THE increasing number of Scots drawn into paying higher rate tax, engendered by the more or less static level of the higher rate threshold north of the Border, can only look on their English neighbours with a sense of increasing frustration and despair at the widening tax burden. If as many fear the Scottish Budget in December confirms a higher rate threshold some £6,000 lower than south of the Border a hard working Scot earning £50,000 per annum will be paying more than £1,200 more p.a. in income tax. To add insult to injury the nominal take-home pay of a Scot on this salary will actually fall as the national insurance top rate of 12 per cent will now apply up to £50,000 not £46,350 as currently the case. Bizarrely the SNP is content to impose a marginal tax rate of 53 per cent on income between the ever-widening Scottish and English higher rate thresholds (£44,000-£50,000) whilst it flinches from imposing equivalent high rates at the top end of the income scale. So much for the Scottish tax system being progressive, in reality its regressive. Relative to the tax burden in England the differential is proportionately at its greatest at £50,000 declining with income thereafter. Just how far to the left the SNP has moved on taxation can be judged by the fact that (at the time of writing) even the Shadow Chancellor supports the Tory Budget proposals on income tax (McDonnell: We will not reverse the Tory tax cuts for the better off", The Herald, October 31).

No doubt the SNP administration will be deluded into thinking that the continued and increasing divergence between the higher Scottish tax burden than that experienced in England will have little or no impact on behaviour. Well the risks are two-fold, first hoping that ambitious Scots don’t take the high road to better prospects in England and secondly that those working south of the Border are not deterred from seeking employment in Scotland; a very reckless assumption. In reality the geographic disadvantages that Scotland faces, in being remote from the economic power house of London and beyond into Europe, dictate that on competitive grounds the Scottish income tax regime should be no worse than its neighbours and ideally more attractive across the income scale – particularly if Scotland is to attract and retain the ambitious and talented professionals any modern economy requires. Official forecasts continue to predict that economic growth prospects for Scotland are amongst the lowest in the OECD, a continuation of current SNP income tax policies will simply reinforce this lamentable position in the league table.

The continued determination of the SNP administration to punish middle income earners (who now increasingly number teachers, nurses, policemen and many critical public and private sector managers) despite the arguably generous financial settlement in the Tory Budget shows no signs of moderation These short-sighted policies which verge on being vindictive represent a far greater long term risk to the Scottish economy than the worst Brexit scenario can ever deliver.

Raymond Hall,

The Firs, Gartness Road, Killearn.

NOW that the ramifications of the Budget have been established the Scottish Government has moaned as usual that its problems are down to the Westminster Government not giving tit enough money. When challenged on its shortcomings on health it states how much extra it is putting in to the health service, but the main issue is lack of staff. This means attracting experienced staff from south of the Border. These staff will command salaries in excess of £50,000 so will immediately take a big hit in their take-home pay. They will say why bother and remain south of the Border where they receive higher take-home pay.

I hope the Scottish Government soon realises what a "progressive" tax system, whatever that means, does to the Scottish people wanting a fully staffed health service.

Richard Wiggins,

Auchincruive Avenue, Prestwick.

CONGRATULATIONS to Iain Macwhirter on his demolition of the myths surrounding income tax in Scotland ("‘Tartan tax’ won’t be causing high-earning Scots to go south", The Herald, October 31). We should all carry a copy of it on our mobiles for reference.

However, he did leave an opportunity to highlight the hypocrisy of Unionist parties who indulge in mock rage about the Scottish situation. Conservatives, in particular, rant on about Scotland being the highest-taxed region (region!) of the UK, when they themselves were instrumental in forcing the so-called “extra powers” on to the SNP, which they did not need in isolation –when the reality was that the powers were made available to whatever party was in power at Holyrood, including the Conservatives, were they ever to win an election.

It was, in effect, a trap directed at the SNP. If the Conservatives were so concerned about any adverse result here, why did they not boycott the introduction? The question for them is: When they achieve power, will they not only reverse the measures,

but better still, lower the rate of income tax? That would fit in with their credentials as a tax-cutting party – or would their determination that rates north and south of the Border should not differ, stand in the way of that – in which case the powers are a sham.

Douglas R Mayer,

76 Thomson Crescent, Currie, Midlothian.

THE UK Government national debt is currently a few quid short of £2 trillion. What is not widely published is that almost £400 billion of UK Government securities is held by our own Bank of England. It was bought back from financial institutions during the quantitative easing (QE) exercise held to prevent the banking system collapsing in 2008. So we hold our own debt. We don’t even pay interest on the securities held by the BoE as the Treasury gives it with one hand and takes it back with the other.

Despite this jiggery-pokery the financial world keeps turning and it begs repeating the question why in his Budget Philip Hammond will be using taxpayers’ hard-earned taxes to pay almost £50bn in interest payments to financial institutions. If they were happy in 2008 to accept money created out of thin air by the Bank of England’s quantitative easing why not use QE to repay some or all of the national debt and its interest payments? Why not gradually buy back all the national debt with funny money and stick it in the cupboard in Threadneedle Street along with the £400bn there already? It worked before.

David J Crawford,

85 Whittingehame Court, 1300 Great Western Road, Glasgow.