Tag Archive for tax

New Poll Shows Tax Levels Are Central to Independence Question

December 2, 2010 Stewart Hosie MP No comments

Dundee MP Stewart Hosie today welcomed a new poll showing that 45% of Scots would favour an independent Scotland if the taxes were lower than at present, with only 35% against independence.

While this might seem an obvious statement – that voters would vote for lower taxes, it also shows how central the tax issue is to the question of Independence and reveals that relatively few are opposed to Independence on principle.

The most recent Scottish Social Attitudes Survey, which questions Scots about whether their attitudes to Independence would change depending on whether taxes would be higher or lower than at present, also found that if an independent Scotland were to keep household taxes the same 36% would support independence, almost neck and neck with the 38% who opposed it.

Mr Hosie said; “This new survey gets to the heart of the matter. Independence is not just some obscure political theory. It is about jobs and making people’s lives better. It is about the potential for economic growth and improving household incomes – and when that is realised, support for independence is galvanised.  We have known for a long time that many people who oppose Independence do so because they believe it will lead to higher taxes. It is probably the most-often used argument against Independence – and it is based on a myth.

“This survey shows that if taxes in an Independent Scotland were the same as now or lower, nearly half all Scots voters will back Independence.
“It is only with full financial responsibility and independence that Scots households will see the growth and support they need.

“People across Scotland believe the Scottish Parliament should have responsibility for the most important tax and welfare decisions there is clearly real support for the Scottish Parliament to have far more powers than the limited aims of the Scotland Bill which has been tabled by the Tory-led Coalition Government.

“While the Tories have designed it as a tax trap, the people of Scotland are clear they want the real financial powers of independence to boost the economy and help households.

“We know that had the provision of the Scotland Bill been in place since the start of devolution – which would leave 85 per cent of Scottish tax revenues in the hands of the Tory Treasury at Westminster – Scotland would have been £8 billion worse off instead of better, the equivalent of £1,600 for every man, woman and child.

“This new survey demonstrates beyond doubt that the Scottish people want far more than the modest provisions of the Scotland Bill and that with economic growth and responsibility, people across Scotland want the full powers of independence.”

MP WARNS OVER HMRC ERROR FRAUDSTERS

September 9, 2010 Stewart Hosie MP No comments

Dundee East SNP MP Stewart Hosie has warned that local taxpayers could be targeted by fraudsters after errors made by HM Revenue and Customs left up to six million people across the country facing an unexpected tax bill.

The SNP has led demands in the House of Commons for action, and received an assurance from the Treasury that HMRC will only contact individuals affected by the tax code errors by letter and never email. Mr Hosie had warned that there could be an upsurge of scam emails seeking to take advantage of the errors. It is understood that that 4.3 million taxpayers have paid too much, but 1.4 million have underpaid and will receive demands for the money before Christmas. The average amount of tax owed is £1,428.

Commenting, Mr Hosie said: “As though these unexpected tax demands are not bad enough there are, regrettably, some very unscrupulous fraudsters out there who will try to cash-in. “Local residents need to be alert to scam emails purporting to come from HMRC that offer ‘tax rebates’ in exchange for bank details.

“When the SNP raised this in parliament the Treasury Minister confirmed that HMRC will not contact taxpayers affected by the blunder via email or telephone, nor will they ask for bank details. Any local residents who are affected should be aware of this, and anyone has any concerns I stand ready to pursue matters with the authorities on their behalf.

“This tax fiasco will cause real hardship for a great many households, through absolutely no fault of their own, and the Treasury must now make every effort to ensure that people are not exploited by fraudsters.”

Concerns about the general situation and demands for assurances over the scale of the error, and repayments faced by millions of taxpayers, the SNP were first to call for an emergency statement in parliament. SNP Westminster Treasury spokesperson Stewart Hosie MP said: “Millions of taxpayers face the prospect of an unexpected tax bill through no fault of their own, and yet we have not had answers to the most basic of questions.

“We do yet have absolute certainty on how many people are affected or precisely how much money is involved. We must have clarity on the full extent of these errors, and assurances that taxpayers who face demands, particularly those whose financial circumstances have deteriorated, will not be hounded or face hardship through no fault of their own.

“We need to get the bottom of how and when this problem occurred, when Ministers knew about it, and what action they are taking. It is essential that taxpayers can have confidence in the PAYE system, and Ministers must now get a grip.

“It does seem that this was another mess made under the last Labour government, and it is yet another example of the financial disarray left by Gordon Brown’s administration.

“This whole debacle further underlines the need for Scotland to have control over taxation.”

HMRC Left in Chaos by Labour, Says MP

September 5, 2010 Stewart Hosie MP No comments

SNP MP and Member of the Treasury Select Committee Stewart Hosie has branded the chaos now apparent in the HMRC as “Labour’s last data disaster”.

It has been revealed that nearly six million people in the UK have been paying the wrong amount of tax for the past two years. The mistake means that 1.4m will be hit with average bills for around £1500 to be repaid in the next tax year.

Commenting, Mr Hosie said: “Over their 13 years in government, Labour ministers proved time and time again they simply couldn’t be trusted to manage data.

“The woeful record of the outgoing Labour government includes 25 million child benefit records lost; the names, addresses and anticipated release dates of all prisoners in England misplaced and the bank account information of 600 000 potential army recruits gone astray and this is on top of a depressingly long list of mislaid brief cases, data sticks and laptops.

“Hopefully, this latest debacle will be Labour’s last data disaster but it reinforces that the system simply doesn’t work. Scots shouldn’t be getting saddled with huge tax bills because of UK Government incompetence. Instead, we should have a tax and revenue system, run by Scottish Ministers, which operates in the best interests of Scotland.”

Computer Games Tax Breaks Call to Chancellor

March 1, 2010 Joe FitzPatrick MSP No comments

Dundee West MSP Joe Fitzpatrick who has previously contacted UK Ministers to highlight the need for tax relief for the Computer Games sector has now lodged a motion calling on the Scottish Parliament to lobby the UK Government to implement such a tax break for game production in this years’ budget .

Mr FitzPatrick raised this issue previously with UK Ministers and held a members’ debate in the Scottish Parliament earlier this year on tax breaks for the UK gaming sector. The MSP’s move parallels the move by Tom Watson – the Labour MP for West Bromwich East – who has moved a similar motion at Westminster (Early Day Motion 934) – which has support from Labour, SNP, Tory and Lib Dem MPs calling on the Chancellor of the Exchequer to introduce tax relief for the video games industry.

A recent report by the games industry body TIGA shows that unless a similar tax regime to Canada and France is introduced in the UK it could lead to a decline in the industry. Foreign competitors in the United States of America, Canada and South Korea all offer major tax breaks at either national or regional level for game production or other substantial government financial support

Commenting on his move, Joe FitzPatrick said: “The TIGA Report  shows that Dundee could lose 200 jobs if the UK Government fails to implement tax breaks over the next 5 years, while introducing tax incentives would create 350 Graduate level Jobs and £45 million of extra investment in Dundee over the next 5 years.

“It also shows that over five years the tax measure would cost an estimated £192 million but would deliver £415 million in tax receipts.

“Although the Chancellor ignored the Games Sector’s demands in his pre-budget Report, over the last 12 months virtually every industry expert has championed tax relief on research and development for computer games as a way to create jobs and boost revenue.”

Labour MP Questioned on 10p tax rate compensation vote

July 27, 2009 Uncategorized No comments

jim-barrie-snp-candidateLabour MP Jim McGovern has come under fire after the Government voted down a compensation package for people who lost out when they scrapped the 10p tax rate.

The Dundee West MP voted along party lines to defeat Labour MP Frank Field’s bill for compensation at Westminster although many Labour MPs had reportedly said they supported measures to help those who had suffered as a consequence of the lowest tax band being abolished.

The 10p rate was abolished in the 2007 budget, which was Gordon Brown’s last as Chancellor.

A humiliating defeat looked to be on the cards for the Government when the vote was taken earlier this month, but a backbench rebellion failed to get enough support for the compensation package to be approved.

It is estimated that 500,000 Scottish households will lose out as a consequence of the move.

Dundee SNP Councillor Jim Barrie, who is standing against Mr McGovern in the General Election, said: “Scrapping the 10p tax rate hit people who could least afford it with a huge tax hike. Tax for the lowest-paid workers was doubled overnight.

“Local people will be shocked that Jim McGovern has now voted against a modest compensation package and failed to stand up for his constituents. He did not stand up to be counted with the Labour rebels, the SNP and Plaid Cymru behind Labour MP Frank Field’s compensation Bill. He will need to explain why to the electors of Dundee West.

“The SNP is doing everything in its power to help people through these tough economic times: freezing council tax, phasing out prescription charges and scrapping bridge tolls as well as driving down business rates for small businesses.

“Meanwhile, the Labour UK Government is inflicting shameful tax hikes on low paid workers and pensioners and is wasting billions of pounds on a new nuclear weapons system instead of investing in public services.

“There is no doubt thousands of people on low incomes are worse off since the 10p tax rate was abolished.

“The Government’s clumsy attempts to compensate for their blunder by introducing larger personal tax allowances do not go far enough.

“These people should be taken out of the income tax tier altogether. They cannot afford to shoulder the burden, especially in these difficult economic times. The vote to reject Labour MP Frank Field’s compensation bill simply compounds the damage which the government has done.”

MSP Calls for Tax Support for Video Games Industry

July 27, 2009 Joe FitzPatrick MSP No comments

Joe FitzPatrick, Dundee West MSP said today: “Dundee is a world player when it comes to the computer games industry. From the first days of computer game technology Dundee has been at the forefront of the industry. In 1983 Timex produced the Sinclair ZX Spectrum home computer in Dundee and a generation of the city grew up learning the skills that would make Dundee a Global leader.

“One of the early successes of the Dundee computer game scene was the worldwide hit Lemmings, there was also million plus selling titles such as Earthworm Jim and Rollercoaster Tycoon and of course the huge hit Grand Theft Auto created in Dundee by Rockstar. Dundee is still producing world class games, and last year we had the award winning Crackdown developed by Realtime Worlds which sold over 1.5 Million copies in 2008.

“Dundee is home to 10% of the UK’s digital media companies employing 3,500 people across the city.

Dundee is also leading the way in Education and training. The University of Abertay Dundee has been instrumental in supporting the growth of computer game technology and its graduates have set up companies in the city and across the UK. Abertay had the UK’s first undergraduate degree in computer games technology and Scotland has ¾ of the undergraduate courses currently available in the UK.

“Despite the economic downturn the worldwide industry is booming with computer games sales overtaking DVD sales for the first time last year with £22 billion pounds of global sales.”

However, the MSP believes that this is not the time for complacency, particularly in the light of the recent report which suggested setting up a new digital media centre in Salford to benefit from the pioneering work done at Abertay. Commenting on the recent report, Joe said: “At the present we are seeing the first signs that there may be problems ahead for the computer game industry. In terms of games development the United Kingdom is falling behind, and the countries that are overtaking us are those who have given tax breaks for games development.

“Scottish and UK-based firms must pay tax for research and development, while in countries such as Canada and France rebates are given resulting in a competitive advantage over our companies.

“Colin Macdonald, the Studio Manager for Dundee-based computer games developer Realtime Worlds, recently expressed concern that unless the playing field is levelled, and UK based companies receive a similar tax break such as VAT exemption for games development, then the industry will suffer as a consequence.

“Realtime worlds are not alone in this view, Abertay University, the Chamber of Commerce and the computer games trade body TIGA are all saying the same thing, that unless the playing field is levelled we could lose out in Scotland.

“A top game such as Crackdown takes around 5 years to develop and with tax breaks of up 25% in other countries Scotland and the UK are simply not as competitive, and this is why we are seeing the UK fall behind in the development of new games.

“The Industry are calling for a change to the tax regime as there is firm evidence which shows that easing the tax burden on games development creates jobs and grows the industry.

The MSP points to Canada, which has recently overtaken the UK for games development, a 25% tax break on development has been introduced. This has resulted in a flurry of development in Canada and increased those employed in the games industry by 40%, and also led to 1.5 billion dollars of extra investment

In 2003, the French government gave €4 million in aid to French companies, and they were granted a 20% tax break in 2007. The French tax break has proven an aggressive stimulant to their computer game industry, and produced newfound confidence to French game developers.

Joe added: “The Scottish Chamber of Commerce and TIGA have stated that if Scotland were to receive a similar tax break to bring us back into line with our international competitors it could create an extra11,500 jobs and safeguard thousands more in the industry.
“Companies will go where the price is cheaper, even if development in the UK is of a higher quality. Dundee generates 15% of the UK’s total turnover in computer games, some 150 million pounds annually, and will therefore feel more acutely any downturn in the market caused by a loss of competitiveness.

“Holyrood does not yet have the tax powers to directly support the industry, however there is much we can do in this chamber and I welcome the steps taken by the Scottish Government to support the industry most notably through the funding of the Skillset Media Academy at Abertay which will expand on the Universities expertise and specialise in computer game education.
“The new Academy at Abertay recognises Dundee’s importance as a centre for computer games development and will provide the skilled workforce to ensure Dundee continues to lead the field. Providing the training to produce the next generation of computer game developers is however only half the equation. We must ensure that we have companies for graduates to work for and there is a danger that this may not be the case as the current UK tax regime is beginning to hamper development in Dundee.
Concluding, Joe stressed: “It is vitally-important that this successful industry is supported to allow companies to diversify, explore new ideas and develop new games in Scotland. It has been clearly shown that a VAT exemption for games development would stimulate the market and boost turnover. I have added my name to the industry’s lobbying of the UK Government for a change to the tax regime.”

SNP MP Attacks Westminster Raid on Bingo Clubs

May 16, 2009 Stewart Hosie MP No comments

Dundee East MP Stewart Hosie has warned that the future of Scotland’s bingo clubs is at risk because of a tax hike hidden in the recent budget, which has increased the rate of duty on bingo from 15% to 22%.

The MP has called for parity with other forms of gaming and betting, such as online bingo, sports betting and the football pools.

Earlier, this week, Stewart Hosie moved an amendment to the Finance Bill on the floor of the House of Commons to remove the substitution of 22% for 15% and to restore the pre-budget duty levels. The amendment was defeated when Labour MPs remained loyal to the Government.

Stewart Hosie said: “This tax hike on bingo which is a highly popular social activity, when duty on other forms of gambling including sports betting, casino and online poker and football pools will remain at 15% is unfair.

“In scores of communities across Scotland, the bingo club is a vital part of the social fabric. It offers good quality, safe entertainment and social facilities providing fun, enjoyment and friendship for many people, particularly women. This Westminster tax-hike in the midst of the deepest recession for more than 60 years will affect many in my constituency and across Scotland.

“Bingo clubs may have to close in Scotland in the Labour government will not end its policy of tax discrimination. Since 2006, approximately 90 bingo clubs across the UK have closed. This week, I have received hundreds of letters from customers of Dundee’s bingo clubs and from staff too, all concerned with the situation.

“We are not calling for preferential treatment for bingo clubs, simply a level playing field to allow this important social amenity to continue and to cater for the large number of my constituents who regularly use bingo clubs.”

Dundee Industry to get Holyrood Showcase

March 9, 2009 Joe FitzPatrick MSP No comments

Tax breaks for Computer Games developers would boost business

Dundee West SNP MSP Joe FitzPatrick will be hosting a showcase of the Scottish Computer Game Industry to highlight its importance ahead of a debate in the Scottish Parliament on supporting games development in Scotland.

Mr FitzPatrick, whose Dundee Constituency is the hub of Scottish Computer game development, secured the Members Debate to highlight the need for a change to the tax regime for the development of computer games.

At present companies pay tax on research and development which firms in other countries such as France and Canada do not face. The industry has raised concerns that this could seriously hamper the Scottish based companies who currently lead the world in computer game development.

MSPs will be invited to see first hand the successes of the industry and will have the opportunity to try some of Scotland’s most successful games.

The Event will be held on the 18th March at 1pm – 3pm in Committee Room 4 of the Scottish Parliament, and will be followed by the members debate at 5pm.

Multi million selling games developers Realtime Worlds and the University of Abertay Dundee, which has recently been given Scottish Government funding for a Skillset Media Academy which will specialise in computer game education, will be amongst those putting the MSPs through their paces with the latest technology.

Commenting Mr FitzPatrick said;

‘‘We have world leading computer games expertise in Scotland and I hope that by holding the showcase MSPs will appreciate how important this industry is to our future economic success.

’’Although the computer games industry is continuing to grow, despite the current economic climate, it is not growing as fast as elsewhere and the industry in the UK is at risk of falling behind. UK firms must pay tax on research and development activities, while in countries such as Canada and France rebates are given and this means they have a competitive advantage.

“I have secured a members debate on this issue as it is vitally-important that these successful new industries are supported to allow them to diversify and explore new ideas and develop new games in Scotland.”

DOWNING STREET DOWNTURN GETTING WORSE

February 20, 2009 Stewart Hosie MP No comments

SNP Treasury spokesperson, Stewart Hosie MP, has expressed concern at the publication of figures revealing that the recession has led to a £7bn fall in the amount of tax paid by individuals and businesses in January.

Mr Hosie said:

”It was difficult to imagine how the Downing Street downturn could plummet further, but the bad news is becoming ever more rapid.

”The Treasury’s tax take is being hammered by the economic crisis, and it seems Gordon Brown’s golden goose of a VAT cut has turned out to be a lame duck.

”Perhaps most worryingly UK Government borrowing is now expected to exceed its own forecasts of £77bn – meaning borrowing now stands at 47.8% of the UK’s economic output.

”It is clear that the recession is going to be far deeper than previously thought, certainly more serious than Treasury forecasts suggested, and Gordon Brown has been left looking complacent as the Downing Street downturn plummets new depths.”

MSP WELCOMES NEW MEDIA ACADEMY FOR DUNDEE

February 11, 2009 Joe FitzPatrick MSP No comments

Dundee West SNP MSP Joe Fitzpatrick today welcomed the announcement by the Cabinet Secretary for Education and Lifelong Learning, Fiona Hyslop MSP, that the Scottish Government will be funding a new Skillset Media Academy at the University of Dundee Abertay.

The University of Abertay Skillset Media Academy will specialise in computer game education, building on the University’s well-established expertise the field.

Skillset, the Sector Skills Council for Creative Media has secured the Scottish Funding Council (SFC) funding to ensure Scotland remains at the cutting edge of the highly competitive creative industries by providing first class industry-led education and training. The total package of 5.8 million pounds of funding will support two new Skillset Media Academies and the six collages in the existing Creative Loop Skillset Media Academy.

The support for the computer game industry to develop the talent needed for the next generation was welcomed by Mr Fitzpatrick who is currently gathering cross party support in the Scottish Parliament for a members debate on the UK tax regime for computer game development. UK firms must pay tax on research and development activities, while in countries such as Canada and France rebates are given and this means they have a competitive advantage.

Commenting, Joe Fitzpatrick said; “Today’s announcement is good news for Dundee’s creative industries and in particular our successful computer game developers.

“The new Academy at Abertay recognises Dundee’s importance as a centre for computer games development and will provide the skilled workforce to ensure Dundee continues to lead the field.

“Providing the training to produce the next generation of computer game developers is however only half the equation. We must ensure that we have companies for graduates to work for and there is a danger that this may not be the case as the current UK tax regime is hampering development in Dundee.

“I hope the UK Government will take notice of today’s announcement and take steps to mirror the support the Scottish Government has demonstrated for digital media services and the computer games industry. It is vitally-important that these successful new industries are supported to allow them to diversify and explore new ideas and develop new games in Scotland.”

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