May 30, 2024, 12:58 PM
May 28, 2024, 5:33 AM

How will Scotland's political parties balance tax and spend promises in Election 2024?

Highlights
  • Scotland's parties are evaluating tax and spend pledges to attract voters in the upcoming election.
  • MSPs are considering a tourist tax proposal that could impact accommodation bookings in Scotland.
  • The decision-making process for tax policies in Scotland is crucial for politicians seeking voter support.
Story

Taxes are higher now than they have been in 70 years. Some changes like limiting visas for foreign students, altering workers' rights, and oil and gas drilling licenses could impact the Scottish economy without involving Holyrood. Labour has 120 people supporting a letter that says they are the main challengers to the Tories. Unhappy union leaders might help Labour gain votes. The Tories don't need to work as hard to show they have business support, as their campaign contributions prove. However, there have been disagreements between businesses and the party due to Brexit. The "new" state pension for younger pensioners is £11,502 this year. Labour calls the tax promise a "gimmick" and blames inflation. The starting income tax threshold is controlled by the UK government, not Holyrood. SNP ministers haven't said if they will match it. How will these promises be funded? For example, a policy costing £2.5bn would be only 0.02% of this year's government spending. Under Boris Johnson, the Tories started to oppose oil and gas drilling. Labour wants to increase tax revenue from this sector. The tourist tax is a charge to visitors to pay for attracting more tourists. Manchester introduced a similar tax last year. Scottish councils like Edinburgh, Highland, and Aberdeen supported the idea of a tourist tax six years ago. In 2019, the Highland had seven million visitors, but due to Covid, the numbers dropped. However, there are signs of recovery, with over six million visitors in 2022. The Scottish government suggests implementing the tax by 2026. The City of Edinburgh Council might be the first to do so. Ollie Hughes, a guesthouse owner, says the tax would increase costs for businesses like his. The Scottish government aims to raise essential income through this tax.

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