Home Business News Scotland is not ‘open for business’ as a new tax band will hit higher earners

Scotland is not ‘open for business’ as a new tax band will hit higher earners

by LLB Finance Reporter
19th Dec 23 4:27 pm

Scotland’s Deputy First Minister has announced on Tuesday afternoon that there will be a new tax band of 45p in the pound.

Shona Robison said in her Budget statement at Holyrood on Tuesday that the “advanced”  band of the top rate of tax, will apply only for those earning between £75,000 and £125,140 will rise by 1% next year to 48p in the pound.

Robison said that for 2024 this will bring in an extra £1.5 billion into Scotland’s finances, she also proposed a council tax freeze.

Robison told MSPs that according to the Office for Budget Responsibility projection for inflation is to be 3% in 2024, she added that she will “go further than that.”

Robison said, “That’s why I will fund an above inflation 5% council tax freeze – delivering over £140 million of additional investment for local services.

“Combined with the other support being provided to local government, this will increase their overall funding by 6% since the last budget, taking local government funding to a new record high of over £14 billion.”

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“Due to Westminster mismanagement of our economy, too many households are worrying about debt,” Robison added.

“With our limited powers there is only so much we can do. However, where we can step in, we will.

“That is why I am pleased to confirm we will provide local authorities with £1.5 million to cancel school meal debt, removing a worry hanging over families up and down the country who are struggling to make ends meet.”

Liz Smith, the Scottish Conservative finance spokeswoman, accused Robison of a “discourtesy” to Parliament.

Smith said, “I can’t see any acknowledgement anywhere – none whatsoever – that the Scottish Government takes any responsibility for the current fiscal circumstances.”

Hitting back at Robison, she asked, on tax, “Do you really think… that you are sending out the right message that Scotland is open for business?

“For economic growth, for investment, innovation and job creation? Because it’s abundantly clear that business and industry doesn’t think so.”

Scottish Labour finance spokesman Michael Marra said this was a “chaotic Budget from an incompetent Government that will leave ordinary Scots paying much more and getting much less in return.”

Marra added, that Humza Yousaf had “panic-spent public money following the Rutherglen by-election.

“Tax cannot and should not be used as a substitute for economic growth.”

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