Thousands of people face income tax hike in Scotland as SNP creates new tax band for those earning over £75,000

19 December 2023, 16:01

Shona Robison made the announcement during her Budget statement at Holyrood
Shona Robison made the announcement during her Budget statement at Holyrood. Picture: Alamy

By Asher McShane

A new tax band of 45p in the pound will be created in Scotland, the Deputy First Minister has announced.

Listen to this article

Loading audio...

Shona Robison said in her Budget statement at Holyrood on Tuesday that the "advanced" band will apply to those earning between £75,000 and £125,140.

The top rate of tax, levied against those earning above this figure, will rise by 1% next year to 48p in the pound.

In other areas of tax, the three lowest rates will see no increase to their rates while the starter and basic rate bands will increase by the level of inflation.

The changes will bring in another £1.5 billion to Scotland's finances next year, Ms Robison said.

Read more: 'I don't know' if Michelle Mone should be kicked out of the Lords, govt minister says after baroness takes aim at Sunak

Read more: Crowds descend on site of massive Icelandic volcano eruption in defiance of police pleas to stay away

She also said the Scottish Government will fully fund its proposed council tax freeze, providing local government with the equivalent of a 5% rise.

Ms Robison told MSPs the Office for Budget Responsibility projection for inflation next year is 3%, but she wants to "go further than that".

She said: "That's why I will fund an above inflation 5% council tax freeze - delivering over £140 million of additional investment for local services.

"Combined with the other support being provided to local government, this will increase their overall funding by 6% since the last budget, taking local government funding to a new record high of over £14 billion."

Councils will be provided with £1.5 million to wipe out school meal debt incurred by pupils across Scotland.

"Due to Westminster mismanagement of our economy, too many households are worrying about debt," Ms Robison said.

"With our limited powers there is only so much we can do. However, where we can step in, we will.

"That is why I am pleased to confirm we will provide local authorities with £1.5 million to cancel school meal debt, removing a worry hanging over families up and down the country who are struggling to make ends meet."

More Latest News

See more More Latest News

File photo dated 19-05-2024 of Manchester City's Kevin De Bruyne lifting the Premier League trophy with team-mates.

Kevin De Bruyne to leave Manchester City, as Pep Guardiola calls him 'one of greatest midfielders to play in England'

Stock markets plummeted on Friday

Starmer 'pushing for Trump royal visit this year' as UK bids for US trade deal - after tariffs spark turmoil in markets

Tom Howard

British tourist killed after being struck by boulder on trek through Himalayas

In this photo provided by the Ukrainian Emergency Service, a car burns following a Russian missile attack that killed more than a dozen people, including children, in Kryvyi Rih, Ukraine, Friday, April 4, 2025. (Ukrainian Emergency Service via AP)

Russia kills 16 people including three children in missile strike on Zelenskyy's home town, with dozens wounded

Travel influencer Mykhailo Viktorovych Polyakov, 24, made an illegal visit to North Sentinel Island

Tourist who left Coke for world's most isolated tribe 'could have wiped them all out' - and police 'can't go collect can'

Club house covered in red paint as members of group Palestine action caused damage to the Trump owned site of Trump Turnberry Golf Club in Scotland.

Police arrest man, 33, and woman, 55, after Donald Trump's Scottish golf course vandalised with red paint

Man, 23, who gouged out pensioner's eyes before beating him to death with his own walking stick locked up indefinitely

Man, 23, who gouged pensioner's eyes out before beating him to death with his own walking stick locked up indefinitely

The FTSE 100 plummeted on Friday

UK stock market plunges amid Trump tariff chaos as FTSE 100 suffers worst trading losses in five years

The scene at Beckenham Place Park

London park evacuated as police search for teenage boy who went missing while swimming in lake

Tommy Robinson pictured last year

Tommy Robinson in bid for freedom with appeal against contempt of court jail sentence after libelling teen refugee

Layla Allen died at the scene

'Cherished beyond words': Family pay tribute to 'shining light' 13-year-old killed in Merseyside house fire

Russell Brand

Russell Brand breaks silence after actor and comedian charged with rape and sexual assaults

White House weighs in to support ‘censored’ anti-abortion activists in Britain

White House looking to support ‘censored’ anti-abortion activists in Britain

Sean "Diddy" Combs.

Sean 'Diddy' Combs charged with two further counts of sex trafficking

XL Bully (FILE)

XL Bully on the loose after drive-by shooting in Sheffield as police issue urgent safety warning

Peter Serafinowicz and Sarah Alexander have split.

Amandaland star and comedian Peter Serafinowicz splits from actress wife after 23 years