UK tax hike would have 'massive' impact on Scotland - Robison
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PA Media Finance Secretary Shona Robison refused to rule out an increase in Scottish income tax
UK tax changes could have "a massive impact" on Scotland's public services, Finance Secretary Shona Robison has said. She said that an income tax increase south of the border could lead to a £1bn cut in the Holyrood budget, and refused to rule out raising income tax to plug any shortfalls. That came after Chancellor Rachel Reeves fuelled speculation of hikes ahead of the Autumn Budget, which is due to be announced in three weeks. Reeves said she would do what was "necessary" to protect public finances.
The Scottish government has used its devolved powers to create a distinct income tax system from the rest of the UK. A change to UK income tax - which applies in England, Wales and Northern Ireland - would not directly affect Scottish taxpayers, but an increase would lead to an automatic deduction from the block grant that the Treasury pays to the Scottish government.
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