Scottish income tax policy hits business investment

A third of businesses have felt an impact on staffing and investment as a result of the Scottish government’s income tax policy, researchers have found.

The Scottish Business Monitor (SBM), produced by the Fraser of Allander Institute at the University of Strathclyde, showed 17 per cent indicated it was having a significant effect on their operations.

A further 17 per cent said there was a “fair amount” of impact on their business although 57 per cent suggested they had seen little or no change. More than 300 businesses took part in the research which was conducted across May.

Workers in Scotland earning more than £28,867 pay more income tax than their UK counterparts.

Scotland also has six income tax bands, compared with three set by