RegulationApr 20 2015

SNP promises to restore 50p tax for high earners

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SNP promises to restore 50p tax for high earners

The Scottish National Party has promised to restore the 50p top income tax rate for those earning more than £150,000 if it gains significant power in next month’s general election.

At their manifesto launch this morning (20 April), party leader Nicola Sturgeon stated it is right that those with the broadest shoulders pay a little bit more.

She said: “That is why we will back the restoration of the 50p tax rate for the highest earners, a mansion tax and a bankers’ bonus tax.”

The document also detailed plans for an annual UK target of 100,000 affordable homes being built, while also using additional capital investment to deliver a further expansion of house-building in Scotland.

One of the main drivers of the manifesto was the aim of ending the coalition’s austerity measures, with the SNP promising a modest spending increase of 0.5 per cent a year to enable at least £140bn worth of extra investment in the economy and public services.

Ms Sturgeon stated: “It is a manifesto, above all else, to end austerity; that will be our number one priority.”

For the NHS this will mean an additional £9.5bn spending above inflation across the UK by 2020 to 2021 - £24bn in total - and a total increase for NHS Scotland of £2bn.

The party also pledged to increase the minimum wage to £8.70 by 2020, retain the triple lock on pensions and protect the winter fuel allowance.

Following last September’s ‘No’ vote in the independence referendum, there was less of a focus on separation for Scotland, stating that this election was about making the nation’s voice heard more loudly in Westminster.

“We will use the influence of SNP votes at Westminster to ensure that the promises made during the referendum are delivered,” said Ms Sturgeon.

“We will demand that the proposals of the Smith Commission are delivered quickly and in full, and we will oppose any effort to undermine devolution.”

She added that her party would seek agreement that the Scottish parliament should move to full financial responsibility and as part of a phased transition, prioritise early devolution of powers over employment policy, including the minimum wage, welfare, business taxes, national insurance and equality policy.

peter.walker@ft.com