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Scotland Sets Pre‑Election Budget With Modest Tax Relief, Record NHS Cash and Wealth Levies

With limited fiscal room, ministers mix targeted support and small threshold changes with delayed taxes on high‑value property and private jets as auditors warn of a multi‑billion‑pound shortfall.

Overview

  • Finance Secretary Shona Robison unveiled a £68bn draft Budget for 2026–27 that is expected to pass after Scottish Labour said it will abstain.
  • Basic and intermediate income tax thresholds rise by 7.4%, leaving most earners below about £33,500 slightly better off than in the rest of the UK while many middle and higher earners continue to pay more and the 50% marginal band issue remains.
  • Health and social care funding increases to £22.5bn, including support for walk‑in GP clinics, alongside a pledge to raise the Scottish Child Payment to £40 a week for under‑ones and expand breakfast clubs.
  • New wealth measures include extra council tax bands for £1m‑plus homes from April 2028 and a private‑jet levy planned after April 2027.
  • Business support features transitional relief and 15% non‑domestic rates relief for hospitality, tourism and leisure, as fiscal watchdogs highlight a near‑£5bn funding gap and analysts point to planned day‑to‑day spending cuts.