In a move aimed at shoring up support ahead of the upcoming Holyrood elections, the Scottish National Party (SNP) government has announced modest tax cuts for the lowest earners in Scotland. Finance Secretary Shona Robison revealed that from April, 55% of taxpayers in Scotland will take home up to £40 more per year than their counterparts elsewhere in the UK.
The tax threshold changes, costing the devolved government £50 million in the next financial year, are part of a broader budget package that also includes increases to child payments, higher taxes on private jets, and a boost in college funding. However, the overall budget has faced criticism from opposition parties and think tanks, who have accused the government of “tinkering” with an overly complex tax system rather than addressing the country’s pressing challenges.
Labour’s finance spokesperson Michael Marra said the SNP’s “abject failure to grow Scotland’s economy” has left ordinary Scots “paying the price”. The Institute for Public Policy Research (IPPR) Scotland described the budget as “tepid”, failing to properly tackle issues like child poverty and the climate emergency.
Despite the tax cuts for lower earners, those earning over £35,000 will continue to pay more than their counterparts in the rest of the UK. The thresholds for higher tax rates will also be frozen for the next three years, eventually taking the number of Scots paying the country’s three highest tax rates to over a million by 2030.
The Scottish Fiscal Commission, an independent watchdog, has warned that the government’s reliance on promised public sector workforce cuts and “ambitious” efficiency savings could have implications for future public services, depending on how these plans are delivered.
Robison has defended the budget, stating that it demonstrates the Scottish government’s commitment to the wellbeing of its citizens. “My message to the people of this country is clear – thanks to our cost-of-living commitments, you will be better off in so many ways because you live in Scotland,” she said.
However, the tax cuts and broader budget measures have done little to quell the criticism from opposition parties and think tanks, who argue that the SNP government is prioritising short-term, politically driven changes over the development of a comprehensive, long-term strategy to address Scotland’s pressing challenges.
