- The thresholds for the 42p higher rate of income tax, the 45p advanced rate and the 48p top rate will all be frozen, which will draw tens of thousands more workers into paying them.
- Thresholds for paying the basic 20p rate and 21p intermediate rate will rise by 3.5 per cent, providing a maximum benefit of £14.51 a year.
- No further increases in income tax rates will be introduced before the end of this parliament in 2026, and no new bands will be created.
- The ‘additional dwelling supplement’, or second homes tax, will rise from 6 per cent to 8 per cent while Land and buildings transaction tax rates will be frozen and a review will be launched next spring.
- The council tax freeze will be lifted, and no cap will be applied on increases by the Scottish Government while funding for local authorities will rise by more than £1 billion, to £15 billion.
- Health and social care funding will rise by £2 billion, to a record £21.7 billion, with the extra money partly used to tackle soaring waiting times.
- Spending on social security will rise by nearly £800 million. It is forecast to rise further from £6.9 billion in 2025/26 to £8.8 billion in 2029/30. Devolved benefits will rise in line with inflation next year.
- The two-child benefit cap will be scrapped in Scotland – although not until 2026 and ministers have not yet provided any detail. The move will require the cooperation of the UK Government.
- Public sector workers will be given a nine per cent pay rise over the next three years, under the pay policy set out by the Scottish Government.
- Pubs and restaurants will be provided with 40 per cent business rates relief but retail and leisure firms will not receive any business rates relief in Scotland next year, despite the two sectors being supported with 40 per cent relief south of the Border.
- Farmers said that a commitment to £660 million of support fell short of their demands.
- Housing funding will be restored to the levels of two years ago, following a backlash at a cut in last year’s budget. It will include £786 million for affordable housing.
- Culture funding will rise by a record £34 million.
- An ‘external affairs’ budget – which includes spending on international offices, will rise from £26.3 million this year to £27.6 million.
