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.

The evolution of the Scottish Budget 2020/21 – and a look forward to the Spending Review

The Scottish Budget has been allocated over £8bn to address the implications of Covid-19 in 2020/21. This article considers how those funds have been allocated, reviews the fiscal issues and tensions that have emerged , and considers the possible implications of the UK Government Spending Review 2020 for the Scottish BUdget in 2021/22

Should a UK wealth tax be devolved?

The Covid-19 crisis has renewed interest in the merits of establishing a tax on net wealth in the UK. But if a wealth tax were introduced in the UK, should it operate as a UK tax determined by the Westminster government, or would there be a case for operating the tax – or aspects of it – at a devolved level?

How progressive is the overall tax burden in Scotland?

The ONS recently published new data for Scotland on tax paid as a percentage of income by household income quantile. Unsurprisingly, some taxes are progressive (high income households pay a larger percentage of income in tax than lower income households) and others are regressive. But is the overall burden progressive or regressive?

Construction of infrastructure

Fiscal stimulus? Plus a note about ‘borrowing powers’…

We set aside some time yesterday to look over the Prime Minister’s economy announcements, following the trail that it would set out a plan for recovery. At the heart of the announcement was a £5bn “new deal” to build homes and infrastructure. But has been widely pointed out, there was …

Fiscal stimulus? Plus a note about ‘borrowing powers’… Read More »