A STRONG OPPOSITION - A STRONGER SCOTLAND

THE SCOTTISH CONSERVATIVE AND UNIONIST PARTY MANIFESTO 2016
A strong economy for your job and business
Top priorities:
• Freezing business rates and conducting a thorough review
• Developing skills that align with business demand
• Supporting rural businesses across Scotland
Why we need a strong opposition
Scotland’s businesses have been shouldering an increasing burden of taxation over the last few years,
with non-domestic rate income rising from around £1.8bn before the SNP took power to a projected
£2.8bn this financial year. Business rate income accounts for an increasing percentage share of council
funding too, with central grants falling. The poundage rate itself has increased by 19% since 2010. Recent
changes south of the Border also mean the business rate regime in Scotland has become less competitive,
with the large business supplement payable at a higher rate and lower threshold. In addition, the SNP’s
plans for income tax will make Scotland the highest taxed part of the United Kingdom.
In our rural areas, the SNP’s CAP payment fiasco will go down in history as one of the worst examples
of mismanagement by a Scottish government. The SNP’s new computer system to administer CAP
applications and payment still doesn’t work and the SNP have known for over a year that it didn’t work,
but have repeatedly refused to admit continued failings. The entire programme was expected to cost
£88m but is now forecast to total approximately £180m. While the government can ill afford wasting such
sums of money, the hardship this brought on our farmers and the damage to our wider rural economy
is unforgivable.
A SCOTTISH CONSERVATIVE AND UNIONIST APPROACH
Competitive and Fair Taxation
for Scotland
Our taxation regime has to achieve both objectives of
fairness and competitiveness. It is fair to ask those who
can afford to to pay a little more, but this should not
jeopardise our competitiveness and - consequently - our
attractiveness as a place to live and work. Personal and
business taxes therefore have to be balanced to stimulate
investment and employment and raise sufficient revenue
to fund our public services. Scottish Conservatives will
take such a balanced approach into the next Parliament.
Building on the final report of our Independent
Commission for Competitive and Fair Taxation, we
believe income tax rates should not rise above those in the
rest of the UK, LBTT should be adjusted to reinvigorate
the housing market and council tax reformed into a more
local and fairer tax.
On our main business tax, we are pleased that the
government is taking forward a rates review and we
will ensure this is done thoroughly and explores several
alternative options for reform in cooperation with our
business community. All major business organisations -
led by the retail sector - have called for reform and it is
clear we need to act to put in place a more responsive,
simpler and more flexible system. Regardless of the
outcome of the review, however, Scottish Conservatives
believe that the burden of business rates should not keep
increasing and we would therefore freeze business rates
until the recommendations of the review are put fully in
place. That means ensuring a revenue neutral revaluation
in 2017 and a frozen poundage rate thereafter, with
any increases in revenue only as a result of increased
buoyancy. In addition, we remain committed to doubling
the Business Rates Incentivisation Scheme so that local
authorities are allowed to keep all 100% of additional
revenue raised beyond their annual buoyancy targets.
We have studied the evidence on Air Passenger Duty,
alongside the final report of our Tax Commission, and
A STRONG OPPOSITION. A STRONGER SCOTLAND 35