Scotland Introduces New 45% Tax Band, Raises Top Rate to 48%

Finance Secretary Shona Robison's measures aim to address a £1.5 billion financial deficit, but risk driving middle earners across the border and discouraging talent retention.

Scotland's finance secretary, Shona Robison, has announced a new 45% tax rate for those earning between £75,000 and £125,140, and increased the top tax rate to 48% for all income over £125,140.
The new tax band is expected to generate around £40 million to £60 million, a small fraction of the £1.5 billion financial deficit the SNP's spending plans face for 2024/25.
Scotland's tax rates are now significantly higher than the rest of the UK, with those earning £100,000 or more in Scotland paying £3,346 more than their counterparts elsewhere in the country.
Analysts warn that the higher tax rates could drive middle earners across the border, and discourage talent retention in Scotland.
The Scottish government also announced a council tax freeze, increased funding for NHS boards, and investment in public transport and affordable housing.