Local Scottish Conservative politicians have warned that plans to hike income tax in Scotland would risk an exodus of investment and businesses out of the Scottish Borders.
The Scottish Government have published a range of options for increasing income tax.
Scotland is already the highest taxed part of the UK with business rates, council tax and income tax being increased under the SNP Government.
Speaking in Westminster, John Lamont MP said the Borders would be particularly hard hit because it is so easy for investors, entrepreneurs and businesses to relocate a short distance across the border to pay less tax. He urged the UK Government to look at the impact of different tax rates north and south of the Border.
In response, Andrew Leadsom, Leader of the House of Commons noted concerns from the Scottish Chamber of Commerce that higher tax rates will drive investment out of Scotland and agreed that this was “very worrying.”
Speaking after this was raised at First Minister's Questions, Rachael Hamilton MSP has called on the SNP to think again and rule out income tax rises.
Rachael Hamilton MSP said: “Any increase in income tax is detrimental to hard working individuals such as nurses and teachers - indeed anyone who earns over £24,000 will be worse off because of this possible tax hike.
“This might cause those in the Borders to move south so not to live in what will be the highest taxed part of the UK.
“The SNP need to think again and rule out any increase in income tax.
“As Ruth Davidson raised in First Minister’s Questions the Scottish Conservatives believe in growing the economy to pay for public services instead of damaging increases in income tax.”
John Lamont MP added: “Scotland is already the highest taxed part of the UK and the result is that our economy is growing at a third of the rate of the rest of the UK.
“Now it is clear the SNP want to hike income tax rates even further, ignoring warnings from business groups that this will be bad for our economy and drive investment away from Scotland.
“The proposals from the SNP would hit the pay packets of those on low incomes and hard working families.
“However any plan to increase income tax is a particular blow to the Scottish Borders because it is so easy for investors, entrepreneurs and businesses to relocate a short distance to pay less tax. These proposals would risk an exodus across the border.”