Finance Secretary Kate Forbes delivered the 2022/23 Scottish Budget on 9 December 2021, setting out the
Scottish Government’s financial and tax plans.
The Budget outlined the government’s spending plans, income tax and Land and Buildings Transaction Tax.
Announced in the Budget was almost £2 billion of low-carbon capital investment in infrastructure.
This includes the first £20m of the 10-year Just Transition Fund to help the northeast and Moray transition
from carbon-based industries.
The Scottish Budget announced the phased return of non-domestic rate liabilities, which had been subject to
100% relief due to the pandemic. Non-domestic rates will be 49.8p in the pound, however, rate relief for
the retail, hospitality and leisure sectors will continue at 50% for the first three months of 2022/23, capped
at £27,500 per ratepayer.
Small businesses with a rateable value of less than £15,000 on Scottish high streets will continue to pay
no rates for all of next year, irrespective of which sector they are in, through the Small Business Bonus
Scheme. Additionally, new builds will pay no rates for the first 12 months after occupation through the
Business Growth Accelerator.
The Scottish Budget also announced that the Starter and Basic Rate bands of income tax (other than those
for savings and dividend income) which apply to Scottish resident taxpayers will increase by inflation. The
Higher and Top Rate thresholds will remain frozen.
Ms Forbes said:
‘The Scottish Budget will provide taxpayers with stability and support, set out clearly how we will
accelerate our Covid recovery, and crucially, how our spending plans will set Scotland on a new ambitious
Internet links: GOV.SCOT Budget statement GOV.UK news release