New Analysis - Labour Tax Plans to Hit 350,000 Low Income Workers

Unworkable Rebate Plan 'Not Fit for Purpose'
Labour’s tax hike on working people could hit the incomes of around 350,000 of even the lowest income workers, new analysis has shown – as the party’s proposals continues to unravel.

Labour announced this week they want to increase the basic rate of income tax for 2.2 million people in Scotland – including 500,000 pensioners. While Labour have claimed that those on incomes between £11,000 and £20,000 could apply for a rebate, they have failed to acknowledge that many people do not claim for benefits.

UK Government figures show that approximately one in three people entitled to claim for certain benefits do not claim them.

An estimated one million taxpayers in Scotland earn between £11,000 and £20,000. If this average level of uptake was maintained, around 350,000 people on low incomes would miss out on Labour’s rebate.

Commenting, SNP MSP Mark McDonald said:

“Since announcing their plans for a tax hike on low-earners, Labour have claimed that their proposed rebate would protect the poorest workers– but the fact is that Labour have no way of telling us how this scheme would work, or how they could guarantee that the rebate gets to those who need it most.

“The reality is Labour cannot guarantee that a single person would claim or receive this £100, but if Labour ever got into power everyone would have to pay more taxes.

"During the budget debate this week, we had the extraordinary spectacle of Labour’s finance spokesperson dismissing serious questions on how Labour’s proposed rebate would work as mere 'details' – now we know Labour’s plans could hit almost 350,000 of the people they have specifically pledged to protect.

“Earlier this week, the Resolution Foundation told us that even if Labour’s rebate plans are workable, they don’t make their planned tax hike any more progressive. The fact is Labour don’t have a clue how their plans would work or how many low-earners would be hit – these plans aren’t worth the back of a fag packet they were written on.

“While the SNP want to give the lowest paid workers in Scotland a pay-rise, Labour want to give them a tax-rise – and Kezia Dugdale will have to answer to these workers for her regressive plans at the election in three months’ time.”

Scottish North Sea Industry Confident of Return to Peak Profitability

Report Underlines Resilience of Oil and Gas Sector
An overwhelming majority of senior executives in the oil and gas industry believe that the North Sea industry will return to peak levels of profitability within five years, according to a new expert report.

The report published by Pinsent Masons finds that 96% of executives surveyed believed that the UK’s continental shelf will be able to recover 'peak' price levels of profitability seen in the first half of 2014 – with 71% expecting this to happen within the next five years.

The study follows news earlier this month that oil and gas production in the UK continental shelf has risen for the first time in 15 years, with output up by seven per cent in the last year.

Today’s report also stated that the industry was ‘resilient’ and would be in ‘terrific shape’ when prices begin to recover.

Commenting, SNP MSP Mark McDonald said:

“This report underlines both the resilience of the North Sea sector and the confidence that industry has for the future.

“Although both industry and workers face considerable challenges at present, we should be mindful that we have a world-leading skilled workforce and businesses that are capable of adapting to new markets and new conditions.

“We have seen some very encouraging news since the turn of the year, with North Sea production up for the first time in 15 years – but we need to build on that to make sure the industry has a prosperous long-term future.

“The SNP has repeatedly called on the UK government to take sensible steps to support the North Sea industry – particulaly on incentivising exploration and development of new prospects.

“The UK government should listen to the confidence industry has in the future of the North Sea and make 2016 a year of action for oil and gas – instead of continuing to sit on their hands as jobs are at risk.”

UK Government’s Energy Secretary Admits UK Government Projections Wrong on North Sea

‘OVERDUE ADMISSION’ FROM LIB DEM MINISTER WELCOMED
The SNP is today highlighting an ‘overdue admission’ from the UK Government’s Energy Secretary Ed Davey that his government got their figures wrong on the North Sea oil industry.

Speaking at the Lib Dem conference today, it is reported that Mr Davey admitted that he did not see the current situation facing the North Sea coming – and yet again failed to apologise for his government’s decision to increase the supplementary tax on the industry in 2011.

Commenting, SNP MSP Mark McDonald said:

“This is an overdue admission from Ed Davey that he and his government did not foresee the current issues facing the North Sea oil industry and that they got their figures wrong – and should put paid to any suggestion that the UK Government has any greater insight into the oil industry than anyone else.

“Simply put, everyone’s projections about oil prices were wrong – now we have to get on with the job of doing everything we can to support the industry in these difficult times and ensuring that it meets its full potential in the decades to come.

“What was however lacking from Mr Davey’s speech was an apology to workers in the North Sea industry for his government’s tax hike on the industry in 2011 – and delayed response to the current situation facing the North Sea.

“A strong team of SNP MPs elected in May will always stand up for the interests of our oil and gas industry – in contrast to a Westminster establishment who have used the North Sea as a cash cow for decades.”