Scottish workers are being “clobbered” for an extra £1.8 billion after the SNP further widened the tax gap with the rest of the UK in Tuesday’s budget.
The decision to again freeze the higher-rate threshold at £43,663 will drag another 53,000 middle-income workers into the punitive 42-per-cent bracket.
Business groups, including the CBI, have repeated their warning that the higher tax burden makes it harder for firms to recruit and retain the skilled workers needed to grow Scotland’s economy.
To make matters worse, £800 million of the extra £1.8 billion in higher taxes is lost because of the poorer economic performance it leads to.
The Scottish Conservatives, who have slammed the SNP for “punishing strivers” to pay for a rising benefits bill, had called for an increase in thresholds to match rising salaries and a cut to 19% on all taxable earnings up to the higher rate.
Together, these measures would have saved Scots up to £718 in the coming year.
Scottish Conservative shadow finance secretary Craig Hoy said: “The enormous and widening tax gap between Scotland and the rest of the UK illustrates just how hard the SNP are clobbering middle-income workers.
“John Swinney is punishing strivers with higher bills to pay for a rising and out-of-control welfare bill.
“Tens of thousands more nurses, teachers and police officers on relatively modest salaries are being dragged into the higher rate, which was never intended for them.
“The SNP’s vindictive tax on aspiration is stifling Scotland’s economic performance by making it harder and harder for businesses to recruit and retain skilled individuals.
“Shona Robison let the cat out of the bag in an interview today by pointing out how much her stealth tax raid costs workers.
“While the SNP, Labour and Reform want to increase benefits spending, only the Scottish Conservatives are standing up for the hard-working Scots who deserve a break.”
Notes to editors
SNP tax rises cost taxpayers in Scotland £1.8 billion. In 2026-27, the cumulative tax rises imposed by the Scottish Government since income tax was devolved cost taxpayers £1.754 billion. (Scotland’s Economic and Fiscal Forecasts, 13 January 2026, link). This is an increase from £1.674 billion in 2025-26. (Scotland’s Economic and Fiscal Forecasts, May 2025, link).
Over 53,000 Scots have been dragged into the higher rate of tax in 2026-27. The Scottish Fiscal Commission estimate that 578,522 Scots were in the higher rate in 2025-26 and that 631,980 will be in 2026-27. This is a difference of 53,348 (Scotland’s Economic and Fiscal Forecasts, 13 January 2026, link).
The SNP Government’s failure to grow Scotland’s tax base is costing the Scottish Budget nearly £800 million. The Scottish Fiscal Commission say that despite the SNP hiking taxes by £1.8 billion, only £969 million is added to the Scottish Budget. They say £785 million is being lost due to Scotland’s worse performance in growing its tax base. The SFC dub this the ‘tax base performance gap’. (Scotland’s Economic and Fiscal Forecasts, 13 January 2026, link).
Shona Robison defended her decision to freeze the higher-rate threshold, claiming it was too expensive to increase it. Robison said: “If the higher rate threshold had been raised just to £44,000, that would have cost £125 million, it is extraordinarily expensive to raise those thresholds at the higher levels. The money is just not available to do that.” (Radio Scotland Breakfast, 2:13:00, 14 January 2026, link).