Finance Secretary Shona Robison announced plans in the Scottish Parliament to alter income tax thresholds as part of the Scottish Budget for 2026-27. The proposed changes, unveiled as part of the £68 billion budget, aim to ensure that 55% of Scottish taxpayers would pay less income tax compared to residents in the rest of the United Kingdom in the next financial year, according to Robison.
The budget also includes a tax increase on homes valued at over £1 million and an increase to the Scottish Child Payment. The proposals come four months before the Holyrood elections.
Robison stated that the tax and spending proposals would "ensure pressure on families and family budgets will ease." However, economists have noted that the budget also contains significant cuts.
Opposition MSPs offered mixed reactions, welcoming some measures while also expressing concerns that the Budget would not deliver comprehensive reforms. The full details of how Scottish income tax is changing are expected to be released shortly.
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