Scottish spending plans revealed for 2022/23

Scotland’s Finance Secretary Kate Forbes unveiled tax and spending plans to the Scottish Parliament in December

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While many of the big spending commitments – like the extension to the Scottish child payment and green investment – had been trailed in advance, the biggest talking point was the proposed phasing down of Covid-related rates relief to certain sectors.

Notably, the retail, hospitality and leisure sector, which receives 100% relief in the current financial year, will receive 50% relief only for the first three months of 2022/23, with relief capped at £27,500 per ratepayer. The Small Business Bonus Scheme will continue to exempt the smallest businesses from the rates system.

On income tax, while no changes were announced to the rates, the starter and basic bands will rise in line with inflation, with higher and top rate bands frozen. No changes are proposed to domestic or non-domestic rates of Land and Buildings Transaction Tax.

The Budget now moves to a phase of parliamentary scrutiny with a final vote expected in late January or early February.

Read more information on the announcement.

Additional resources

ACCA rates tables have been updated for the Scottish income tax rates and are available from the ACCA Autumn Budget Hub