Scottish independence: People would need two more weeks of work to reach 'tax freedom' says Treasury

 

Senior Reporter

People living in an independent Scotland would have to work for two weeks longer than the rest of the UK to reach the point when their earnings stop going to the taxman and into their pockets, the Treasury has claimed.

According to the free market think tank the Adam Smith Institute, today is "Tax Freedom Day" for the UK – the date on which the average person has paid their share of tax and is now effectively working for themselves.

But the Treasury used the occasion to point out that in an independent Scotland, taxpayers would have to wait until 13 June to reach the same point.

It cited estimates by the Institute for Fiscal Studies (IFS) that in 2016-17 Scotland’s deficit would be £1,000 per head higher than for the UK as a whole, adding that if this hole in the public finances was to be filled through tax increases rather than spending cuts, it would be equivalent to just over two extra weeks of paying tax.

Tomorrow, the Treasury is set to publish a new analysis paper which is expected to claim that everyone in Scotland will be economically better off if the union stays intact.

Danny Alexander, Chief Secretary to the Treasury, said: “As Scotland’s deficit would be £1,000 per head higher than the UK average in 2016-17, taxpayers in an independent Scotland could face working even longer before reaching tax freedom.

“The Treasury will publish the most comprehensive analysis of the fiscal position of Scotland yet produced, which will set out the scale of the UK Dividend for Scotland.”

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
2015 General Election
May2015

Poll of Polls

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Ashdown Group: Client Accountant Team Manager - Reading

Negotiable: Ashdown Group: The Ashdown Group has been engaged by a highly resp...

Recruitment Genius: Account Manager

Negotiable: Recruitment Genius: You will also work alongside their seasoned sa...

Recruitment Genius: Assistant Property Manager

£15000 per annum: Recruitment Genius: Are you looking for your first step into...

Recruitment Genius: Mechanical Design Engineer

£25000 - £40000 per annum: Recruitment Genius: This innovative company working...

Day In a Page

General Election 2015: The masterminds behind the scenes

The masterminds behind the election

How do you get your party leader to embrace a message and then stick to it? By employing these people
Machine Gun America: The amusement park where teenagers go to shoot a huge range of automatic weapons

Machine Gun America

The amusement park where teenagers go to shoot a huge range of automatic weapons
The ethics of pet food: Why are we are so selective in how we show animals our love?

The ethics of pet food

Why are we are so selective in how we show animals our love?
How Tansy Davies turned 9/11 into her opera 'Between Worlds'

How a composer turned 9/11 into her opera 'Between Worlds'

Tansy Davies makes her operatic debut with a work about the attack on the Twin Towers. Despite the topic, she says it is a life-affirming piece
11 best bedside tables

11 best bedside tables

It could be the first thing you see in the morning, so make it work for you. We find night stands, tables and cabinets to wake up to
Italy vs England player ratings: Did Andros Townsend's goal see him beat Harry Kane and Wayne Rooney to top marks?

Italy vs England player ratings

Did Townsend's goal see him beat Kane and Rooney to top marks?
Danny Higginbotham: An underdog's tale of making the most of it

An underdog's tale of making the most of it

Danny Higginbotham on being let go by Manchester United, annoying Gordon Strachan, utilising his talents to the full at Stoke and plunging into the world of analysis
Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police

Steve Bunce: Inside Boxing

Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police
No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat