Following Scottish Budget announcements, Susan Love, Strategic Engagement Lead for Scotland, ACCA, said: ‘With 2026 being an election year for Scotland, this Budget was always going to be an important inflection point for Scotland’s economic policy.

‘The announcement today addressed issues critical to business success such as business taxes, transport, skills and business support. We welcome measures to address business concerns about rises in non-domestic rates and the college funding crisis. But, overall, businesses may feel a little underwhelmed by today’s announcements. 

‘While the Scottish Government stayed true to its commitment to avoid further increases in Income Tax and no new tax bands for the remainder of the Parliament, we’re disappointed in the continued fiscal drag, with the thresholds for the upper three bands remaining frozen for another year, drawing yet more taxpayers into these bands. With further announcements on changes to Council Tax, and a new air departure tax, our tax landscape remains overly-complex.’ 

'The rise in Employers’ National Insurance Contributions has undoubtedly increased employment costs for many firms, compounded by rises in the National Living Wage. It was crucial for the Cabinet Secretary to avoid further cost increases for Scottish firms and to consider where costs can be alleviated, for example by maintaining current rate reliefs for small businesses and considering where further support can be extended. 

‘Today’s announcement to continue the Small Business Bonus Scheme for another three years provides helpful certainty for small firms, while the modest relief for retail and hospitality firms is also welcome. However, for some businesses, the impact of reduced poundage rates, while welcome, may be offset by increases in rateable values arising from this year’s revaluation.

‘Given the pressures on employments costs, ACCA had called for more funding in training and apprenticeships. We’re pleased the Scottish Government acknowledged the importance of supporting young people into work, with additional funding for further education colleges particularly welcome. However, we are disappointed not to hear more about funding for businesses and apprenticeships. With businesses signalling muted hiring intentions, the Scottish Government needs to ensure it can move quickly to support firms to hire younger workers.’

The draft proposals come just four months before the Scottish parliament election.

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