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The Scottish Parliament
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Scottish Budget 2021/22 helps the lower paid

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The Scottish government has set a Budget for 2021/22 that provides a marginal benefit to the lower paid, and taxes higher earning residents slightly more than if they lived in the rest of the UK.  

29th Jan 2021
Tax Writer Taxwriter Ltd
Columnist
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At a time when the relationship between the UK and Scottish governments is at an all-time low, it was churlish for the Prime Minister to overshadow what should have been a big day for the Scottish Parliament: the presentation of the 2021/22 Budget on 28 January 2021.

On the same day the Prime Minister decided to visit Scotland and push his message that the United Kingdom was better together, with an eye on the Scottish Parliamentary elections to be held on 6 May 2021. 

Timing

For devolution to work smoothly the Scottish Budget needs to follow after the UK Budget. This timetable allows Holyrood to know how much funding it will receive from UK-wide taxes such as VAT, NIC and corporation tax, before it set the levels of income tax, landfill tax and LBTT, which need to be in place before April 2021.

However, in the back to front world we live in Scotland’s full financial picture won’t be known until Chancellor Sunak presents his Budget on 3 March, so there may have to be further changes to the Scottish tax rates or thresholds before the new tax year starts. 

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