"Ministers in Scotland have cut taxes for the lowest earners by a modest 11 a year, as the government dug into its reserves, cut spending and increased borrowing to fund new election pledges. With four months to go before the Holyrood elections, the Scottish National party government raised the thresholds at which people earning less than 33,500 a year will pay income tax in Scotland by 7.4%."
"Shona Robison, the finance secretary, said this meant from April 55% of taxpayers in Scotland would take home up to 40 a year more than if they lived elsewhere in the UK. The tax cuts, which will cost the devolved government 50m in the next financial year, are designed to shore up the SNP's efforts to retain power and damage Labour's chances in the May elections."
"Robison announced that Scotland's child payment for the poorest families would rise to 40 a week for children under one from 2027; private jets would face higher air passenger duty rates from 2028; houses worth over 1m would face new higher council tax rates from 2028; and college funding would increase, after years of cuts, by 10%."
The Scottish government raised income-tax thresholds by 7.4% for people earning under 33,500, delivering modest tax cuts for lower earners and allowing 55% of taxpayers to take home slightly more. The measures are funded by dipping into reserves, reducing other spending and increasing borrowing to pay for election-focused commitments. The budget includes a rise in the child payment to 40 a week for under-ones from 2027, higher air passenger duty for private jets from 2028, new council tax rates for homes over 1m from 2028, and a 10% boost to college funding. Opposition parties and think-tanks criticised the package as tinkering with a complex tax system, while Labour proposed different tax changes for middle earners.
Read at www.theguardian.com
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