Six ways the SNP Government Budget will impact Scots

The SNP Finance Secretary, Shona Robison, unveiled the SNP’s tax and spending plans for the upcoming year at Holyrood on Wednesday. Robison detailed various measures concerning health and welfare in the Budget, which she described as being “filled with hope for Scotland’s future.” This announcement follows an increase in funding for Holyrood from the UK Labour Government in October, setting the stage for significant changes in Scotland’s financial landscape.

One notable announcement by Robison was the scrapping of the two-child benefit cap in Scotland. Originally introduced by the Tories, this policy limits benefits for families with more than two children. By lifting this cap, 15,000 youngsters are expected to be lifted out of poverty, pending cooperation from the UK Government to access necessary data. Robison emphasised the Scottish Government’s commitment to start making payments as early as possible in 2026.

In terms of healthcare, Robison revealed a £2 billion increase in funding for the NHS in Scotland for the next year, bringing the total amount allocated for health and social care to £21 billion in 2025/26. This boost aims to address issues such as lengthy waiting times and overwhelmed A&E wards, ensuring improved access to GP appointments and timely care for more Scots.

Council tax freeze ends in Scotland, potentially leading to a hike in rates for Scots. Robison urged local authorities to approach this cautiously, having announced a record £1 billion increase in funding for them. With each council now able to set their own council tax rates, the focus is on avoiding substantial tax rises that could burden residents.

Income tax rates in Scotland will remain frozen until 2026, with no changes expected before the next Holyrood election. Additionally, the thresholds for the basic and intermediate rates will see a 3.5% increase in the next financial year. This adjustment is predicted to result in more workers paying the lower 19% rate, especially with increasing wages.

Housing initiatives were also addressed in the Budget, with an additional £800 million allocated for social security benefits in 2025/26. The Scottish Government plans to enhance affordable housing efforts with £768 million designated for the construction or acquisition of over 8,000 new homes in the coming year. This commitment comes after facing criticism for reducing affordable housing funds in the current budget, amid a declared housing emergency earlier this year.

Moreover, the Scottish Government will increase funding for free school meals and breakfast clubs, aiming to support disadvantaged children. Collaboration with local authorities will be key in expanding these initiatives, with a new scheme called Bright Start Breakfasts set to launch to establish more clubs for children. This move aligns with the government’s goal of easing the burden on working parents and providing children with a better start to their day.

In conclusion, the SNP Budget announcement demonstrates a mix of progressive policies and financial allocations to address key issues facing Scotland. From social welfare measures to healthcare and housing investments, the Budget reflects the government’s commitment to improving the lives of Scots and building a brighter future for the nation.