Number of taxpayers subject to Scottish higher rate of tax set to top 550,000 in the next parliament

Our estimates show that if Scottish policy follows the rUK policy of freezing income tax thresholds the number of taxpayers subject to the Scottish higher rate and additional rate of tax will top 550,000 in the next parliament. If the Scottish Government chooses to increase thresholds in line with inflation, the median Scottish income taxpayer would pay around £195 less in tax in 2025/26. But the Scottish budget would be worse off in 2025/26 by over £700m.

Scottish Parliament building

Election Podcast #1

In our first election podcast, Mairi Spowage, Emma Congreve, David Eiser and Stuart McIntyre reflect on the big themes likely to feature in this election and answer some of the questions asked by our webinar audience earlier this week that we didn’t have time to answer.

Rishi Sunak UK budget

UK Budget 2021 and implications for Scotland

This was a budget of two parts – more spending in the short term to support mitigate the impacts of covid restrictions, and future fiscal tightening to address concerns about fiscal sustainability. But what were the implications for Scotland?

Scottish Parliament Chamber

Budget 2021/22: initial reaction

The focus of this budget was predictably on supporting health and the economic recovery, when it comes. But it had a pre-election feel too, with several tax cuts. Read our initial reaction

Scotland’s Budget Report: 2020

Recent positive news on vaccine development raises expectations that 2021/22 will herald the beginnings of a recovery from both the health and economic shocks caused by Covid in 2020. With this backdrop, what are the implications for the Scottish Government’s budget for 2021/22 – due to be published on 28th January?