top of page

Income Tax Reform Needed To Boost Growth In Scotland



Edinburgh and Glasgow | Rathbones, one of the UK’s leading wealth and asset management groups and one of the largest in Scotland, has called for a renewed focus on Scotland’s long-term economic competitiveness to attract investment, skilled professionals and entrepreneurs.


Rathbones makes its intervention following Anas Sarwar’s appointment as Minister of State for Trade in Andy Burnham’s new UK Government. The wealth manager, which employs more than 400 people across its two offices in Scotland, said Sarwar’s role creates an opportunity to put investment and business in Scotland higher up the national agenda.


Rathbones acts for a range of clients across Scotland, including professionals in key sectors such as energy, law and accounting, business owners, as well as charities and IFAs. The wealth manager highlighted Scotland’s devolved income tax regime as ripe for review. Scotland has six income tax bands, compared with three in England and Wales.


Higher earners in Scotland pay 42% income tax from £43,663, compared to 40% elsewhere in the UK, while top earners face up to 48%.


Rathbones said this complexity and divergence from the rest of the UK risks becoming a barrier when employers are trying to recruit experienced talent or persuade people to relocate north of the border.


Gordon Lawrie, Head of Rathbones’ Edinburgh office, said:

“Having a senior Scottish Labour figure at the heart of government in Westminster presents an opportunity to strengthen Scotland’s voice on the factors that will shape its long-term competitiveness. Across Scotland, we act for people in leading businesses and world-class universities and see the challenges they face in attracting and retaining skilled senior people.”

“There is a clear tension between Scotland’s devolved income tax regime and wider UK growth ambitions. The current system is significantly more complex than elsewhere in the UK and places a materially higher burden on many professionals, business owners and senior executives. Our advisers see individuals who work in Edinburgh but choose, for tax reasons, to live south of the border and commute – this is not good for Scotland.”


Rathbones said the new administration looking to drive growth across the UK should champion policies that strengthen competitiveness, encourage investment and support the attraction and retention of talent.


Adam Drummond, Head of Rathbones’ Glasgow office, said:

“The income tax regime may be a deliberate policy choice, but it has consequences. A more punitive and complex tax system risks weakening Scotland’s attractiveness as a destination for investment, entrepreneurship and skilled workers at a time when growth is the priority.

“Ensuring Scotland remains an attractive place to live, work and build a business should be central to the UK’s growth agenda. A simpler, more competitive system would help Scotland benefit fully from the talent and investment it needs.”



Most Read

New Wellbeing Programme Sees Aberdeenshire Business Branch Out

New Wellbeing Programme Sees Aberdeenshire Business Branch Out

Two former teachers from Banchory, Aberdeenshire have built a horticultural design and care business, turning an idea into a full-time venture, with Business Gateway.

Black Talent Awards Unveils 2026 Finalists

Black Talent Awards Unveils 2026 Finalists

The Black Talent Awards (BTA) has unveiled its 2026 finalists as the national platform prepares to mark its fifth anniversary, celebrating five years of recognising Black professional achievement, leadership, entrepreneurship and impact across the UK.

Rising Costs And Work-Life Balance Are Driving Britain’s Home Business Boom

Rising Costs And Work-Life Balance Are Driving Britain’s Home Business Boom

New research from garden building specialists Dunster House explored the booming backyard business economy, with surveying exclusively people who operate from their garden or home.

Categories

Jul 24
2 min read


Edinburgh and Glasgow | Rathbones, one of the UK’s leading wealth and asset management groups and one of the largest in Scotland, has called for a renewed focus on Scotland’s long-term economic competitiveness to attract investment, skilled professionals and entrepreneurs.


Rathbones makes its intervention following Anas Sarwar’s appointment as Minister of State for Trade in Andy Burnham’s new UK Government. The wealth manager, which employs more than 400 people across its two offices in Scotland, said Sarwar’s role creates an opportunity to put investment and business in Scotland higher up the national agenda.


Rathbones acts for a range of clients across Scotland, including professionals in key sectors such as energy, law and accounting, business owners, as well as charities and IFAs. The wealth manager highlighted Scotland’s devolved income tax regime as ripe for review. Scotland has six income tax bands, compared with three in England and Wales.


Higher earners in Scotland pay 42% income tax from £43,663, compared to 40% elsewhere in the UK, while top earners face up to 48%.


Rathbones said this complexity and divergence from the rest of the UK risks becoming a barrier when employers are trying to recruit experienced talent or persuade people to relocate north of the border.


Gordon Lawrie, Head of Rathbones’ Edinburgh office, said:

“Having a senior Scottish Labour figure at the heart of government in Westminster presents an opportunity to strengthen Scotland’s voice on the factors that will shape its long-term competitiveness. Across Scotland, we act for people in leading businesses and world-class universities and see the challenges they face in attracting and retaining skilled senior people.”

“There is a clear tension between Scotland’s devolved income tax regime and wider UK growth ambitions. The current system is significantly more complex than elsewhere in the UK and places a materially higher burden on many professionals, business owners and senior executives. Our advisers see individuals who work in Edinburgh but choose, for tax reasons, to live south of the border and commute – this is not good for Scotland.”


Rathbones said the new administration looking to drive growth across the UK should champion policies that strengthen competitiveness, encourage investment and support the attraction and retention of talent.


Adam Drummond, Head of Rathbones’ Glasgow office, said:

“The income tax regime may be a deliberate policy choice, but it has consequences. A more punitive and complex tax system risks weakening Scotland’s attractiveness as a destination for investment, entrepreneurship and skilled workers at a time when growth is the priority.

“Ensuring Scotland remains an attractive place to live, work and build a business should be central to the UK’s growth agenda. A simpler, more competitive system would help Scotland benefit fully from the talent and investment it needs.”



Most Read

New Wellbeing Programme Sees Aberdeenshire Business Branch Out

New Wellbeing Programme Sees Aberdeenshire Business Branch Out

Two former teachers from Banchory, Aberdeenshire have built a horticultural design and care business, turning an idea into a full-time venture, with Business Gateway.

Black Talent Awards Unveils 2026 Finalists

Black Talent Awards Unveils 2026 Finalists

The Black Talent Awards (BTA) has unveiled its 2026 finalists as the national platform prepares to mark its fifth anniversary, celebrating five years of recognising Black professional achievement, leadership, entrepreneurship and impact across the UK.

Rising Costs And Work-Life Balance Are Driving Britain’s Home Business Boom

Rising Costs And Work-Life Balance Are Driving Britain’s Home Business Boom

New research from garden building specialists Dunster House explored the booming backyard business economy, with surveying exclusively people who operate from their garden or home.

Categories

Gordon & MacPhail Appoints New Global Marketing Director

Gordon & MacPhail Appoints New Global Marketing Director

Gordon & MacPhail, the Elgin-based, family-owned whisky specialist, is welcoming Jo Coomber as its new Global Marketing Director.

Six In 10 Millionaire Investors Have Considered Leaving The UK

Six In 10 Millionaire Investors Have Considered Leaving The UK

More than six in ten millionaire investors have considered leaving the UK because of concerns over taxation, new research from Wealth Club, the UK's leading non-advised investment service for high-net-worth individuals, shows.

The Rise Of The “Forever Renter” And What This Means For The Market

The Rise Of The “Forever Renter” And What This Means For The Market

The biggest shift in the property market is a growing number of people who could buy, deciding not to. For a hundred years, the property industry has run on one assumption: renting is a waiting room, ownership is the destination.

Recent Posts

bottom of page