16

The recent Scottish Budget focused on measures to improve the health and well-being of the people of Scotland and boosting public services. While the Westminster Budget has increased the settlement for Scotland, the government faced a shortfall of around £1 billion for the coming year.

Some of the key highlights announced included:

• The tax thresholds for basic and intermediate tax rates will increase by 7.4% in 2026/27. Other thresholds remain frozen.
• Land and Buildings Transaction Taxes remain unchanged.
• Two higher council tax bands will be introduced from April 2028 on properties worth more than £1 million after some ‘targeted revaluation’.
• A tax on travel by private jet will come in from April 2027.
• Public sector efficiency reforms will be introduced to save £1.5 billion.
• Scottish Child Payment will increase in line with inflation, with an increase to £40 for children under a year old from 2027/28.
• Breakfast clubs will be offered in all primary and special schools by August 2027.
• The small business bonus scheme is extended for the next three years, and a 15% rate relief will apply to retail, hospitality and leisure businesses at the basic or intermediary property level (capped at £110,000 a business each year).
• Social care workers will receive a minimum of the real living wage of £13.45.

We have summarised these and the other main announcements and measures that may affect you in this document. Please get in touch if you would like to discuss any aspect of the Budget and its implications.