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Budget row over £140m tax hit for Scotland’s emergency services

Chancellor Philip Hammond
Chancellor Philip Hammond

The SNP is trying to pin its “slap dash” approach to governing on the Chancellor as the party seeks to slash the tax bill for Scotland’s emergency services, says a Perthshire MP.

Nicola Sturgeon’s party said it has made 139 pleas to the UK Government to end a discrepancy which sees the police and fire services in Scotland paying £35m a year in VAT when other territorial forces in the UK are exempt.

The Nationalists are making their latest call for Philip Hammond to free the emergency services of the tax liability ahead of Wednesday’s Budget.

But Luke Graham, the Scottish Conservative MP for Ochil and South Perthshire, said the situation is of the SNP Government’s own making.

“This was a huge mistake on the part of the SNP, who were aware that this would happen before they finalised the decision,” he said.

“Once again, this is the SNP being more concerned with politics than people.”

He said the Nationalists are “expecting the UK Government to fix the problems they caused because of their slap dash approach to governing”.

The tax discrepancy emerged in four years ago when the eight regional police forces north of the border merged to become Police Scotland.

Ben Macpherson, the SNP MSP, said “Tory inaction and pig-headedness” has cost Scotland’s frontline emergency services £140m since 2013.

He said the UK Government had already made exemptions for academy schools, Highways England and the BBC.

“To end this injustice, however, not only should the VAT levy be dropped but the UK government should also refund the £140m that Scotland’s police and fires services have already paid,” he said.

Meanwhile, the Church of Scotland has weighed in on the Budget by calling on the Chancellor to end the benefits freeze, halt the roll-out of Universal Credit and increase the social fund funeral payment.

Mr Hammond will present his tax and spending plans to MPs on Wednesday afternoon at a time when his position is under threat from pro-Brexit colleagues, who believe his Europhile stance is undermining the EU departure.

The Home Counties MP has already announced plans to get 300,000 homes built a year, which will see cash flow to Holyrood for spending on housing in Scotland.