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Finance Secretary Shona Robison has eased pressures on lower and middle earners and unveiled more help on business rates for the hospitality, retail and leisure sectors.<\/p>\n
The income tax thresholds for the \u201cbasic\u201d (20%) and intermediate (21%) rates will increase by 7.4% and this means 55% of people on lower incomes will pay less tax than they would if they were earning the same wages in other parts of the UK, said Ms Robison.<\/p>\n
However, the higher tax rate (42%) will continue to start at \u00a343,663 and the advanced and top rates will remain unchanged.<\/p>\n
Her budget statement included the introduction of two new council tax bands by 2028 for the most expensive properties in Scotland. Higher rates will be paid on properties worth over \u00a31m based on an up-to-date valuation. She said this will bring greater fairness and increased revenue to councils.<\/p>\n
On business rates, she is providing relief worth \u00a3184 million over the next three years. There will be 15% business rates relief in 2026-27, worth \u00a3138m over three years for retail, hospitality and leisure premises.<\/p>\n
The small business bonus scheme, which removes rates from 100,000 small business, will be continued for a further three years.<\/p>\n
She says this means over 96% of retail, hospitality and leisure businesses \u201cwill pay zero or reduced rates.\u201d<\/p>\n
The government will provide funding to deliver, by August 2027, a breakfast club for every Scottish primary and special school pupil.<\/p>\n
In another measure targeted at the wealthy, the finance secretary announced plans for a departure tax for private jets.<\/p>\n
\u201cI say to those who choose to travel by private jet; In Scotland you will pay, and you will pay a fair share for that privilege\u201d she said, adding that the air departure tax will be introduced in 2027.<\/p>\n
There is no change to land and buildings transaction tax.<\/p>\n
The government is committed to completing the dualling of the A9 by 2035.<\/p>\n
Tory finance spokesman Craig Hoy dismissed what he described as a \u201cpre-election budget as cynical as it is predictable.\u201d<\/p>\n
He added: \u201cIt does nothing for those in the middle of the tax band. It prioritises welfare over work.\u201d<\/p>\n
\u2026 more follows<\/p>\n
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