TaxPersonal Tax‘Tears’ will follow Scottish tax devolution plans, warns Darling

'Tears' will follow Scottish tax devolution plans, warns Darling

Handing over Scottish income tax powers while removing voting rights will create a split that adds great risk to improving the economy, warns Alistair Darling

‘Tears’ will follow Scottish tax devolution plans, warns Darling

DEVOLVED income tax powers for Scotland will lead to “floods of tears”, former chancellor Alistair Darling has warned.

Darling said that prime minster David Cameron had linked the handing over of the power to Scotland with the removal of tax and spend voting rights for English laws, in an article for the FT.

Devolving income tax could see Scots paying no taxes directly from their income for “quintessential” UK services, including defence and social protection.

Such a move would also damage the UK, with it ceding a large part of its revenue base and ability to manage the economy, and the principle of sharing risks would be undermined.

“Lenders realising that the UK might not be able to raise income tax to the required extent would charge more to lend, hitting everyone throughout the UK,” Darling stated.

Related Articles

Government should rethink “digitally distracted” HMRC, ATT urges

Administration Government should rethink “digitally distracted” HMRC, ATT urges

1y Fraser Simpson, Reporter
UK has ‘vital role to play’ in beating tax evasion, declares Panama Papers whistleblower

Corporate Tax UK has ‘vital role to play’ in beating tax evasion, declares Panama Papers whistleblower

1y Fraser Simpson, Reporter
Parliament to debate digital tax accounts this month

Administration Parliament to debate digital tax accounts this month

2y Calum Fuller, Reporter
Jamie Oliver adds voice to growing calls for sugar tax

Corporate Tax Jamie Oliver adds voice to growing calls for sugar tax

2y Calum Fuller, Reporter
Cut Scots' income tax and target sugar, committee told

Personal Tax Cut Scots' income tax and target sugar, committee told

2y Calum Fuller, Reporter
Knight's suitability as OTS chief questioned by MPs

Corporate Tax Knight's suitability as OTS chief questioned by MPs

2y Fraser Simpson, Reporter
Macpherson to leave Treasury after 10 years in Permanent Secretary role

Corporate Tax Macpherson to leave Treasury after 10 years in Permanent Secretary role

2y Chris Warmoll, Writer
Holyrood to rule out income tax increases despite new powers

Corporate Tax Holyrood to rule out income tax increases despite new powers

2y Calum Fuller, Reporter