Date lodged: 22 June 2018
To ask the Scottish Government whether it anticipates its policy to increase income tax levels for people earning over £26,000 compared with people in the rest of the UK will widen or narrow the gap between Scotland and the UK’s real household disposable income growth levels.
Answered by: Derek Mackay 16 July 2018
The latest statistics from ONS show that over the period 2006 – 2016 (the latest available year) Gross Household Disposable Income per person in Scotland has grown at 2.6% a year in current prices, the same as in the UK as a whole. The SFC forecasts for disposable income growth shows a gap in the coming years, however they are forecasting that this will close (see figure 5 of their publication, which can be found here: http://www.fiscalcommission.scot/media/1314/scotlands-economic-and-fiscal-forecasts-may-2018-full-report.pdf ). The tax changes we have made have ensured that, for the majority of income tax payers, Scotland is the lowest taxed part of the UK.