No changes to Scottish income tax plan, Shona Robison says

Angus CochraneBBC Scotland Getty ImagesScottish Finance Secretary Shona Robison mentioned she needed to supply “certainty” after Chancellor Rachel Reeves introduced the UK BudgetThe Scottish authorities won’t improve earnings tax charges or introduce new bands in subsequent 12 months’s Funds, Finance Secretary Shona Robison has mentioned.Nevertheless, selections on thresholds for bands may imply that larger earners in the end pay extra tax. Robison mentioned she needed to supply “certainty” after Chancellor Rachel Reeves introduced the UK Funds. Reeves defended her plans – which is able to result in Scots paying extra earnings tax and Nationwide Insurance coverage – as “truthful”.Holyrood ministers have used their devolved powers to arrange a definite earnings tax system, with seven bands in contrast with the UK’s 4.Robison mentioned the Scottish authorities would stick with its tax technique, which set out plans to not change earnings tax charges or introduce new bands earlier than the Holyrood election in Could.Nevertheless, the finance secretary didn’t touch upon pay thresholds.”I’ve already set out within the tax technique the place we needed round stability with no adjustments to charges and bands,” she informed informed BBC Radio Scotland Breakfast.”That’s the place we had and that the place we keep.”The tax technique additionally units out a dedication that almost all of Scottish taxpayers ought to pay much less earnings tax than folks in the remainder of the UK. To fulfil that, the Scottish authorities can be anticipated to make adjustments to the starter and fundamental bands of earnings tax subsequent 12 months. The tax technique states that these bands ought to improve “by no less than inflation”. It additionally says the edge for larger, superior and prime bands will stay unchanged, that means extra folks can pay a better charge as their wages improve. Robison mentioned: “Properly in Scotland, after all, a majority of taxpayers do pay lower than in the remainder of UK, and that is a place we need to keep.”However we’ve requested those that earn extra to pay a bit extra, as a result of we imagine in that collective place that for those who imagine in society, then folks should make a contribution.”And we imagine these with the broader shoulders ought to make a bit extra of contribution.”PA MediaChancellor Rachel Reeves defended her Funds announcement The Scottish Fiscal Fee (SFC) cautions that difficulties in measuring earnings and tax figures imply it can’t present a “definitive” reply about whether or not extra Scots pay earnings tax than they’d elsewhere within the UK. When contemplating gross figures, it mentioned the vast majority of Scottish taxpayers have been paying extra earnings tax than they’d have if they’d lived elsewhere within the UK in every of the previous two monetary years. Nevertheless it additionally offered web figures which indicated the other. For 2025-26, the SFC estimated {that a} majority of Scots would pay much less earnings tax than they’d elsewhere within the UK underneath each gross and web figures. ‘Chaotic’ UK Funds Robison had beforehand warned that she might should revisit her tax plans if Reeves hiked charges south of the border.The chancellor had hinted at that risk earlier than U-turning. Though such a hike wouldn’t immediately have an effect on Scotland, it will result in an computerized reduce within the Scottish Funds underneath devolved funding preparations – resulting in warnings of a possible earnings tax rise north of the border. As an alternative, the chancellor introduced an extension to a freeze on UK earnings tax and Nationwide Insurance coverage thresholds till 2031. Robison mentioned that will not have an effect on the Scottish Funds for 2026-27, which is because of be introduced on 13 January. The finance secretary described the UK Funds course of as “chaotic” following weeks of hypothesis and a sequence of leaks.She added: “However now we’re again to a bit extra certainty then, after all, we need to return to place of our tax technique.” PA MediaThe chancellor has been criticised over her authorities’s North Sea technique Reeves acknowledged that her tax and spending plans – together with adjustments to money Isas and levies on pensions – would “impression on working folks”.Nevertheless, she informed BBC Radio Scotland Breakfast that the adjustments have been “truthful”. The chancellor has additionally been criticised by vitality companies, who had known as for a 78% levy on North Sea oil and gasoline earnings to be lifted. Reeves mentioned the UK Funds would ship an additional £820m to the Scottish authorities within the coming years. She added: “However cash at all times has to return from someplace, and it’s proper that we ask the vitality corporations to make a good contribution to fund public companies in Scotland.”Swinney ‘can’t be trusted’ on taxAt First Minister’s Questions at Holyrood, Scottish Conservative chief Russell Findlay mentioned the SNP had damaged its 2021 manifesto pledge to not improve earnings tax, including that John Swinney “can’t be trusted” to not hike charges. He known as for the funding the Scottish authorities had put aside to mitigate the two-child advantages cap – which the UK authorities has now introduced it can scrap – for use to chop earnings tax, arguing that employees deserved to maintain extra of their “hard-earned cash”.The abolition of the cap is predicted to avoid wasting the Scottish authorities about £120m in 2026-27. Swinney informed Findlay that ministers needed to be conscious of the financial context when making selections on tax, citing the struggle in Ukraine and the “utter stupidity” of the Liz Truss mini-budget.Scottish Labour chief Anas Sarwar informed MSPs that the UK Funds would ship “the best discount in baby poverty from a single price range this century”, whereas additionally pointing to an increase within the minimal wage. Swinney welcomed the abolition of the two-child cap, however mentioned the Labour authorities needed to be “shamed into motion”.