The SNP has hit out at plans to increase taxes on savings in the next Budget. 

In the run-up to Labour Chancellor Rachel Reeves’s Spring Statement later this month, a raft of leaks have not only hinted at swingeing cuts to social security to build a war economy, but also plans to lower the tax-free threshold on ISAs from £20,000 to £4,000.

Citing research they commissioned from the House of Commons Library showing 1.2 million adults in Scotland hold an ISA, the SNP claim, assuming 5 per cent interest, the move could cost savers lucky enough to have deposits of £16,000 up to £5,132 over the next five years.

Calling on the plans to be ditched, SNP economy spokesman Dave Doogan MP said: “The cost of energy, food and living is soaring, the UK economy is stagnating, unemployment is rising, and now the Chancellor wants to slash people’s savings too. It stinks.

Refusing to be drawn, Ms Reeves said: “At the moment, there is a £20,000 limit on what you can put into either cash or equities, but we want to get that balance right.”