PAIN AS YOU EARN

JOHN Swinney could struggle to target only high earners if forced to hike Scottish income tax in response to Chancellor Rachel Reeves’ budget, he has been warned.

- BY JOHN FERGUSON

Reeves is understood to be considering increasing the basic rate by up to 2p for the rest of the UK in order to help fill a £30billion black hole later this month.

That could result in a £1billion cut to Scotland's budget leaving the First Minister with a decision to either cut spending or implement his own tax increases.

Graeme Roy, chair of official independent economic forecaster the Scottish Fiscal Commission, told the Sunday Mail it could be challenging to raise this amount from the highest earners.

He said: “It is speculation at the moment but it seems quite likely that Rachel Reeves is going to want to increase tax.