SNP in bid to force Lords to pay income tax on parliamentary allowance

SNP to push for tax on Lords’ parliamentary allowance

The SNP is making a move to require Members of the House of Lords to pay income tax on their parliamentary allowance. Pete Wishart, the party’s Deputy Westminster Leader, plans to introduce an amendment that would tax peers on their daily £342 allowance. Peers currently receive this tax-free payment for each day they attend Parliament, even if they do not actively participate by speaking, asking questions, or voting. Last year, Lords claimed over £20 million in attendance allowances, all of which were tax-free. The SNP highlighted that this allowed peers to avoid paying up to £9 million in income tax, an amount that could cover Winter Fuel Payments for thousands of pensioners in Scotland.

The UK Labour Government introduced means testing for the Winter Fuel Payments earlier this year, and SNP First Minister, John Swinney, is considering making it universal in Scotland in the upcoming Budget. In addition to the tax proposal, Wishart is also advocating for the abolition of the House of Lords, a longstanding SNP policy. He called on Scottish Labour MPs to support these efforts, criticizing the undemocratic nature and outdated practices of the House of Lords.

Labour has a bill to remove hereditary peers from the Lords scheduled for consideration in Parliament. A UK government source expressed frustration with the SNP’s actions, calling it political posturing. Paymaster General Nick Thomas-Symonds emphasised the government’s commitment to reforming the House of Lords to ensure a more modern and representative second chamber.

A spokesperson for the House of Lords clarified that members do not receive a salary but can claim attendance allowance for their work in Parliament. They defended the Lords as a vital revising Chamber that contributes significantly to legislative improvements and governmental accountability.

In response to these proposed changes, ongoing debates regarding Lords reform, taxation, and governmental accountability continue to spark discussion and opposition between political parties.

Insights:
The SNP’s push to require Lords to pay income tax on their parliamentary allowance brings attention to the issue of taxation fairness and accountability within the political system. By highlighting the tax-free nature of Lords’ attendance allowances and advocating for the abolition of the House of Lords, the SNP aims to challenge traditional structures and promote transparency in governance. This move reflects broader discussions around political reform and the need for modernization in the UK’s legislative bodies. The differing perspectives among political parties underscore the complexity of reforming established institutions and the ongoing tension between tradition and change in the British political landscape.