Scottish Labour right to have different tax policy – McDonnell

John McDonnell has said the Scottish Labour leader has “quite rightfully” refused to raise the higher tax band in line with Westminster.

The shadow chancellor has backed Philip Hammond’s Budget plans to raise the 40p higher income threshold to £50,000, saying it puts money in pockets.

People in Scotland are taxed at 41% on earnings above £43,430 and Richard Leonard has said his party would not support raising that level.

Mr McDonnell told Sunday Politics Scotland: “Richard Leonard, quite rightfully because taxation is devolved, put forward the Scottish Labour Party proposals.

“The intellectual basis is this – we all agree on the common principles of a fair taxation system.

“That has to reflect the demographic that we represent and also it has to reflect the devolved nature of our decision making in our country at the moment.

“Richard Leonard, quite rightfully, and the Scottish Labour Party have actually come forward with their tax proposals which are based upon fairness, based upon raising additional monies that will be put into public services.

“That’s exactly the tax proposals and principles that we’re putting forward here.”

People in Scotland earning over £43,430 pay more tax than those in rest of the UK.

Some people on lower wages north of the border are taxed less.

UK Labour’s position is to make the top 5% of earners pay more, Mr McDonnell said.

He also refused to commit to putting a ban on any future Scottish independence referendum in the next Labour manifesto.

It comes despite Mr Leonard saying there would be one.

The shadow chancellor said his party could be expected to oppose another poll, as it was a “distraction” from tackling austerity.