Leader - Swinney faces some taxing decisions

The response so far from senior SNP figures to Chancellor Kwasi Kwarteng’s “mini-Budget” on Friday has been unfavourable, to say the least.

First Minister Nicola Sturgeon branded the plan “incompetent and reckless”, while the SNP’s Westminster leader, Ian Blackford, condemned the package of measures as “nonsense”.

Mr Kwarteng slashed stamp duty for homebuyers, cut the basic income tax rate to 19p in the pound, and scrapped the top rate of 45p for those earning £150,000 or more.

Acting finance secretary John Swinney is expected to unveil the Scottish Government’s budget for the coming year within weeks.

Chancellor Kwasi Kwarteng addresses MPs in the House of Commons

If, as seems likely, he does not pass on these cuts, Scots will end up paying significantly more tax than people in the rest of the UK.

The disparity that has existed in recent years between the Scottish and UK tax systems is already having a major impact on growth north of the Border.

Writing in The Scotsman last week, economist John McLaren highlighted “the self-inflicted higher tax burden that Scottish households are facing thanks to the transfer of income tax powers”.

Holyrood taking partial control of income tax is set to cost Scots hundreds of millions of pounds in revenue by 2026, he said.

The package of measures unveiled at Westminster on Friday is a risky gamble by new Prime Minister Liz Truss designed to stimulate growth out of recession.

Critics have said the measures disproportionately benefit the most wealthy, and the markets have been spooked by the prospect of borrowing rising to eye-watering levels.

But Mr Swinney must now weigh up to what extent he too should gamble on the radical measures set out by Mr Kwarteng.

Three former economic advisers to the Scottish Government – former RBS boss Sir George Mathewson, Professor Sir John Kay and tycoon Jim McColl – warned yesterday the country faces a flight of high earners and wealth creators to England unless he matches the plans.

The policies outlined by Mr Kwarteng are open to criticism but Ms Truss and her government have at least set out an economic plan. Ms Sturgeon and her administration must not delay doing the same.