Scottish income tax changes unveiled

Summary

Finance Secretary Derek Mackay announces income tax changes that will see higher earners pay more than elsewhere in the UK - and lower earners pay less
Mr Mackay announces a new tax band of 21p for those earning more than £24,000
The higher rate of tax will be increased from 40p to 41p and the top rate from 45p to 46p
A starter rate of 19p in the pound will also be introduced, Mr Mackay confirmed in his draft budget

Live Reporting

Craig Hutchison, Andrew Southwick, Nasim Asl and Catherine Lyst

Postpublished at 14:40 Greenwich Mean Time 14 December 2017
This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
The BBC is not responsible for the content of external sites.
Skip twitter post
Allow Twitter content?
This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.
The BBC is not responsible for the content of external sites.
End of twitter post
Government has broken its promises - Murdo Fraserpublished at 14:39 Greenwich Mean Time 14 December 2017
Conservative MSP Murdo Fraser says: "One thing is absolutely clear, we can not trust a word the first minister or the Scottish government say."
He says they: "Promised to freeze basic rate of income tax.
"The government has broken its promise to the people.
"They are proposing to do the opposite.
"No-one will believe a word they say ever again."
He adds there is "No justification for tax rises."
SUMMARYpublished at 14:39 Greenwich Mean Time 14 December 2017
Publishing the Draft Budget to parliament, Mr Mackay set out a programme that he says will:
- Increase spending on the health service by over £400m - £200m more than inflation.
- Provide £120m - over and above core education funding - direct to head teachers to help ensure all young people can fulfil their potential
- Lift the 1% public sector pay cap and provide for up to a three per cent pay rise for NHS staff, police, teachers and others earning up £30,000
- Invest £243m towards the expansion of free nursery education and childcare
- Protect funding for Police and Fire services including retaining VAT refunds in full
- Deliver a local government finance settlement worth more than £10.5bn
- Contribute £756m towards investment of more than £3bn by 2021 to deliver 50,000 affordable homes
- Allocate over £4bn of funding for infrastructure
- Deliver £600m to ensure every home and business will have access to superfast broadband by 2021
- Deliver the first £70m of a new £150m Building Scotland Fund
- Set aside £340m for initial capitalisation of the Scottish National Investment Bank
- Invest nearly £2.4bn in our colleges, universities, enterprise and skills bodies – including a real terms increase for both college and Higher Education budgets
Postpublished at 14:37 Greenwich Mean Time 14 December 2017
This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
The BBC is not responsible for the content of external sites.
Skip twitter post
Allow Twitter content?
This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.
The BBC is not responsible for the content of external sites.
End of twitter post
Postpublished at 14:37 Greenwich Mean Time 14 December 2017
This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
The BBC is not responsible for the content of external sites.
Skip twitter post
Allow Twitter content?
This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.
The BBC is not responsible for the content of external sites.
End of twitter post
'It is a budget for all of Scotland and I commend it to this chamber'published at 14:37 Greenwich Mean Time 14 December 2017
Mr Mackay concludes saying: "It is a budget for fairness and a budget for growth.
"It is a budget for all of Scotland and I commend it to this chamber."
Mackay says budget will will help Scotland to grow its economypublished at 14:35 Greenwich Mean Time 14 December 2017
Mr Mackay says the new Building Scotland Fund together with:
- ·an additional £96m of investment in maintaining the most attractive system of business rates in the UK:
- ·a 70% increase in funding for business R&D;
- ·£60m of investment in developing low carbon technology
- ·over £4bn of investment in new infrastructure;
- ·doubling our investment in City Deals;
- ·a £600m package to deliver 100% superfast broadband to all; and
- almost £2.4bn of funding for Enterprise and Skills
....demonstrates that this budget backs Scotland's businesses and will help Scotland to grow its economy.
Postpublished at 14:35 Greenwich Mean Time 14 December 2017
This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
The BBC is not responsible for the content of external sites.
Skip twitter post
Allow Twitter content?
This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.
The BBC is not responsible for the content of external sites.
End of twitter post
Postpublished at 14:35 Greenwich Mean Time 14 December 2017
This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
The BBC is not responsible for the content of external sites.
Skip twitter post
Allow Twitter content?
This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.
The BBC is not responsible for the content of external sites.
End of twitter post
Postpublished at 14:34 Greenwich Mean Time 14 December 2017
This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
The BBC is not responsible for the content of external sites.
Skip twitter post
Allow Twitter content?
This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.
The BBC is not responsible for the content of external sites.
End of twitter post
Postpublished at 14:34 Greenwich Mean Time 14 December 2017
This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
The BBC is not responsible for the content of external sites.
Skip twitter post
Allow Twitter content?
This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.
The BBC is not responsible for the content of external sites.
End of twitter post
Here are the income tax announcementspublished at 14:34 Greenwich Mean Time 14 December 2017
Mr Mackay says the proposals have been modelled by the SFC.
The minister says he has set inome tax policy that will generate more revenue and announces:
- higher and top rate to increase by 1% to 41p and 46p
- freeze the basic rate at 20p
- introduce intermediate rate of 21p between £24,000 and £44,273
- introduce starter rate of 19p £2,000 of taxable income, £11,850 - £13,850
Mr Mackay says this means there will be maringally less tax payed per head than the rest of the UK.
He says overall there will be a rise of £366m more than corresponding block grant adjustiment under the fiscal framework.
Postpublished at 14:32 Greenwich Mean Time 14 December 2017
This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
The BBC is not responsible for the content of external sites.
Skip twitter post
Allow Twitter content?
This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.
The BBC is not responsible for the content of external sites.
End of twitter post
Postpublished at 14:31 Greenwich Mean Time 14 December 2017
This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
The BBC is not responsible for the content of external sites.
Skip twitter post
Allow Twitter content?
This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.
The BBC is not responsible for the content of external sites.
End of twitter post
Postpublished at 14:30 Greenwich Mean Time 14 December 2017
This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
The BBC is not responsible for the content of external sites.
Skip twitter post
Allow Twitter content?
This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.
The BBC is not responsible for the content of external sites.
End of twitter post
Postpublished at 14:30 Greenwich Mean Time 14 December 2017
This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
The BBC is not responsible for the content of external sites.
Skip twitter post
Allow Twitter content?
This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.
The BBC is not responsible for the content of external sites.
End of twitter post
Postpublished at 14:29 Greenwich Mean Time 14 December 2017
This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
The BBC is not responsible for the content of external sites.
Skip twitter post
Allow Twitter content?
This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.
The BBC is not responsible for the content of external sites.
End of twitter post
Postpublished at 14:29 Greenwich Mean Time 14 December 2017
This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
The BBC is not responsible for the content of external sites.
Skip twitter post
Allow Twitter content?
This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.
The BBC is not responsible for the content of external sites.
End of twitter post
Now to the thorny issue of tax......................published at 14:28 Greenwich Mean Time 14 December 2017
Mr Mackay says: "We do not take decisions on tax lightly."
He says in November the government set out four key tests that any change to income tax would have to meet:
1. Protect low earners;
2. Make tax fairer;
3. Generate additional revenues for public services; and
4. Protect our economy
Postpublished at 14:28 Greenwich Mean Time 14 December 2017
This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
The BBC is not responsible for the content of external sites.
Skip twitter post
Allow Twitter content?
This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.
The BBC is not responsible for the content of external sites.
End of twitter post