SNP Government postpones tax plan on eve of John Swinney becoming First Minister

The SNP Government has postponed plans to publish its tax and fiscal strategies after the resignation of First Minister Humza Yousaf.

Crucial economic forecasts have also been paused on the eve of John Swinney becoming FM.

Humza Yousaf was criticised after he increased income tax rates for the wealthy and used fiscal drag to push more middle class Scots into a higher bracket.

Critics believe the approach will see richer taxpayers leave the country while supporters say there is no evidence of a stampede out of Scotland.

The Government’s “medium-term financial strategy” was supposed to be published on May 30 and would have informed the debate on pro-growth policies.

A draft tax strategy was also scheduled to be published as well, alongside an infrastructure investment plan annual report.

A written answer by finance secretary Shona Robison stated: “As a result of the resignation of the previous First Minister these will need to be postponed.”

The answer added that “key policy decisions” could not take place to meet agreed deadlines with the Scottish Fiscal Commission.

The SFC was also due to provide updated fiscal and economic forecasts alongside on May 30th.

Robison said: “We recognise the vital role these documents play in allowing this Parliament to conduct pre-Budget scrutiny and will communicate a new date for publication as soon as possible.”

She said the Government has asked the SFC to “pause work” on developing its forecasts.

Swinney is almost certain to become the next First Minister and he is expected to make economic growth a top priority.

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