Nicola Sturgeon is considering giving all Scots a guaranteed ‘citizens’ income’ – and paying for it by increasing taxes among the middle classes.
The Scottish First Minister unveiled a series of expensive pledges, including scrapping the public sector pay cap, which has saved millions by limiting annual pay rises for state workers to just 1 per cent.
Free personal care will be extended from pensioners to everyone under the age of 65, teenage girls will get free tampons, and the nationalisation of the Scottish rail operator will be considered.
Unveiling her party’s legislative agenda for the coming year, Miss Sturgeon said the idea of the state making regular payments to all Scots – a ‘citizens’ income’ – was an ‘idea that merits deeper consideration’.
First minister Nicola Sturgeon, pictured with two members of her cabinet, unveiled her party’s legislative agenda for the coming year including plans to scrap the public sector pay cap and offer a ‘citizens’ income’ to all Scots
And she suggested the extra money for all pledges could come from a more ‘progressive’ income tax system – code for higher rates for the middle classes.
But critics said the extra spending could harm the Scottish economy still further.
Other plans unveiled by Miss Sturgeon will target motorists by phasing out diesel and petrol cars by 2032 – eight years before England; and imposing low-emissions zones in the four largest cities.
The Scottish First Minister suggested the extra money for all pledges could come from a more ‘progressive’ income tax system
Under a citizens’ income scheme, most benefits and the state pension would be scrapped and replaced with a regular payment to everyone
The Scottish government will also extend the presumption against short sentences from three months to 12 months, meaning rapists and robbers could escape jail.
Miss Sturgeon confirmed plans to scrap the 1 per cent pay cap for public-sector workers – piling pressure on Theresa May to do the same south of border.
And she said that now the Scottish Parliament had power over income-tax rates and bands, the time was right for a discussion on how these could be used in a ‘responsible and progressive’ way. This will be interpreted as a sign that taxes could go up for those on higher incomes.
Under a citizens’ income scheme, most benefits and the state pension would be scrapped and replaced with a regular payment to everyone.
The Scottish Greens – who are propping up the minority SNP government – say this would see every working adult getting £5,200 a year, while a single parent with two children would get £10,400.
The Scottish Greens – who are propping up the minority SNP government – say this would see every working adult getting £5,200 a year, while a single parent with two children would get £10,400
Miss Sturgeon said Scotland will provide ‘global leadership’ in tackling ‘period poverty’ – where some low-income women can struggle to afford sanitary protection
They say this would cost £1 billion in Scotland if the basic rate of income tax was increased from 20 to 30 per cent and the top rate raised from 45 to 50 per cent. There could also be a super tax on high incomes. Speaking in the Scottish Parliament, Miss Sturgeon said the idea of a citizens’ income was attracting interest internationally and there were ‘arguments for and against’.
‘But, as we look ahead to the next decade and beyond, it is an idea that merits deeper consideration,’ she said.
‘I can therefore confirm that the Scottish Government will work with interested local authorities to fund research into the concept and feasibility of a citizens’ basic income, to help inform Parliament’s thinking for the future.’
On health, Miss Sturgeon announced plans to expand free personal care to those under 65 who are suffering from conditions such as dementia or motor neurone disease.
The legislation, dubbed Frank’s Law after former Dundee United footballer Frank Kopel, who died after battling dementia, will be fully implemented – at an estimated cost of £100 million a year.
To help tackle inequality, she announced proposals for a new £50 million fund for addressing child poverty, with the money to be available over five years.
Miss Sturgeon said Scotland will provide ‘global leadership’ in tackling ‘period poverty’ – where some low-income women can struggle to afford sanitary protection.
The Scottish Government will provide free access to such products for students in schools, colleges and universities.
Scottish Conservative leader Ruth Davidson warned that the First Minister was ‘opening the door on greater tax rises’.
She added: ‘We say stop taking ever more money from the pockets of Scotland’s workers – we must instead go for growth.’