SNP “shambles” and “betrayal” on tax credits

Commenting after the SNP failed to vote for Scottish Labour plans to use the new powers in the Scotland Bill to restore the money lost through tax credit cuts for working families, Scottish Labour’s Public Services and Wealth Creation Spokesperson Jackie Baillie said:

“What an absolute shambles from the SNP. The SNP have spent days telling us we wouldn’t have the power to top-up tax credits, yet Alex Neil now accepts that’s just not true. Yesterday Alex Neil issued a press release demanding tax credits be devolved, even though he conceded today that the power to top-up tax credits is already being devolved. Why can’t the SNP just embrace the new powers instead of always talking Scotland down?

The tax credit debate exposed what really matters to the SNP Government – constitutional grievance rather than helping working families in Scotland.

Scottish Labour has set out a plan for using the new powers coming to Holyrood to restore the money lost through tax credits. The fact that the SNP didn’t vote for this plan is a huge betrayal of working families in Scotland.

Today was a defining day for the Scottish Parliament. It was a chance for all parties to say what they would do with the new powers that are coming. The SNP and the Tories failed that test today.”

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6 thoughts on “SNP “shambles” and “betrayal” on tax credits

  1. Since the Labour plans involve using APD revenue – not devolved until at least 2018..Labours fiscal plans are a shambles, since the tax credit cuts come in 2016.

    Further cancelling the planned cut to APD by the SNP will not generate an extra £250 million as advertised by Kez, or as also stated because it is not “Spent” on APD it can be “Spent” on tax credits.

    The Scotland bill will be fiscally neutral therefore the Block Grant will be adjusted to compensate and give Scotland no more money than it already has. APD will then be needed for services such as Education, Health, Justice etc. Spending the APD revenue on Tax credits necessarily means removing it from other budget lines…it is not an extra £250 million as advertised by Kez et al… ( it’s a bit like saying – if we dont spend the cash on the NHS we’ll have an extra £12billion to spend elsewhere )

    The SNP didn’t vote for Labour plans because they are incoherent and based on cash that won’t be devolved for at least another 2 years. Neither did the SNP vote with the Tories on the ammendments at Holyrood…Labour did…twice

    1. Hi Martin,

      I think you have misunderstood. Scotland receives the revenue from APD today. It’s part of the block grant. We continue, in fact, to spend more than we take in taxes – both in Scotland and the UK. So the idea that we don;t have this money until 2018 is a mistake.

      The second mistake is the idea that by not cutting APD we won’t have any additional cash. You say “APD will then be needed for services such as Education, Health, Justice etc.” But that cannot possibly be the case, because the SNP plan to cut it! Or are you suggesting that when the SNP cut APD they will be cutting spending on education, health and justice? You can;t have it both ways.

      Labour’s plans make perfect sense. Instead of an SNP tax cut on APD and a Tory tax cut on higher rate thresholds, we will keep taxes at the levels they are today, and thereby have the necessary additional money to spend. It adds up. It’s a good policy. The SNP didn;t back it because they prefer grievance politics to push for further separation over making our devolved system work.

      1. “Scotland receives the revenue from APD today.”

        You cannot possibly say that as there is no clear definitive breakdown of Barnett consequentials. That is an assumption on your part.

        We receive a portion of the revenue we raise back from Westminster, who decide what is, and isn’t UK wide spending, or rUK spending.

        “The second mistake is the idea that by not cutting APD we won’t have any additional cash. ”

        You cannot have it both ways, either it is as you say and we already receive it (and spend it) or we will receive it when it is devolved and the block grant adjusted to be fiscally neutral therefore a zero sum game and we will have the same size budget as before (which is still spent.
        Neither gives you “additional cash” it is merely cash already allocated to services – which will then be taken out to fund tax credit top ups.

        “But that cannot possibly be the case, because the SNP plan to cut it! Or are you suggesting that when the SNP cut APD they will be cutting spending on education, health and justice? ”

        If they cut it (since they are waiting to see the fiscal framework before making fiscal policy – a sensible course) they will have to….it will be done to try to generate more revenue from business through Scottish airports to counterbalance the cut throughout the fiscal year.

        Plain to see I am not asking for it both ways and not assuming there is any extra cash form a magic money tree.

        “we will keep taxes at the levels they are today, and thereby have the necessary additional money to spend.”

        The logical flaw again….if tax levels remain as they are today then the revenue level will remain the same…..where is the additional money coming from?

        The Scotland bill will be fiscally neutral.

        “The SNP didn;t back it because they prefer grievance politics”

        No-one at Holyrood backed Labours plans, not the Lib-Dems, Greens, SNP or the Tories. By your logic all parties except Labour are guilty of greivance politics – except labour only mention the SNP….grievance?

      2. “It adds up”, in what fantasy world does that add up. If you do not cut APD or put up taxes how in gods name are you going to generate more income to mitigate the cuts in tax-credits.

        The cut in APD is designed to generate more income from business and tourism, hopefully an extra 90 million per year.

        And how can you claim stopping a tax cut for the rich by the tories which hasn’t happened, is a way of raising additional income ????

        Its just “bampot economics” fa yersel, ballie & labour party.

        1. You’re claiming a £250m tax cut will raise £90m a year, and you accuse ME of “bampot economics”? Good grief.

          1. Yes I do, as you may or may not know, the cut in APD will be to generate an increase in Scotlands revenue in both tourism and business, estimated at around £340 million.

            Normally I would say you do the maths, but that obviously is a waste of time.

            Your false outrage also is getting well skelped, as your wealth creation spokesperson made a complete muppet of herself trying to explain her thought process on this subject today on the big debate.

            Boy are you lot getting hammered on WOS because of that. It ain’t just grief your getting, what a mess.

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