The Deputy First Minister and Finance Secretary, Shona Robison, published the Scottish Budget for the next financial year (2024/25) on 19th December 2023.
You can read the full statement delivered to the Scottish Parliament at: Budget Statement, or watch it online here.
A number of announcements are of relevance to our sector. In summary:
Business Rates - There will be a freeze on poundage for the basic property rate (businesses with a ratable value up to and including £51,000). The Small Business Bonus Scheme will be maintained (providing 100% relief to approximately 100,000 properties). However, consequentials from the UK Government’s 75% relief for Retail, Hospitality & Leisure will not be passed on to Scottish businesses by ministers this year.
Tax – A new 45% ‘Advanced Rate’ income tax will be introduced for people earning between £75,000 and £125,140. While the top rate of those earning over £125,140 will increase by 1p to 48p. Council tax rates will also be frozen in the upcoming year.
Crime and Justice - SG will invest £1.55bn in policing in 2024-2025, increasing the policing and resource budget by 5.6% (£75.7m).
In addition, the Scottish Government will provide £358m for energy efficiency upgrades and installation of clean heating systems and provide £49m for the transition towards a circular economy.
It is widely reported today that the Fraser of Allander Institute has calculated that the Scottish Government is now facing a funding shortfall of around £1.5bn.
