Forbes warns of moves if tax increased

Deputy First Minister Kate Forbes has warned the Scottish Government must take into account people moving out of the country if taxes are increased north of the border.

In recent years, the Scottish Government has committed to “progressive taxation”, with last year’s budget increase income tax on the highest earners and creating a new band for those earning between £75,000 and £125,140.

The nature of tax policy in a devolved context, you just can't get away from the reality, it's very easy to move

But speaking at an event at the SNP conference on Friday, organised by the Child Poverty Action Group Scotland, the deputy First Minister warned of the dangers of further increasing tax.

Responding to a staff member from Oxfam Scotland, Ms Forbes said she had to “guarantee income” for the Government.

“The nature of tax policy in a devolved context, you just can’t get away from the reality, it’s very easy to move – it just is very easy to move.

“We have to take into account the behavioural impact also.”

The same is not true of independent nations, the deputy First Minister added.

“You set tax policy at the beginning of the year, if people move, then you don’t get the money in and what you end up doing is you pay the UK Government money and it’s all very unpleasant and we have less money,” she said.