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Governments policies can narrow or widen income and wealth inequality.

Scottish Government policy

The Scottish National Party (SNP) have been in power in Scotland since 2007. Unlike UK Conservative governments over much of the same period, SNP-led Scottish Governments have given reducing inequality a far higher priority.

One example of Scottish Government policy to reduce inequality would be in terms of its progressive income tax level policy.

Scottish Government taxation policy

From April 2017, the Scottish Government changed the tax policy to have five bands as opposed to the three that the UK Government uses. They can do this as varying taxation is a power devolved to the Scottish Government.

Income tax levels in Scotland from April 2023. (Source: ����tv News)

Income tax levels in England, Wales and Northern Ireland from April 2023. (Source: ����tv News)

Progressive taxation in Scotland

When comparing the above two tables, someone living in Scotland on a lower income of about £15,000, would pay around £21.62 less in income tax than the rest of the UK. However, someone on an income of £50,000, would pay £1552.48 more in income tax. For the highest earners with a salary of £200,000, they would pay £4857.88 more in Scotland than elsewhere in the UK.