Thu, 27 Nov 2025

Thu, 27 Nov 2025 No changes to Scottish income tax plan, Robison says

The finance secretary says rates will not rise and no new bands will be introduced in January's Budget.

* The Scottish government will not increase income tax rates or introduce new bands next year.
* However, thresholds for existing bands may be adjusted, which could result in higher earners paying more tax.
* Finance Secretary Shona Robison says this decision aims to provide "certainty" after Chancellor Rachel Reeves' UK Budget announcement.
* The Scottish government's tax strategy commits to increasing the starter and basic bands of income tax by at least inflation.
* This will likely lead to more people paying a higher rate as their wages increase, without changing the rates themselves.
* The Scottish Fiscal Commission (SFC) estimates that most Scots pay less income tax than they would elsewhere in the UK, but notes that difficulties in measuring figures make this calculation uncertain.
* Robison welcomes the Chancellor's announcement of an extension to the freeze on UK income tax and National Insurance thresholds until 2031, which she says will not affect Scotland's Budget for 2026-27.
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