TWO Clackmannanshire politicians have clashed over proposals to raise the Scottish rate of income tax by 1p.

MSP Dr Richard Simpson is backing Scottish Labour plans to increase the rate - saying it would mean "half a billion more to invest in the future of our children and our country".

However, MSP Keith Brown has blasted the increase and called it a "complicated, unfair and unworkable tax hike that would hit low and middle-income earners hardest".

Labour is proposing to raise the Scottish rate of income tax - which makes up half the income tax paid in Scotland - in next year's budget.

Under plans, those paying the basic rate of 20p would continue to pay a 10p UK rate, along with an 11p Scottish rate - making up 21p overall.

Dr Simpson claimed the SNP could choose between imposing "brutal cuts on our local services like our schools in Clackmannanshire", or using powers to reject austerity.

He said: “Given the choice between using the powers of the Scottish Parliament or cutting into Scotland’s future, Scottish Labour will choose to use our powers.

“Scottish Labour will set the Scottish rate of income tax one pence higher than the rate set by George Osborne and John Swinney, to provide an extra half a billion pounds a year to invest in our future.

“This choice is about protecting our children’s schools and our nation’s economic future from these cuts; it means half a billion more to invest in the future of our children and our country.

“Low-paid workers will be the biggest winners of our plan. One in four workers won’t pay a single penny more, and one in five low paid income taxpayers will actually benefit from this plan, with a £100 annual payment for income taxpayers earning under £20,000.

“Austerity isn’t working for families in Clackmannanshire. We can make a different choice and fairer choice. We can stop these cuts.”

In contrast, according to Mr Brown, the SNP's budget will deliver a pay rise for up to 51,400 low paid workers - with no rise in income tax or council tax bills.

He criticised Labour’s decision to vote for a tax hike for 2.2 million basic rate taxpayers across Scotland.

He added: “I voted for an SNP budget that will help people on low incomes by rolling out the living wage across the social care sector, freezing the council tax and supporting low paid public sector workers – while Labour voted to increase how much tax they pay.

“Setting the income tax rate across all bands will inevitably hit the poor. Questions remain over its complexity – how will it be administered? Will that income be taxable, and will it impact on other benefits such as tax credits? Are we to believe that every time our block grant is cut from Westminster, will Scottish Labour increase taxes?

“Labour plans will place the burden of Tory austerity onto working people across the country – forcing people such as all newly-qualified nurses, teachers and police officers to effectively take a pay cut.

“I will continue to stand up for low paid workers in Clackmannanshire and fight the impact of Tory austerity – I will never ask ordinary workers to pay for Tory cuts.”

According to Scottish Labour:

  • A 1p increase in income tax, taking it up to 11p, would safeguard services.
  • Someone on £144,687 would pay an extra £28 a week.
  • One in four workers won’t pay more.
  • One in five low paid income taxpayers will benefit from the plan.
  • There will be half a billion more to invest each year.
  • To ensure low paid workers benefit, more than 810,000 workers in Scotland will pay not a single penny more.
  • There will be a £100 annual payment for income taxpayers earning under £20,000.

According to the SNP:

  • The draft SNP budget will deliver a pay rise for up to 51,400 low paid workers.
  • There will be no rise in income tax or council tax bills.
  • Key pledges included a £500m rise in the NHS budget.
  • There will also be the protection of the teacher-pupil ratio.
  • The police budget will be safeguarded.
  • There will be funds to pay care workers the living wage.
  • It offers a pay rise for 51,400 low paid workers.