Research published by the IPPR Scotland today (31 January 2018) has found that the proposed income tax cuts on lower earnings, through a new Starter Rate, will not be effective at supporting the poorest households in Scotland, and will not help the Scottish Government to meet its new targets on reducing poverty.

Ahead of the Scottish Parliament debate on budget later today, John Downie, Director of Public Affairs at the Scottish Council for Voluntary Organisations (SCVO) has said: “Income tax cuts for the low paid will not significantly reduce poverty in Scotland, given that large numbers of those in poverty in Scotland don’t pay income tax, in part because many are either unemployed or earn at levels low enough to fall under the threshold. As today’s research from IPPR shows, we need a rounded approach that considers both tax and benefits if Scotland really is to reduce poverty rates, and we believe that the Scottish Government must utilise the benefits system to really dig into poverty alleviation.”

For more detailed analysis please see SCVO’s briefing on the IPPR Scotland research and the budget debate.