A Tayside Tory who broke ranks and blasted Kwasi Kwarteng’s “indefensible” tax cuts for the richest has been vindicated after the chancellor abandoned his controversial plans.
Dundee-based MSP Maurice Golden described the UK Government mini-budget as “extreme” and claimed he could not justify abolishing the 45p tax rate to his constituents.
However, Mr Kwarteng’s climbdown was described as a humiliation for Perthshire Tory Murdo Fraser – who had insisted the SNP pass similar measures in Holyrood.
Mr Fraser earlier dismissed talks of economic crisis as “hyperbolic nonsense” and warned taxpayers could leave Scotland if the SNP refused to follow Westminster’s lead.
Splits and U-turns
Splits in opinion following the chancellor’s mini-budget highlighted divisions within the Tory ranks over Mr Kwarteng’s shock measures.
Scottish Tory leader Douglas Ross repeatedly backed the UK Government’s plans despite the Bank of England being forced to intervene.
Immediately after the Chancellor’s U-turn, the Holyrood Conservative chief claimed it was the correct move after all.
On Friday, The Courier revealed Mr Golden’s concerns.
‘Indefensible’
He told us: “When constituents in Dundee have got in touch and asked how I, as a Conservative, can justify the abolishment of the higher rate tax band, I’ve said I can’t and I won’t.
“My duty is ultimately to stick up for the people of Dundee and I don’t think they’re best served through that policy intervention.”
Central Scotland and Fife MSP Liz Smith said there was “understandable concern” over the chancellor’s borrowing plans, but said tax cuts were justified to boost economic growth.
If the SNP Govt here don’t follow the lead of UK Govt in reducing income tax for all (despite having the resources through Barnett to do so) we are in for a fascinating social experiment. We have been told for years by those on the Left that ‘more progressive’ (1/3)
— Murdo Fraser (@murdo_fraser) September 24, 2022
Shortly after the mini-budget, Mr Fraser said he was in “serious doubt” that Scotland’s economy would thrive without emulating Mr Kwarteng’s policies.
In a series of tweets, he claimed the SNP’s arguments in favour of more progressive taxation would soon be exposed as false.
Warning some wealthier taxpayers might leave Scotland, he later said: “The net result will be even less tax revenue for the Scottish Govt to spend/squander.”
He also wrote about the issue in a newspaper column headlined: Nicola Sturgeon needs to follow Kwasi Kwarteng’s lead on tax cuts and economic growth in Scotland’s national interest – but she won’t.
The chancellor’s U-turn has led to the Scottish Tories being mocked by rivals.
Perth and North Perthshire MP Pete Wishart said: “Where are the Scottish Tory calls for the SNP to follow their Westminster bosses and do a U-turn on tax plans we didn’t introduce?”
First Minister Nicola Sturgeon said: “UK Govt U-turns on top tax rate abolition because it’s a ‘distraction’.
“Morally wrong and hugely costly for millions is a better description. Utter ineptitude.”