The Scottish government announced plans to change income tax thresholds as part of its Budget for 2026-27, presented by Finance Secretary Shona Robison in the Scottish Parliament. The proposals aim to alter the amount of income tax paid by Scottish taxpayers compared to those in the rest of the UK.
Robison stated that these changes would result in 55% of Scottish taxpayers paying less income tax than their counterparts elsewhere in the UK in the upcoming financial year. The Budget, totaling £68 billion, also includes plans for a tax increase on homes valued at over £1 million and an increase in the Scottish Child Payment.
The Finance Secretary argued 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.
The announcement comes four months before the Holyrood elections. The Budget sets out the government's financial plans for the next financial year and beyond.
While opposition MSPs welcomed some of the measures, they cautioned that the Budget would not deliver the comprehensive reforms needed. The specific details of the income tax threshold changes and the "mansion tax" are expected to be released in full budget documents. The Scottish Parliament will now debate the proposed budget before a final vote.
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