New analysis – Labour tax plans to hit thousands of low income workers in Dumfriesshire

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Labour’s tax hike on working people could hit the incomes of thousands of the lowest income workers in Dumfriesshire new analysis has shown – as the party’s proposals continues to unravel.


Labour announced last week they want to increase the basic rate of income tax for 2.2 million people in Scotland – including 500,000 pensioners. While Labour have claimed that those on incomes between £11,000 and £20,000 could apply for a rebate, they have failed to acknowledge that many people do not claim for benefits they are entitled to.

In fact UK Government figures show that around a third of people entitled to claim for certain benefits do not claim them.


Commenting, Joan McAlpine said:


“People in Dumfries and Galloway already face having the lowest wages in Scotland, the last thing local people need is more taxes; never mind complicated and unworkable rebate applications to mitigate the cost of Labour tax hikes.  


“Since announcing their plans for a tax hike Labour have claimed that their proposed rebate would protect the poorest workers– but the fact is that Labour have no way of telling us how this scheme would work, or how they could guarantee that the rebate gets to those who need it most.  What we do know is that if Labour ever got into power everyone would have to pay more taxes.

“During the budget debate last week we had the extraordinary spectacle of Labour’s finance spokesperson dismissing serious questions on how Labour’s proposed rebate would work as mere ‘details’ – now we know Labour’s plans could hit thousands of the people in  Dumfriesshire.


“The fact is Labour don’t have a clue how their plans would work or how many low-earners in this region would be hit – these plans aren’t worth the back of a fag packet they were written on.


“While the SNP want to give the lowest paid workers in Dumfriesshire a pay-rise, Labour want to give them a tax-rise – and Labour will have to answer to local workers for their regressive plans at the election in three months’ time.”


An estimated one million taxpayers in Scotland earn between £11,000 and £20,000. If this average level of uptake was maintained, around 350,000 people on low incomes nationwide would miss out on Labour’s rebate – including thousands in Dumfriesshire.

Notes to editors.


Working Tax Credit

•    Central estimate of the Working Tax Credit caseload take-up rate in 2013/14 is 68 per cent.  – Page 6


Pension credit

•    Caseload take-up estimated to be between 61 per cent and 64 per cent overall in 2013/14


An estimated one million tax payers in Scotland earn between £11,000 and £20,000.