A CALL for a tax rise was narrowly backed by MSPs following a Holyrood debate. A Labour motion, which is not binding, was passed by 33 votes to 30 after the SNP abstained, saying they didn’t want pre-judge discussions taking place before the Scottish Government presents its Budget later this year.

Labour were backed by the Greens and Liberal Democrats, while the Tories opposed the motion.

Alex Rowley, Labour’s interim leader, said an increase in taxes would help pay for public services.

“We said we would put a penny on the basic and higher rates of taxation and introduce an additional rate of 50p for those earning over £150,000 a year, in order to invest in public services,” he said.

Rowley said that would mean people earning below £21,000 would not pay any more in income tax, while anyone earning £61,000 a year, such as an MSP, would be paying an extra £10 per week.

“At a time when we desperately need investment in our public services and in driving Scotland’s economy, it is right to consider using the tax powers of our Parliament in a progressive way to ensure that those who are able to pay a bit more do so,” Rowley added.

Finance Secretary Derek Mackay said the SNP would abstain to “not prejudge the discussion on taxation”.

His party’s MSPs would only vote against a Tory amendment to the Labour motion, which argued there was no case for raising income tax rates in Scotland “above those payable elsewhere in the UK”.

Mackay will publish a discussion paper on taxes later this year, detailing proposals from all the other parties.

He told MSPs: “We look forward to publishing the discussion paper and we encourage all political parties to engage with it. To facilitate that

discussion, at decision time tonight, this Government will not – with the exception of opposing the Tories’

attempts to impose further austerity by reversing the tax decisions that we have taken – take a position on the motion and amendments from

Labour, the LibDems and the Greens.

“I want an open and constructive debate, so my colleagues and I will not prejudge the outcome of the discussion.”

Tory finance spokesman Murdo Fraser said it was reform, not tax rises, that Scotland’s public sector needed.

He said: “The Scottish Government’s discretionary spend might be down on its previous high point in 2010 but, compared with 2007, the year the SNP came to power, there has been no cut in the Scottish Government’s discretionary spending power in real terms.

“The cabinet secretary knows that that is the case.”

Holyrood took control over income tax rates and thresholds last year.

Ministers have so far opted not to change the basic rate of tax, but varied the threshold at which the higher 40p rate kicks in.

At the last Holyrood election, the SNP pledged to freeze tax rates, and not implement UK Government changes to the threshold at which people start paying the 40 per cent tax rate.

It has also promised to raise the personal allowance to £12,750 by 2020/21 by setting a zero rate. The LibDems, like Scottish Labour have pledged to increase the income tax rate by a penny. The Tories pledged to match UK Government tax plans.

According to the Institute for Public Policy Research think tank, Labour’s plan could generate between £1.1 billion and £1.2bn by 2020/21. The SNP’s proposals would raise £300m, and the Tories’ nil.