Scottish Budget RECAP: Scottish Government confirms no limit to council tax rises in 2023/24
Scotland’s Deputy First Minister has announced an increase to income tax for the highest earners and scrapped funding for another independence referendum in next year’s budget.
John Swinney published the draft budget on Thursday, against what he said was the “most turbulent economic and financial context most people can remember”, saying an increase to the highest rates of income tax in Scotland would allow for an extra £1 billion in spending on health and social care.
He said standard and basic rates of tax would not change.
Here’s a recap of how the day unfolded.
Scottish Budget LIVE: Scottish Government confirms no limit to council tax rises in 2023/24
BREAKING
Tax thresholds have been frozen for all but the highest earners, with the top rate dropping to £125,140. Top rate and higher rate raised by 1p to 42p and 47p.
This will be specifically used to increase health spending beyond Barnett consequentials amount . The money will go to the NHS Swinney says, “an extra penny to spend on patient care.”
BREAKING
There will be no limit to council tax rises in Scotland in 2023/24 with the decision being left to local authorities
John Swinney confirms the £20m independence referendum fund will be used to help pay for the Fuel Insecurity Fund extension into next year.
Some key points
- First Minister John Swinney has confirmed those earning more than £43,662 being asked to pay more but that the standard and basic rates of tax would not change.
- The higher rate threshold will be maintained and the top rate will be lowered to £125,140 from £150,000. Both the higher and top rates of tax will be increased by 1p each, to 42p and 47p respectively.
- The £20m fund earmarked for an independence referendum will go into fuel insecurity fund instead.
- The finance secretary pledges to increase benefits under the control of the Scottish parliament by the rate of inflation in September - that is 10.1%
- There is no Public Sector Pay Policy document with this year’s budget statement.
- Councils will be given the freedom to set their own rates of council tax.
Some other key points - The Scottish Government will not mandate a council tax freeze, the Deputy First Minister has said.
John Swinney told MSPs that local government will get a funding boost of £550 million next year and the freedom to set its own rates of income tax.
Back to the leak that caused the Budget delay.
Scottish Labour’s Daniel Johnson says some of the leak wasn’t in the copy of the statement he was given by government ahead of budget and that they were redacted.
What was said about the independence fund?
During the Budget it was revealed that the £20 million set aside for a referendum on Scottish independence will instead be used to help people at risk of fuel poverty.
Mr Swinney said the Government respects the ruling of the Supreme Court, which said Holyrood cannot legislate for its own independence referendum.
He said: “When that opportunity is available, the Scottish Government will make financial provisions for that to happen.
“However, at this moment, I must make full use of the resources available to me.”
He continued: “I intend to utilise the finance earmarked for a referendum on independence to meet provision to extend our fuel insecurity fund into next year, a further £20 million to address yet another failure of the United Kingdom and its policies.”
