Scottish Labour leader Anas Sarwar has promised he will scrap peak rail fares forever if he becomes the next First Minister. Sarwar said the so-called “workers’ tax” will go and signalled he would “love” to cut income tax if he replaces John Swinney.
The MSP also said he would tackle the crippling 50% tax rate paid by middle income Scots on part of their earnings.
Sarwar made the comments on the eve of the Scottish Labour conference in Glasgow this week. His party romped to victory at the general election, but the UK Labour Government’s difficult start has seen the Scottish party’s poll rating collapse.
A poll at the weekend showed Labour well behind the SNP and Swinney’s party on course for a fifth term. In an interview with the Record’s Planet Holyrood podcast, Sarwar said of the poll:
“When I took on this job four years ago, we were 34 points behind the SNP. When we were this far out from the last general election, we were 14 points behind the SNP.
“I accept that the poll at the weekend demonstrated a challenging position, but I honestly believe that we can overcome that challenge, that we are on the pitch, that we will compete and we will win the election in May 2026.”
Senior party figures believe their recent difficulties have been directly caused by unpopular Labour Government decisions like cutting winter fuel payments.
Sarwar defended the Government: “We can downplay the scale of the damage done by the last Tory government and what this incoming UK Labour Government has had to grapple with and try to overcome.
“Over time, you’ve had governments come in when public services were broken or the public finances were shot to bits, or when the economy was flat lighting. This government has come in with all three at the exact same time.”
He added: “The decision that the Prime Minister and the Chancellors had to make is, do you stabilize the public finances? They chose to do so. Do you end the era of austerity? They have done so decisively.”
Sarwar intends to use his conference to showcase the positive alternative a Scottish Labour Government would make. The priorities for him will be putting more money into people’s pockets and reforming the NHS.
The SNP Government incensed passengers when they reinstated peak rail fares after initially scrapping them on a short term basis. Sarwar said of the Government’s decision to reintroduce a two-tier rail fare system widely believed to be a rip off:
“It is economically the wrong decision, socially the wrong decision, and environmentally the wrong decision. That’s why a Scottish Labour Government will remove the peak rail fares to make sure we are reducing the cost of living crisis and making sustainable transport a thing for the future.”
The SNP Government says scrapping peak fares did not result in a shift to rail, but Sarwar said he would axe them for good: “They didn’t market it properly. I have already spoken to countless individuals who have gone back to using motor vehicles instead of the trains in order to get to work, or indeed choosing to work from home instead of going into the office.
“I’m not saying that working from home is the wrong thing to do, but if we are going to reinvigorate our high streets and ramp up productivity in our country, then that also means increasing the footfall in our town centres and our city centres.
“So we are going to do the right thing for businesses, the right thing for the economy, and we’re going to do the right thing for the environment, and that is to remove peak rail fares and help alleviate the cost of living crisis.”
The SNP Government has chosen to raise revenue in recent years by increasing income tax rates and introducing a new band for better off Scots.
Sarwar said he would not write his first Budget ahead of an election, but he gave a clear steer he will push to reverse some of the cuts: “I want to reduce the tax burden and I want us to stop using income tax as a substitute for economic growth or as a mechanism to make up for government waste or government incompetence.”
He added: “I would love to cut income tax, particularly for those on the lowest incomes.”
Sarwar also specifically mentioned an anomaly that has arisen due to income tax being devolved but national insurance being reserved to Westminster. Scots earning around £45,000 pay a combined 50% marginal tax rate, whereas for people in England it is 28%.
He said this “discrepancy” is hitting people on middle incomes and having a “detrimental impact on attracting talent into Scotland”. He continued: “That will have to be corrected, but we will have to do that in a way that is sound with the public finances.”
Sarwar said more details of his plan to “clear the NHS backlogs” will be revealed at conference: “I want fewer chief executives. I want fewer pen pushers. I want fewer managers. I want more nurses. I want more doctors. I want more consultants. I want more treatments to be happening in the NHS.”
He said voters face a clear choice in May: “They face five more years of the SNP and John Swinney, or they have the choice of a Scottish Labor government and with me as First Minister.”
To sign up to the Daily Record Politics newsletter, clickhere