Scottish Government Holyrood Budget – 4th December
The Finance Secretary, Shona Robison, has this week published the Scottish Budget for the next financial year (2025/26).
You can watch the full statement delivered to the Scottish Parliament this afternoon here.
A number of announcements are of relevance to our sector. In summary:
NON-DOMESTIC RATES
The basic property rate will be frozen at 49.8p on poundage for the (businesses with a rateable value up to and including £51,000). The Intermediate and Higher Property Rates will increase by inflation to 55.4p and 56.8p respectively.
The Small Business Bonus Scheme will be maintained. The Government passed 40% rates relief on Hospitality venues, however, this has not been passed on to the retail sector.
The Retail, Hospitality and Leisure relief previously available from 1 April 2020 to 30 June 2022 to mitigate financial hardship during the COVID-19 pandemic will close for applications on 31 March 2025.
There are no plans for a reintroduction of the Public Health supplement for large retailers.
TAXATION
No new bands or increases will be made in the rates of Scottish Income Tax. The Basic rate and Intermediate rate thresholds will increase by 3.5% to £15,397 and £27,491 respectively. The Higher, Advanced and Top rate thresholds will be maintained at £43,662, £75,000 and £125,140 respectively to the end of this Parliament.
Scottish Income Tax Policy Proposals 2025-26
| Band | Income Range | Rate |
|---|---|---|
| Starter rate | £12,571* - £15,397 | 19% |
| Basic rate | £15,398 - £27,491 | 20% |
| Intermediate rate | £27,492 - £43,662 | 21% |
| Higher rate | £43,663 - £75,000 | 42% |
| Advanced rate | £75,001 - £125,140 | 45% |
| Top rate** | Above £125,140 | 48% |
*Assumes individuals are in receipt of the Standard UK Personal Allowance.
**Those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000.
Legislation will be introduced to increase the standard and lower rates of Scottish Landfill Tax from 1 April 2025 so that they are consistent with the announced UK Landfill Tax rates for 2025-26.
CRIME AND POLICING
£4.2 billion will be allocated across the justice system in 2025-26, including £1.62 billion for policing to support capacity and capability, £881.1 million for prisons, and £159 million for community justice services. An additional £3 million will be allocated to tackle retail crime.
HIGHSTREETS AND TOWN CENTRES
· £62 million has been allocated for regeneration, including funding for projects aimed at revitalising town centres and improving local economies.