Scottish Government Budget Summary

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This budget continues the Scottish Government’s urgent measures to control the virus and protect our economy and people in the immediate term, while also ensuring a strong recovery and a fairer, stronger and greener future.

At its core this budget focuses on three key guiding principles, national mission for new, good, and green jobs; promotion of lifelong health and wellbeing and, driving equality and helping our young people to grasp their potential.

  • It outlines substantial additional investment in our NHS, in education, local government and other vital frontline services with total investment increasing by £3.8 billion.
  • It provides direct support for economy with NDR relief package worth almost £1 billion and investment in jobs and skills of £1.1 billion.
  • It provides stability and certainty to tax payers with no changes to income tax rates, and £90 million to support local authorities to freeze the council tax.
  • It will help create a fairer Scotland through £3.5 billion for social security and welfare payments, including £68 million for the ‘game changing’ Scottish Child Payment.
  • It invests an addition £2 billion in decarbonising the way we live, travel and heat our buildings and in supporting new, Scottish green industries, and supporting woodland creation – creating thousands of low carbon jobs and helping to end Scotland’s contribution to climate change by 2045.

Health

  • Support the safe and sustainable recovery of the NHS, with record funding in excess of £16 billion – an increase of over £800 million in core Health and Sport funding to allow investment of £11.9 billion in Health Boards, £1.9 billion for primary care, and spend in excess of £1.1 billion for mental health services.
  • Direct £145.3 million funding to alcohol and drugs support, with an increase of £50 million specifically targeted at reducing drugs deaths – part of a five-year, £250 million commitment.
  • Invest £883 million in social care, including £34 million for delivery of the living wage.

Business, Education and Skills

  • Support the economy and protect jobs through NDR measures worth almost £1 billion, extending current relief for the most affected sectors and reducing the poundage for all businesses.
  • Provide £1.1 billion to drive forward the Scottish Government’s national mission for jobs, and equip our future workforce with the skills they need, including an additional £125 million of investment targeted at employment support, including the National Transition Training Fund and Young Person’s Guarantee, alongside £230.9 million for Skills Development Scotland.
  • Invest £2.7 billion in education and skills – alongside significant funding delivered through the local government settlement – including £125 million to help close the attainment gap, and £1.9 billion for our world-class universities and colleges.
  • Support all sectors of our economy to recover and grow sustainably with £17 million additional funding for our enterprise agencies, the launch of the £100 million Green Jobs Fund, and £51.9 million of dedicated help for our tourism sector including doubling the Rural Tourism Infrastructure Fund.

Investment and low carbon

  • Deliver just over £6 billion of capital investment in 2021-22 through the National Infrastructure Mission – including £667.6 million grant funding to continue the Scottish Government’s ambitious programme of affordable house building, £142 million to support housing support schemes including shared equity and almost £100 million for superfast digital connectivity.
  • Invest £2 billion additional funding to decarbonise the way we live, travel, and heat our buildings, and to support woodland creation – supporting new, green Scottish industries, creating thousands of low carbon jobs, and helping to end Scotland’s contribution to climate change by 2045.

Supporting communities

  • Secure £3.5 billion for social security and welfare payments, including £68 million for the ‘game changing’ Scottish Child Payment, which once fully rolled out will help lift an estimated 30,000 children out of poverty.
  • Help to protect local services by guaranteeing £11.6 billion for local government, including £90 million to deliver a national council tax freeze and £567 million to deliver the Scottish Government’s commitment to 1,140 hours funded early learning and childcare by August 2021.
  • Keep our communities safe with £1.3 billion for the Scottish Police Authority, including an uplift of £60 million in the resource budget – continuing to deliver real terms protection and surpassing the Scottish Government’s commitment to deliver a £100 million boost by 2021.
  • Deliver a clean, efficient, and connected transport network, with investment of £3.2 billion, maintaining the Scottish Government’s record high commitment of £100.5 million for active travel, and £15 million to deliver a concessionary travel scheme for under-19s.

Tax policy

  • The Scottish Government’s tax policies will support Scotland’s recovery and renewal, recognising the impact the pandemic is having on people and businesses, and underlining its commitment to tackling the inequalities further exposed by COVID-19.
  • This is not the time for sweeping tax cuts across the board, nor is the time for significant tax rises. It is about striking the right balance between raising revenue for public services and COVID-19 support, and targeting interventions where they are most needed.
  • The Scottish Government is delivering certainty and stability for taxpayers, and offering as much support as we can to those that need it the most.
  • That includes ensuring that every Scottish Income Tax payer will pay slightly less Income Tax than they did in 2020-21, based on their current income.
  • The Scottish Government is also allocating an additional £90 million of funding to support councils to freeze Council tax in order to protect household incomes.
  • For businesses, the Scottish Government’s targeted NDR measures include extending 100% rates relief for the Retail, Hospitality, Leisure and Aviation sectors for at least three months in 2021-22, in addition to reducing the poundage mid-revaluation to 2019-20 levels – offering the lowest poundage available anywhere in the UK.