The Draft Scottish Budget 2019 – 2020

budgetThe draft Scottish Budget was set out on Wednesday 12th of December by Derek Mackay, the Finance Secretary in the Scottish Government.

It should be emphasised that these are proposals and the other political parties in the Scottish Parliament are able to negotiate changes to it. The Liberal Democrats have already announced that they will not be taking part in any negotiations.

Here’s some of the main points. A full report will follow in later editions of The Orkney News.

Income Tax

Income Tax is only payable by Scottish taxpayers. The rates in rUK are different. HMRC can tell you if you are unsure if you are a Scottish or rUK taxpayer.

Dec 2018 income tax bands

These rates assume the person is receiving the Standard UK Personal Allowance for tax-free income of £12,500.  Personal Allowance is reduced by £1 for every £2 earned over £100,000.

55% of taxpayers will pay less income tax next year than if they lived elsewhere in the UK, and 99% will pay less income tax than they do this year on their current income.

90% of business properties in Scotland will be charged a lower rate than in the rest of the UK and 100,000 small businesses being lifted out of business rates all together.

The Small Business Bonus Scheme will be maintained as will  transitional support for businesses in hospitality, and for office premises in Aberdeen and Aberdeenshire as part of a £750 million package of rates reliefs

£180 million to go to raising attainment in schools, including £120 million for head teachers to spend on closing the attainment gap

+£600 million to colleges and more than £1 billion to universities

£1.1 billion to mental health

£9 billion for the delivery of primary and community health services

£11.1 billion settlement for local government

£500 million to expand funded early learning and childcare

£130 million towards the establishment of a Scottish National Investment Bank

£20 million for zero waste

£80 million for Active Travel

£3 billion to deliver 50,000 affordable homes

£50 million Ending Homelessness Together fund

£70 million in 2019/20 to drive forward sustainable and inclusive growth in the rural economy

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