Tax standoff as Westminster threatens £1billion budget cut

Scotland's finance secretary says she may have to “potentially revisit” her tax plans amid reports the Chancellor will increase income tax in the UK Budget.

- CRAIG MEIGHAN & NEIL POORAN, PA SCOTLAND

Shona Robison said the Scottish Government had a "very limited” set of levers to respond if Rachel Reeves makes the tax decision on Wednesday, November 26.

The Fraser of Allander Institute has estimated a 2p income tax hike in the UK Budget could cut Scotland’s funding by £1 billion because of the way the fiscal framework operates.

Ms Robison has requested an urgent meeting with the Chancellor and says Ms Reeves should ditch her fiscal rules and, instead, deliver investment “to grow the economy and support people with the cost of living”.

Ms Robison said the fiscal framework does not take account of changes to national insurance-another levy the Chancellor is reportedly considering changing.