[ad_1]\n<\/p>\n
The Scottish government is reportedly considering introducing a new tax level in a bid to plug a gap in its budget.<\/p>\n
The new tax band will impact those earning more than \u00a375,000 a year<\/p>\n
The Fraser of Allander Institute (FAI) said the funding shortfall was around \u00a31.5billion, between day-to-day spending commitments and capital projects.<\/p>\n<\/div>\n<\/div>\n
But the group said adding a new 45 percent tax band for earnings over \u00a375,000 would only raise around \u00a360million for spending.<\/p>\n
The highest rate levied on people earning more than \u00a3125,140 a year, will rise by one percent in 2024 to 48 percent.<\/p>\n
The three lowest tax rates will not be raised, while the starter and basic bands will rise in line with inflation.<\/p>\n<\/div>\n<\/div>\n
Finance Secretary Shona Robison confirmed the move as she unveiled the government’s budget for next year.<\/p>\n<\/div>\n<\/div>\n
The changes mean Scotland will have six income tax bands while the rest of the UK has three.<\/p>\n
Higher earners in Scotland will subsequently be paying more than other parts of the country.<\/p>\n
Scotland now has six tax bands:<\/p>\n<\/div>\n<\/div>\n
The finance secretary also confirmed the current thresholds for the higher and top bands – \u00a343,663 and \u00a3125,140 respectively – would be frozen instead of rising with inflation.<\/p>\n<\/div>\n<\/div>\n
She said this would generate an extra \u00a3307million through more people finding themselves in higher tax bands after being given pay rises.<\/p>\n
Ms Robinson said: \u201cThat\u2019s why I will fund an above inflation five per cent council tax freeze \u2013 delivering over \u00a3140million of additional investment for local services.<\/p>\n<\/div>\n<\/div>\n
\u201cCombined with the other support being provided to local government, this will increase their overall funding by six percent since the last budget, taking local government funding to a new record high of over \u00a314billion.\u201d<\/p>\n
Prior to today\u2019s announcement, there was widespread speculation that the SNP-led Scottish Government would introduce a new tax band.<\/p>\n
The implementation of this rate comes as both Governments in Westminster and Holyrood attempt to address a huge squeeze in public finances.<\/p>\n<\/div>\n[ad_2]\n","protected":false},"excerpt":{"rendered":"
[ad_1] The Scottish government is reportedly considering introducing a new tax level in a bid to plug a gap in its budget. The new tax band will impact those earning more than \u00a375,000 a year The Fraser of Allander Institute (FAI) said the funding shortfall was around \u00a31.5billion, between day-to-day spending commitments and capital projects. …<\/p>\n","protected":false},"author":1,"featured_media":16230,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/16229"}],"collection":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/comments?post=16229"}],"version-history":[{"count":0,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/16229\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media\/16230"}],"wp:attachment":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media?parent=16229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/categories?post=16229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/tags?post=16229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}