'Sheer incompetence': John Swinney urged to cut taxes amid £1.1bn economic performance gap

John Swinney has been accused of “sheer incompetence” and wasting billions of pounds of taxpayers’ money as the First Minister was challenged to cut taxes.

The Scottish Fiscal Commission estimates there is an “economic performance gap” between Scotland and the rest of the UK of £1.1 billion this year alone.

Scottish Conservative leader Russell Findlay said the SNP’s “anti-business policies are costing a fortune”.

First Minister John Swinney | Press Association

At First Minister’s Questions on Thursday, Mr Findlay said: “SNP tax rises should result in £1.7bn more to spend, but because the SNP economy lags behind the UK, the Scottish Fiscal Commission says there is only £600 million more to spend.

“So under the SNP, there is a £1.1bn economic performance gap and that’s just this year - last year it was another £1bn, and over the last ten years the economic performance gap with the rest of the UK adds up to £5.4bn.

“Does John Swinney now realise the anti-business SNP policies are costing Scotland a fortune?”

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Mr Swinney said: “The important point to consider here is the extra revenue raised from the tax decisions we’ve taken has enabled us to invest in public services.

“One example is the more significant provision of early learning and childcare and the Scottish Child Payment, which is helping to keep children out of poverty.”

Mr Swinney said GDP per capita in Scotland was higher compared to the rest of the UK, and had grown by 10.3 per cent since the SNP came to power in 2007 compared to 6.1 per cent for the UK.

He also claimed the Scottish Government was “business friendly” - an assertion that prompted laughter from the opposition parties in the chamber.

The Scottish Conservatives also urged the First Minister to use the extra money coming the Scottish Government’s way on the back of Chancellor Rachel Reeves’s spending review to commit to a tax break.

Scottish Conservative leader Russell Findlay | Jane Barlow/Press Association

On Wednesday, the Chancellor announced the Scottish Government’s budget would rise by £2.9bn a year, meaning the block grant from the Treasury would increase to £52bn by 2029.

The Chancellor said this was the “largest settlement in real terms since devolution was introduced”.

Mr Findlay said: “The SNP is wasting money on an industrial scale, and unbelievably Labour looked at the SNP’s record and decided to copy them. The spending review signals a return to tax and spend - Rachel Reeves is shafting businesses, workers, farmers and oil and gas.

“John Swinney has enough money now to give Scots a tax break and bring down the burden on Scottish workers and families.”

The First Minister did not commit to a tax cut, instead taking the opportunity to criticise the UK Labour government’s decision to increase employer National Insurance contributions.

Mr Swinney pointed out GDP in the UK had contracted by 0.3 per cent, which he said “could have reasonably been predicted” because of this fiscal policy from the Chancellor.

“There are choices to be made about public expenditure and when he [Mr Findlay] talks about the annual benefits bill, I think he has to be explicit about what he is talking about, what benefits is he going to cut?” Mr Swinney said.

“Because what we believe is important is that we support children to be helped out of poverty. Is that what Russell Findlay wants to stop?

“I think that is what we are now talking about, Russell Findlay wants to end the Scottish Child Payment and consign more children to poverty.”