a £35,000 cash boost under plans to slash taxes for the wealthy. But a part-time worker earning £12,000 would receive nothing if the Murdo Fraser’s proposals were pushed through.

Fraser is up against fellow MSPs Russell Findlay and Meghan Gallacher in the race to succeed Douglas Ross. Part of his pitch has been to rail against the higher rates of income tax implemented by the SNP in Government.

Six rates now exist north of the border and 48p is charged on every pound earned above £125,140. The rate south of the border is 45p.

Fraser, who backed Liz Truss for the Tory leadership in 2022, said early in his campaign he wanted a “lower taxed economy”. He clarified his plan to the Record, saying: “I would deliver a tax cut to all Scottish workers so tax rates here at every level were lower than in the rest of the UK.”

In practice, this would mean cutting the highest rate of income tax from 48p to 44p. A rich Scot earning one million pounds currently pays £419,932 tax in the top rate, but this would fall to £384,938 if the Fraser plan was accepted.

This would give the wealthiest Scots a tax cut of £34,994 a year. With no income tax levied on the first £12,570, an individual earning below this amount would not receive a penny from the Fraser plan.

SNP MSP Kevin Stewart said: “The Tories have shown time and again that they can’t be trusted with our economy or public finances, and this suggestion from a would-be Scottish Tory Leader proves that again.

“Unfunded tax cuts for the wealthy – that’s always their priority. The SNP Scottish Government have a fair and progressive approach to taxation, and this allows us to support the most vulnerable households and our public services.

“While the Scottish Tories have their charade of a leadership contest, the SNP are focused on delivering for the people of Scotland.”

Green MSP Ross Greer said: "Not content with the economic devastation the Tories have inflicted from Westminster, Murdo Fraser wants to bring Liz Truss economics to Holyrood.

"Scotland has the most progressive income tax system in the UK as a result of years of careful work by the Scottish Greens. Our public services are better off to the tune of £1.5 billion every year because we expect those on higher incomes to pay a bit more.

"Murdo's proposal would mean the opposite, devastating budget cuts of far more than £1.5 billion to services like the NHS. It's no surprise that a Tory leadership candidate is more interested in tax cuts for his rich mates than in protecting Scotland's health service.

"The last thing Scotland needs is Liz Truss-style unfunded tax cuts and more public service cuts, but it seems that is all the Tories have to offer."

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