What’s in the Scottish Budget?

Mackay

Derek Mackay MSP

Finance Secretary, Derek Mackay presented the Scottish Government’s Draft Budget to Holyrood on 14 December 2017.

Here are some of the headline announcements and those with specific reference to the private rented sector.

You can download and read the full Draft Budget here.

 Income Tax

  • From April 2018 Scottish earners will have to contend with five income tax bands and a new top rate of 46 per cent.

The full rates for 2018/19 will be:

Income Tax Rate Band
19 per cent £11,850 – 13,850
20 per cent £13,850 – 24,000
21 per cent £24,000 – 44,273
41 per cent £44,273 – 150,000
46 per cent >£150,000

 Housing

  • First time buyers purchasing a home worth up to £175,000 will pay no Land and buildings transaction tax.
  • £756m will be allocated as part of the wider £30bn investment in building affordable homes.
  • £137m to support energy efficiency and heat decarbonisation measures.
  • £50m over five years to ‘end homelessness’.

Economy & Business

  • £340m to establish a Scottish National Investment Bank.
  • £720m allocated for business rates relief incl. the small business bonus scheme.
  • Economic growth forecast at 0.7 per cent, increasing to 2.2 per cent in 2022.
  • Wage inflation forecast at 2 per cent.

Universal Credit

  • Applicants in Scotland will have more choice over how payments are made, including:
    • The ability to request managed payments to landlords; and
    • Twice monthly payments
  • The Scottish Welfare Fund has been extended on an interim basis to mitigate the potential impact of the withdrawal of automatic eligibility for 18-21 year-old applicants for support with housing costs.
This entry was posted in Blog, Politics, scotland, Tax, welfare. Bookmark the permalink.

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