Unbearable Rebate Plan 'Not Fit For Purpose'
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.
UK Government figures show that approximately one in three people entitled to claim for certain benefits do not claim them.
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 Aberdeen Donside.
Commenting, Mark McDonald said:
“Since announcing their plans for a tax hike on low-earners, 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.
“The reality is Labour cannot guarantee that a single person in Aberdeen Donside would claim or receive this £100, but if Labour ever got into power everyone locally 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 Aberdeen Donside they have specifically pledged to protect.
“Last week the Resolution Foundation told us that even if Labour’s rebate plans are workable, they don’t make their planned tax hike any more progressive. The fact is Labour don’t have a clue how their plans would work or how many low-earners in Aberdeen Donside 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 Aberdeen Donside 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.”
Working Tax Credit
• Central estimate of the Working Tax Credit caseload take-up rate in 2013/14 is 68 per cent.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/485220/cwtcchb-take-up2013-14.pdf - Page 6
• 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.