SNP likes Basic Citizens Income idea even though it would mean huge tax hike – John McLellan

A Universal Basic Income or Basic Citizens Income simply does not add up, whatever you call it, writes John McLellan.

First Minister Nicola Sturgeon is said to be attracted by the idea of paying everyone a basic income

Because money no longer appears to be any object, there is a belief in some quarters that the financial response to the pandemic proves debt is an illusion, markets don’t work and capitalism is dead.

It is also giving weight to the campaign for a Basic Citizens Income, in which everyone is paid an allowance by the government no matter what they earn, as a simpler way of delivering benefits. Its most recent advocate is the Reform Scotland think-tank which is arguing for a universal annual payment per person of £5,200.

It would cost £20bn and be part-funded by scrapping the £12,500 personal tax allowance and increasing income tax by eight per cent. All quite painless if you say it quickly enough, but it instantly increases even the lowest earner’s tax by over £3,000.

All working people would become state clients, undermining the principle that the government has no money of its own, just what it takes in tax, and although the theory is work must always pay, everyone would have to work very hard indeed to make up pay lost to a such a massive tax hike.

Yet First Minister Nicola Sturgeon says she is attracted, but warns that UK Government co-operation is needed because taxation policy is reserved, which sounds like the groundwork for future division.

But at a time when the Chief Economist says the Scottish economy could shrink by a third, how it will grow again if workers face the biggest disincentive in taxation history is anyone’s guess.

The only illusion is that an economy can be taxed into recovery.

Solidarity between comrades?

Solidarity in the bright new Labour dawn under Sir Keir Starmer seems some way off, judging by a comment this week about doughty Leith councillor and election candidate Gordon Munro.

Speaking about the return to favour of Edinburgh South MP Ian Murray, a senior figure told The Herald newspaper: “There seems to be some kind of idea that Ian Murray received more resources during 2017 because he was pally with Kez [ex-leader Dugdale].

“Comparisons are being made between him and Gordon Munro. Gordon didn’t get more funding because, frankly, there wasn’t any and the polling did not show that he would win his seat. He also didn’t do the work needed. The party had incentives, so you got more leaflets or resources if you hit targets for knocking doors. He didn’t meet the targets.”

First up against the wall, comrade...