Income tax in Scotland is 'hammering' families and 'choking' opportunities, says Anas Sarwar

The Scottish Labour leader said his party had a ‘presumption against any increases’

Scottish Labour leader Anas Sarwar

Income tax levels in Scotland are "hammering" families in the middle of a cost-of-living crisis and "choking off" opportunities, Anas Sarwar has said.

The Scottish Labour leader said his party had a "presumption against any increases to income tax".

Mr Sarwar made the comments as he announced plans to deliver a new economic growth strategy for Scotland during an event attended by business leaders in Glasgow.

He promised there will be “no cliff edge” for oil and gas following concerns about Sir Keir Starmer’s plans for the sector.

“We fully recognise that oil and gas will continue to play a significant role in our energy mix for decades to come,” Mr Sarwar said. “That is the simple, unavoidable reality. There will be no cliff edge, there will be no turning off the tap.”

There has been speculation that First Minister Humza Yousaf will seek to implement "progressive" tax rises to help pay for public services. Scots earning more than £28,000 already pay more income tax than those in England. An intermediate rate of 21 per cent is paid on salaries of between £25,689 and £43,662.

Responding to questions from journalists, Mr Sarwar said: "I think income tax has been used as the substitute for economic growth, and it's actually choking off opportunity and actually hammering families in the middle of a cost-of-living crisis.

"He seems to believe, our First Minister, that someone earning over £24,000 a year is somehow well off and therefore should pay higher taxes. You ask families across the country that are on £24,000. They don't feel very well off. They're struggling to pay their mortgages. Mortgages have gone up because of Tory economic chaos.

"They're struggling to pay their energy bills, they're struggling to pay their food bills, and now they're getting hit with a potential of a council tax increase of over £700 as well.

"That's choking off opportunity, and pushing more and more people into poverty. So we have a presumption against any increases to income tax, and we instead want the Scottish Government to focus relentlessly on economic growth to increase the size of the cake and to then make those strategic investments so we can deliver social reform here in Scotland."

Earlier, Mr Sarwar said his party is “unashamedly” pro-business and pro-growth. He used a speech at the Trades Hall to unveil an expert independent advisory board for economic growth, and said his plans will focus on three key priority areas: green energy; finance and tech; and promoting “Scotland the brand”.

The new board counts among its members former media executive and star of the Apprentice Mike Soutar, who grills contestants in the latter stages of the BBC show, and Scottish Government adviser Sandy Begbie – who is also the chief executive of Scottish Financial Enterprise.

Among other measures, Mr Sarwar said he wanted to see “greater investment in our airports with steps to open up more direct international routes to and from Scotland”, adding: “We know a huge part of the US population can trace a family heritage back to Scotland – we need to do more to attract them here to chase their history, while at the same time putting money into our economy.”