Cost of living: Raise tax to help the poorest, says STUC

The STUC says we need to have a "grown up conversation" about tackling poverty

Scottish ministers are being urged to use their tax raising powers to help fund public sector pay rises and provide more help for the poorest.

The Scottish Trades Union Congress (STUC) says this week's budget could raise an extra £1.3bn to help address the cost of living crisis.

STUC general secretary Roz Foyer said it was time for politicians to be "stepping up to the plate".

The Scottish government said Scotland already had a progressive tax system.

Social Justice Secretary Shona Robison refused to reveal what might be in Thursday's budget statement, but said Scotland's tax system already took more from those "with broader shoulders".

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Scotland, like other parts of the UK is facing a wave of strikes this winter by public sector workers who want increases that reflect the soaring cost of living.

A STUC report has proposed a range of measures to raise more money within the scope of the Scottish government's devolved powers.

The STUC estimates this could raise an extra £1.3bn of additional revenue a year, with an extra £2bn possible through more complex reforms to the tax system in the longer term.

General secretary Roz Foyer said she sympathised with the Scottish government because she believed it should be getting more support from Westminster - but she insisted there were measures available to it.

She told the BBC's The Sunday Show: "While we're facing the next two years of a UK Tory government that is no friend of ordinary people and will continue to make our lives worse, we need radical action from the Scottish government who claim to be on the people's side."

Ms Foyer said that while strikes - particularly at Christmas - may cause disruption, many workers felt they had no other option.

"I have never seen such high public support for strike action," she siad. "I think the reason for that is because 80% of workers out there are in the same boat."

She added: "There's a real fear. People can't sustain their lives. People are not getting Christmas anyway because they can't afford it.

"At the end of the day I think people are quite happy to see somebody fighting back for them because right now the politicians are failing us. So right now I want to see them stepping up to the plate and showing us they are on our side."

Shona Robison, cabinet secretary for social justice, housing and local government, said the Scottish government's budget had fallen by 10% in real terms due to inflation.

She also highlighted measures that had been put in place to help families such as the Scottish Child Payment and the Fuel Insecurity Fund.

She told the Sunday Show: "We are looking to see what more we can do but we have very limited tax raising powers, we have very limited borrowing powers.

"Despite that we have a more progressive taxation here in Scotland and we have helped with public sector pay, putting £700m into the pockets of public sector workers to help people with this cost of living crisis."

Scottish Conservative finance spokeswoman Liz Smith said Scotland already had the highest income tax rates in the UK.

She said: "Any widening of the tax differential would put us at an even greater competitive disadvantage.

"Those on the 41p rate are not by any means top earners - they are middle-income Scots who are already feeling the squeeze from the cost of living crisis."