THE row over handouts and benefits on offer in Scotland but not in England is set to intensify with plans to offer tax breaks to writers, painters and musicians north of the border.

The scheme – which will be partly funded by English taxpayers – will give artists tax breaks worth up to £15,000 a year. The Scottish National party hopes it will stimulate the country’s cultural output.

Scottish ministers have already announced the scrapping of university tuition fees and cuts in business rates for most small companies The new proposals – due to be announced in the autumn – are aimed at encouraging home-grown writers, musicians and painters to stay in Scotland as well as attracting talent from elsewhere. Artists would continue to pay the Inland Revenue and would then be able to claim a rebate from the Scottish executive.

A similar scheme introduced in Ireland was criticised for allowing wealthy artists such as Bono, U2’s lead singer, and Frederick Forsyth, the bestselling political thriller writer, to pay less tax. Details of the Scottish scheme are still being finalised, including whether it should be means tested and whether there should be a length of residency qualification.

Among its supporters is Irvine Welsh, the millionaire Scottish author of Trainspotting, who moved to Dublin to take advantage of Irish tax breaks. Welsh has told Alex Salmond, the first minister, that applying the perk to Scotland would help to increase cultural output. Other supporters include the painter Peter Howson.

Ian Rankin, author of the Rebus detective novels, said the reality was that most writers earned less than the minimum wage. “My first novel earned me £200 in 1986 and you couldn’t live on that for a year,” he said. “I can see people complaining, but I think Scotland has to look to culture and the arts as a viable part of the economy.”

Sir John Mortimer, author of the Rumpole books, said it was wrong to require UK taxpayers to fund incentives available only in Scotland.

“Ireland has produced wonderful writers but it did not produce any extra writers simply because it offered tax breaks. I do not think it does any particular good,” he added.

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