Economists warn Tory tax plan is "perfect storm"

Economists have warned the Scotland Bill and Tory tax plans could create a “perfect storm” damaging Scotland’s economy and public spending and potentially risking jobs by coming in at the end of four years of Tory spending cuts.

In response the SNP said Scotland needs the economic powers to create jobs whilst the opposition parties simply want the power to raise taxes.

 

Giving evidence in Parliament Professor Andrew Scott of Edinburgh University and Andrew Hughes Hallet, Professor of Economics and Public

Policy at George Mason University said the flawed tax powers in the bill coupled with huge UK spending cuts could create a “perfect storm” and warned politicians over raising or introducing new taxes without the

powers to abolish others.

 

The SNP will now write to the leaders of the three opposition parties asking what they will do to ensure the Scotland Bill offers job creation powers and does not jeopardise Scottish employment and economic growth through its tax raising powers.

 

SNP MSP Brian Adam, Deputy Convener of the Committee who apologised to the economists for their treatment by opposition politicians in Committee today said:

 

“The SNP and Scottish people want a parliament with the powers to create jobs.  The Tories backed by Labour simply want the power to raise taxes as part of a tax trap that will put thousands of jobs at risk.

 

“This warning of a “perfect storm” of fewer tax payers, lower revenues and potentially fewer jobs is one that parties and MSPs must heed.  The SNP is certainly listening to the concerns raised that the tax raising powers in the Tory plans could damage Scotland’s economy and lead to the loss of Scottish jobs.

 

“It is incomprehensible that any party would want to risk jobs and revenues at any time, particularly as Scotland recovers from the UK

recession.

 

“In the same way that the SNP Government and Scottish Parliament can protect health, education and local services from the actions of a Tory Government with stronger economic powers we could do more to protect jobs and build a stronger economic recovery."