Taxes dominate first leaders debate
None of the leaders seemed to agree on how taxes should be tackled
Taxes were the main point of debate in the first Scottish leaders’ TV debate.
Nicola Sturgeon said she thought the top rate for income tax should be set at 50p, but worried it could cost Scotland millions in lost revenue.
The SNP leader and First Minister argued a failure to devolve powers to tackle tax avoidance alongside new controls coming to MSPs over income tax created a barrier to restoring the 50p rate in Scotland alone.
The First Minister previously said she was in favour of increasing the levy on those earning ÂŁ150,000 a year or more, but has now ruled out such a move for the first year that ministers at Holyrood have control over it.
From April 2017 the Scottish Parliament will have the ability to set income tax rates and bands, meaning it will be a key factor in the May 5 election.
When asked if she would like to see the return of the 50p tax band, Ms Sturgeon said: “I think there should be a 50p top rate of tax but you don't set tax rates if it is going to lose you money.
“I don't want to turn around in two years’ time and say we've got less money to spend on our health service.''
She said the SNP had ruled this out for the first year the new powers are in place, but said: “I haven't ruled it out for the rest of the parliament.”
She said if even 7% of people earning ÂŁ150,000 or more moved out of Scotland the loss in revenue could amount to ÂŁ30 million every year.
She added: “I would ask, if I'm re-elected, ask the First Minister's council of economic advisers to look at this on an annual basis to see if we can find ways of mitigating that risk and we will judge it in our budget every year.''
She insisted the SNP tax proposals are fair, progressive and balanced''.
The First Minister argued: “We don't want to raise the basic rate of income tax because 2.2 million people struggling to make ends meet shouldn't pay the price of Tory austerity'' Ms Sturgeon said.
“We don't think it is right to do what George Osborne is planning to do which is give a very large tax cut to the best off in our society.''
Labour leader Kezia Dugdale said her party would up the top rate in Scotland to 50p.
She said: “We would ask the richest to pay a bit more, ask those people who earn £150,000 a year to pay a 50p rate.
“Something Nicola Sturgeon used to stand for is something the Labour Party will do.''
In response to Ms Sturgeon arguing these tax plans would raise £2 billion a year, Ms Dugdale said: “It won't be enough to stop the cuts, it's not enough to end austerity.''
She argued: “If we did that we could raise enough money to stop the cuts, make different choices from the Tories.”
Conservative leader Ruth Davidson hit out at her rivals.
She said: “We've got the First Minister of Scotland saying she wants to make Scotland the highest taxed part of the UK and then we've got the leader of the opposition saying that's not enough, we need to take more money off working Scots.''
Ms Davidson later added: ““What we've got at the moment is somebody saying 'let's whack up taxes' and someone saying 'let's whack them up even higher'.
“Wouldn't it be good to have somebody in there saying let's drag this country and this parliament back to the centre, not ever leftwards?''
Ms Dugdale made it clear she wanted Labour to be more than the opposition.
She said: “It's Nicola's desk I want, I want to serve this country as First Minister.”
Ms Sturgeon responded: “You can have the desk, you're just not getting the job.”