The Tories are to blame for Scotland’s tax mess

Lost amid much of the commentary on Kwasi Kwarteng’s income tax and stamp duty cuts is that they will not apply to Scotland. Income tax is largely devolved to Holyrood, as is stamp duty, or land and buildings transaction tax as it is now known north of the border. The Barnett formula, the fiscal mechanism by which the Scottish government is funded, means the devolved administration will be given an additional £630 million as a result of the Chancellor’s new measures. However, Nicola Sturgeon is under no obligation to use it for similar tax cuts in Scotland. She can spend it elsewhere or not spend it at all.

The SNP leader was quick to deprecate Kwarteng’s tax cuts, saying the ‘super wealthy’ would be ‘laughing all the way to the actual bank’. But if she chooses not to match the Chancellor’s plan, the gap between what the Scots and the English pay in tax will widen further.