The UK Government has a new prime minister in Liz Truss and a new Chancellor in Kwasi Kwarteng.They have been in power only for a matter of weeks - but they have already announced a massive round of tax cuts which will most benefit big companies and rich individuals.Despite having no mandate from the public, Kwarteng has announced the biggest tax cuts since 1972.But as the Scottish Government controls certain elements of taxation north of the Border, it means there could be substantial variation in what people pay north and south of the Border.John Swinney, the finance secretary, said Westminster was "borrowing to give tax cuts to the wealthy, lowering regulatory standards and inflating an already booming housing market".He is due to set out Scottish tax rates for the year ahead in Feburary as part of the usual Holyrood budget process.One of Kwarteng's biggest announcement was the scrapping of the top rate of income tax.
This means the wealthiest will pay a rate of just 40p instead of 45p.But that doesn't apply in Scotland. Under rates set at the last Holyrood budget earlier this year, those earning over £150,000 pay 46p in the pound.
Scots earning £43,663 to £150,000 will continue paying 41p.Sean Cockburn, of the Chartered Institute of Taxation, said: "It raises the prospect that all Scottish taxpayers earning more than £14,732 will now pay more income tax compared to taxpayers in the rest of the UK."As an illustration, someone in Scotland earning £27,850 would have paid the same amount of tax as someone living in the rest of the UK this year.
The changes announced by the Chancellor mean that from next year, they would pay £152.80 more."The UK Government retains control of National Insurance (NI) meaning changesRead more on dailyrecord.co.uk