Scottish budget 2021: five key points and what they mean to you

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Kate Forbes has presented a Scottish budget that she claims will help tackle the climate emergency, support economic recovery and reduce inequality.

The SNP’s chancellor has blamed the impact of Brexit on the size of the budget being rolled out – and claimed Scotland was paying an unfavorable price for its exit from the EU.

Kate Forbes said: “While all other parts of the UK have experienced a negative impact from Brexit, the magnitude of this is three times higher in Scotland than in London.

“We said that Brexit would be bad for Scotland, that it would have a different impact on our economy and, obviously, it would have a direct impact on our budget.

Economy Minister Kate Forbes presented her budget to the Scottish Parliament (Photo: PA) Read more related articles Read more related articles

“Don’t be confused, the budget I’m showing today is smaller than it would be if it wasn’t for the impact of Brexit on our economy, which is Brexit that was forced on Scotland against the express will of the people who live here.”

Today’s budget is the first announcement of spending before Christmas by the Scottish government since 2018 and the first by the SNP/Greens alliance.

He has covered a range of issues from income tax to free bus travel and council tax.

Here’s everything you need to know about budgeting:

Income tax has been frozen

Forbes said the current rates, which are slightly higher for better-off Scots than those south of the border, will remain the same next year.

Scottish taxpayers pay 19 per cent on earnings between £12,571 to £14,667, 20 per cent between £14,668 to £25,296, and an average rate of 21% on the portion that ranges Between £25,297 to £43,662

A higher rate of 41 per cent applies to income between £43,663 to £150,000, while the figure is 46 per cent to earnings over £150,000.

Double the child’s wages

Kate Forbes has confirmed that child payments in Scotland will double to £20 a week from April next year. It will save an additional £40 a month for families across the country.

Prime Minister Nicola Sturgeon announced the measure at the end of last month before today’s budget.

Sturgeon confirmed that more than 105,000 children will immediately benefit from the increased payments, which supports low-income families with children under the age of six.

Free bus travel

From January, Scots under the age of 22 are entitled to free travel by bus across the country.

The policy was announced several months ago by Nicola Sturgeon, but Forbes said £110m would be invested to make the scheme come true.

It is an attempt to encourage young people to use more public transportation.

lowest wages

Kate Forbes said the Scottish government will introduce a “minimum wage” for public sector employees of £10.50 an hour.

The Chancellor of the Exchequer told Financial Services Experts on Thursday: “Our wage policy for the next year, focus on those on low incomes, continue our progressive approach and ensure an inflationary increase of at least £775 for those earning up to £25,000, £700 to Those who earn between £25,000 and £40,000, and £500 for those who earn over £40,000.

In October the government announced a salary increase for social care workers to £10.02 an hour.

“Today I can announce a minimum wage of £10.50 an hour across all bodies covered by the wage policy, with specific funding to apply this to adult social care employees.”

Keep up to date with all the latest stories from Peter Davidson.

As the Daily Record’s live policy editor, he covers politics in Holyrood, Westminster and local councils.

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Council tax freeze

Scottish councils were given the green light to raise taxes after Kate Forbes announced the freeze was set to be lifted.

The text of the budget document: “We will provide full flexibility to local authorities in setting council tax rates – enhancing their financial independence.”

Scotland’s 32 councils have faced years of harsh spending cuts, making it likely that taxes will rise in an effort to protect local services.

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