Readers' Letters: Surprise, surprise, Scottish Government put squeeze on wealth creators

We hear little now of “progressive” taxation, instead replaced by the “Social Contract” between the Government and the people, allowing, for example, free tuition and free prescriptions.

However, the “contract” fails to mention the hundreds of millions of pounds wasted on ferry procurement and wasteful court cases trying to save poor policy, to name but two.

Regretfully, the people have no power to sue this unfit Government for breaches of this “contract” but they do have the power to throw the incompetents out of office at the first opportunity. I hope they exercise that power.

Richard Allison, Edinburgh

That’s progress

“Progressive taxation” is a system of taxation that effectively assists lower earners, while asking those who earn most to pay a little more. In the Scottish Budget presented to Holyrood this week, it would appear paying tax has just become a bit more burdensome for higher earners, but we must look at the bigger picture.

The Scottish Government’s priority spending differs greatly from the spending choices made by Westminster. One such spending difference is the introduction of the game-changing Scottish Child Payment of £25/wk to each eligible child, which is to receive an increase of 7 per cent to £26.70/wk in 2024, a massive increase for over 300,000 children and their families amidst the cost of living crisis.

For those going onto further education in Scotland there are no tuition fees, a huge advantage for the next generation, who will not be saddled with debt at the beginning of their working career.

And what about no tax on the sick in Scotland, with the abolition of prescription charges since 2011 (£9.65 per item in England)? Our nurses in Scotland are the highest paid in the UK, our Social Care workers are to receive a minimum wage of £12/hr from April 2024.

Those advantages for those of us living in Scotland could have been reversed, could have been stagnated, but instead many have been extended, and yes, they do come at a cost, a cost that effectively reaches out to those in need while asking those who earn more to pay more. After all, the advantages of living in Scotland are for us all.

Catriona C Clark, Banknock, Falkirk

That’s rich

Before the Scottish Budget announcement on Tuesday we had the predictable complaining about any increase in income tax for higher earners, now confirmed.

This is part of a constant false narrative which presents income tax as the only significant tax levied.

In fact, income tax makes up only 30 per cent of total tax levied on individuals. It is progressive, meaning higher earners pay a higher percentage rate.

But other taxes apply more equally and some – council tax, VAT – are regressive, meaning lower income earners pay a higher percentage of their income.

The net result, as shown in government statistics and as reported by the Fraser of Allander Institute, is that the poorest fifth of the population pay a slightly higher percentage rate of total tax than the richest fifth.

The exaggerated role given to income tax also feeds the largely false story about an exodus south of rich people from Scotland should income tax increase. High-earners should be intelligent enough to weigh up the total tax impact, the costs of education, health and care, housing costs and so on, even before getting to the quality of life factors.

Also, consider that the UK Chancellor has cut the National Insurance rate which benefits someone earning £80,000 by about £1,000 per year, whereas a low-earner on minimum wage only benefits by £170.

This pre-election sweetener costs £9bn, which otherwise could have been spent on public services across the UK, thus making rather easier the budgetary challenge faced by the Scottish Government.

Robert Farquharson, Edinburgh

Deficit ears

Scottish Finance Secretary Shona Robison doesn't seem to realise the mess Scottish finances are in. Instead of reining in unnecessary spending to fill the black hole of a £1.5 billion deficit, she has decided on increasing expenditure. Spending for arts and culture up £15.8 million, £358m splurged on “clean” heating systems, £49m for the circular economy and £1bn on social security. Excuse me, but how will that balance the deficit of £1.5bn?

Remember this is our money – taxpayers’ money – that we are talking about. The 39 per cent of Scots, according to the Scottish Government, who do not pay income tax at all won't mind. The rest of us will have to pay for the burden of the SNP's ineptitude.

William Loneskie, Oxton, Lauder, Berwickshire

A good day?

The mocking phrase “a good day to bury bad news” referred originally to the use of the infamous 11 September attacks in the USA to release unpleasant information on other matters and hope the relevance would get buried in the bigger catastrophe. It has been used in the UK several times.

The latest example is news emerging of the SNP giving up on their Gender Bill judgment appeal on their Budget day – in effect admitting their bill is a lost cause – so allowing that hated-by-many and palpably not-thought-through legislation to wither on its vine.

I am delighted, but it is spoiled by what looks like the SNP's dirty tricks department making use of the tactic that in the past they have accused others of employing. Being upfront is simply beyond them, it would seem.

We should, of course, be used to the SNP's rank hypocrisy by this time.

Alexander McKay, Edinburgh

Rank hypocrisy

I cannot be the only one who can see through the rank hypocrisy when it comes to Labour’s approach to the Scottish Budget?

For Labour in Scotland, the budget is the result of years of “chaotic incompetence” by the SNP. Meanwhile in Wales, where Labour is in administration, the swingeing cuts to that nation’s budget, creating a £1.3 billion shortfall, are due to “Tory chaos”.

Some clarification is clearly required.

Alex Orr, Edinburgh

Wrong priorities

The newly released Scottish Government spending plans show contempt for the ordinary hard-working Scottish people. Too much of it represents pandering to activists, NGOs and large corporations. For example, grants to the offshore wind supply chain have soared from £9.3 million to £66.9m. Yet the railways, needed by thousands of workers to commute, had their funding slashed from £2,129 million to £1,601m over two years.

More difficult to find data on was Scottish Government operating costs. These have risen from £696.1 to £721.6m. They can no longer boast that it's less than 1 per cent of the total budget. And £4,700m has been earmarked to activities which “will have a positive impact on delivery of our climate change goals”.

Geoff Moore, Alness, Highland

Hair raising

With a smile and a refreshed hairdo, Shona Robison unleashed her much heralded budget upon Scotland (your report, 20 December). It made many Scots’ hair stand on end.

The last 16 years of SNP power was encapsulated within this event and one other, the dropping of the war against Westminster over gender reforms, and all within 24 hours. In this small time-frame it showed the lack of attention to detail so necessary when running a government and the consequences of not so doing.

No-one in the SNP/Green alliance seems to look beyond the spin and consider what damage they are inflicting. Can Scotland's voters genuinely afford to wait until 2026 to give their verdict?

Gerald Edwards, Glasgow

Retro move

To the cost of installing a heat pump, Paul Marsden (Letters, 20 December) should add the huge costs of storage for furniture and carpets – the floors have to come up – plus restoration and redecoration and cleaning, and the cost of staying elsewhere for at least a week, as there will be no water or power during the installation work. Knowing I was in my 80s, the contractor who quoted me for a heat pump was honest enough to say that my house would be pretty well demolished internally, and many of his customers had been close to a nervous breakdown because of the damage dirt and disruption.

Retro-fitting of any heating system is a nightmare.

Malcolm Parkin, Kinnesswood. Kinross

Peace to all

In the 16th century, German theologian Martin Luther, walking past a forest one night, looked up and saw the bright stars twinkling through the branches of the trees. He was so in awe of this beauty that he placed a fir tree in his home and attached candles, to recreate what he had seen for his family. For those who have lost family, whether through Covid or war, I pray that they find peace during Christmas.

Sean Ashley, Aberdeen

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