The SNP Government Budget was unveiled by Finance Secretary Shona Robison in Holyrood, outlining key measures impacting Scots. The Budget, described as offering hope for Scotland’s future, comes after an increase in funding from the UK Labour Government. Here are six ways the SNP Scottish Budget will affect Scots.
Firstly, in a surprising move, the SNP Government plans to scrap the two-child benefit cap in Scotland, aimed at lifting 15,000 children out of poverty. This policy, initially introduced by the Tories, limited benefits for families with more than two children. Despite requiring cooperation from the UK Government for implementation, the Scottish Government aims to start making payments as early as 2026.
Secondly, the NHS in Scotland is set to receive a £2 billion funding boost next year, with total health and social care funding for 2025/26 reaching £21 billion. This increased investment aims to address issues such as long waiting times and overwhelmed A&E wards, ensuring improved access to healthcare for Scots.
Additionally, Scots could potentially face a council tax hike as the freeze is lifted, although local authorities are urged to refrain from substantial rate increases. The Budget includes a record £1 billion funding increase for local councils, offering flexibility in setting council tax rates.
Income tax rates in Scotland will remain frozen until 2026, with no changes expected before the next Holyrood election. The basic and intermediate tax rate thresholds will increase by 3.5%, impacting more workers paying the lower 19% rate. Workers in Scotland earning over £29,000 already contribute more in income tax compared to other parts of the UK.
Moreover, the Scottish Government plans to allocate additional funding for housing, with an extra £800 million earmarked for social security benefits in 2025/26. This includes £768 million for affordable housing, aiming to build or acquire over 8,000 new homes in the upcoming year.
Lastly, the SNP Government will increase funding for free school meals and breakfast clubs, supporting children from disadvantaged backgrounds. Collaboration with local authorities will ensure broader access to free school meals, with a new initiative, Bright Start Breakfasts, set to establish more breakfast clubs.
In summary, the SNP Government Budget presents significant changes across various sectors impacting the lives of Scots, from social welfare improvements to healthcare investments and housing initiatives. These measures aim to address pressing challenges and provide a brighter future for Scotland.