Autumn Statement: UK matching Scottish income tax rates would raise £11bn for frontline services, say Scottish Greens

The suggestion by the Scottish Greens comes as the UK Government is set to announce its spending plans in the autumn budget.

Chancellor Jeremy Hunt replicating tax reforms introduced in Scotland could raise £11 billion for the Treasury, the Scottish Greens have claimed.

This could be used to for a UK-wide scrapping of the two-child benefit cap and the so-called ‘rape clause’ eight times over, the party said.

The figure comes from research from the House of Commons library commissioned by Caroline Lucas MP and shared with the Scottish Greens.

Scottish Green party's Ross Greer heads to the main chamber for Portfolio Questions at the Scottish Parliament in Holyrood, Edinburgh.

Tax rates are significantly different in Scotland compared to England. In England, a person pays 20 per cent up to £50,270 after a £12,750 personal allowance, rising to 40 per cent up to £124,140, and 45 per cent for those earning over that figure.

In Scotland, those earning less than £14,733 pay 19 per cent after their personal allowance, with those earning between that and £25,688 paying 20 per cent. The intermediate 21 per cent tax rate kicks in up to £43,662, with the higher rate of 42 per cent kicking in at £43,663. For those earning over £125,140, the tax rate sits at 47 per cent.

If this was introduced in the rest of the UK, research suggests this would see tax receipts jump by £11bn, including the impact on National Insurance contributions, but not taking into account any potential behavioural change.

It comes on the back of widely-briefed tax cuts potentially set to be announced by Mr Hunt in Wednesday’s Autumn Statement.

Scottish Greens finance spokesperson Ross Greer said: “I am proud that Scotland has the most progressive tax and social security system anywhere in the UK and that we are using it to lift children out of poverty. The UK Government must follow our lead to help children both in the rest of the UK and here in Scotland.

“We are in a Westminster-inflicted cost-of-living crisis with a cold winter ahead. It is only fair that better-off people pay a bit more to ensure that we can protect the most vulnerable.

“Our fairer tax system in Scotland has allowed us to deliver vital measures like the weekly £25 Scottish Child Payment, free bus travel for everyone under 22 and compensation for families hit by cruel Tory policies like the bedroom tax. Unfortunately, our ability to go further and help more children depends on a different approach being taken at Westminster."

Mr Greer said such tax changes should be used to scrap the two-child cap and rape clause, as well as other spending.

“Sadly, the Tories aren’t remotely interested in helping the most vulnerable,” he said. “That is why they have launched attack after attack on the social security safety net whilst removing the cap on bankers’ bonuses.

“Meanwhile, [Sir Keir] Starmer’s Labour is breaking promise after promise before it has even had a sniff of power, all while telling us that they have no money to change things. They simply lack the political courage to support the kind of progressive tax and social security plans which Greens have been key to delivering in Scotland.

"If they followed our lead, it would lift hundreds of thousands of children out of poverty across the UK, including in Scotland. So much good could be done with £11bn. By ensuring the wealthiest are paying their fair share, we can build a fairer society and do even more to support the most vulnerable and the services we all rely on.”

The Treasury declined to comment on speculation about tax bands so close to the Autumn Statement.