Income Tax rise for higher earners as new tax year begins

Additional half a billion pounds raised for public services

Changes to income tax in Scotland have come into force and are estimated to raise more than half a billion pounds of additional revenue this financial year to support vital public services.

The tax rates for earnings between £12,571 and £43,662 remain the same while earnings above £43,663 are now taxed at the Higher tax rate of 42%.

The threshold at which people pay the Top Rate of tax has reduced from £150,000 to £125,140 with earnings over that threshold now taxed at 47%.

According to the Scottish Fiscal Commission, these changes will raise £129 million in 2023-24.

The Higher Rate threshold will also remain at its 2022-23 level, applying to earnings over £43,662, which will increase revenue by a further £390 million when compared to uprating the threshold by inflation, according to Scottish Government estimates.

As the new financial year begins, Scottish taxpayers are also being encouraged to check if their tax code on their first payslip is correct – people paying Scottish Income Tax should have a tax code that starts with an S.

Deputy First Minister Shona Robison said: “The decisions we have made on income tax are fair and progressive by ensuring that those who can, contribute more. They strengthen our social contract with the people of Scotland who will continue to enjoy many benefits not available in the rest of the UK such as free prescriptions.

“The additional revenue will help us invest in our vital public services including the NHS, above and beyond the funding received from the UK Government.  At the same time, the majority of taxpayers in Scotland will still be paying less income tax than if they lived in the rest of the UK.

“Now that the new financial year has started, I’d also encourage people to check that the tax code is correct on the first payslip they get. If you think your tax code is wrong, you can check your details with HMRC who will be able to help.”

The new Scottish Income Tax bands and rates for the financial year 2023-24 are:

BandBand nameRate
£12,571* – £14,732Starter Rate19%
£14,733 – £25,688Basic Rate20%
£25,689 – £43,662Intermediate Rate21%
£43,663 – £125,140**Higher Rate42%
Over £125,140Top Rate47%

* Assumes individuals are in receipt of the standard Personal Allowance.

** Those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000.

The Personal Allowance threshold remains reserved and is set by the UK Government at the UK Budget.

Supporting families: First Minister announces additional £15 million to expand school age childcare

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Thousands more low-income families will benefit from free school age childcare as part of a £15 million investment to help tackle child poverty.

Existing services for eligible families in areas of Dundee, Clackmannanshire, Glasgow and Inverclyde will be expanded, with new services set up in other communities across Scotland.

Local football clubs will be able to apply for funding totalling £2 million to support the provision of after school and holiday activities clubs, in a joint initiative with the Scottish Football Association.

Nine other projects will also receive a share of the £15 million funding to continue offering childcare services in 2023-24.

First Minister Humza Yousaf made the funding announcement as he visited Ayr United Football Academy’s holiday club.

The First Minister said: “Tackling child poverty and helping families deal with cost of living pressures are key priorities.

“Funded school age childcare benefits families in a number of ways. It supports parents and carers into work, enabling them to provide for their families and to contribute to a wellbeing economy. It also provides safe, nurturing environments for children and opportunities for them to socialise and take part in a wide range of activities.

“This £15 million investment is part of our work to build a system of year-round school age childcare – fully funded for those who need it most.

“Scotland already has the most generous childcare offer anywhere in the UK. All three and four-year-olds and eligible two-year-olds are entitled to 1,140 hours a year of funded Early Learning and Childcare (ELC). We are working with partners to progress our childcare offer even further, with plans to expand ELC to one-year-olds and more two-year-olds.”

Ayr United Football Academy Chair Allan Gunning said: “This project supports children and families by providing a wide range of activities through after school and holiday clubs.

“It is delivering positive outcomes for children including: increased access to activities and sports, improved nutritional intake, enhanced fitness and engagement in wider education. The project is also delivering positive outcomes for families including; assisting with employment, education and training, increasing community involvement, and family participation in grassroots clubs and organisations.

“We are delighted that project funding is continuing and appreciate the Scottish Government’s ongoing commitment to improving outcomes.” 

Delivering for Scotland: New ministers ‘will take a bold approach’

The First Minister chaired the first meeting of his new Scottish Cabinet in Bute House yesterday, charging Cabinet Secretaries and Ministers to take a bold approach to delivering for Scotland.

Cabinet had a substantive discussion on the priorities of the government, ahead of the First Minister giving a planned statement to parliament immediately after recess. They had a further conversation around the budget that will underpin those priorities.

Friday’s discussion highlighted the importance of being an open, accessible government through engagement with the public and stakeholders and by reaching out to members of other parties in a genuine spirit of collaboration.

It also stressed the importance of building relationships with counterparts in other devolved administrations and the UK Government.

Cabinet members also reflected on their experiences in their previous ministerial portfolios and how that often brings useful perspective when taking on roles in different areas of government.

As always, a discussion on the immediate issues Cabinet members will be addressing in the coming weeks took place.

First Minister Humza Yousaf said: “I was pleased to welcome new and returning Cabinet members to our first meeting this morning. I was clear to them that I want Cabinet to be a forum for open and honest discussion.

“We all look forward to reaching out to stakeholders, the business community, opposition parties and the wider public in a spirit of genuine collaboration.

“This government has a strong track of taking forward ambitious and radical policies and reforms over the last few years, against a backdrop of austerity, economic uncertainty and of course the COVID-19 pandemic.

“Under my leadership the Ministerial team have been tasked with taking a bold approach to how we govern – not just in addressing the challenges facing the people of Scotland, but also maximising the opportunities of our many strengths.

“Our key priorities will include eradicating poverty and delivering a wellbeing economy underpinned by sustainable public services.

“I will set out more detail to parliament following Easter recess – but in the next couple of weeks, Cabinet members will be busy getting down to work on the immediate issues in their portfolios.”

A New Deal for local government?

Councils and Scottish Government ‘working hand-in-hand’

First Minister Humza Yousaf has reaffirmed the Scottish Government’s commitment to resetting the relationship with local authorities in a meeting with COSLA President Shona Morrison.

A New Deal for local government has been embodied in the appointment of a dedicated Minister for Local Government Empowerment and Planning, Joe FitzPatrick, who joined the meeting alongside Deputy First Minister Shona Robison.

The New Deal will be jointly agreed with COSLA and will provide greater flexibility over local funding and clear accountability for delivering shared priorities.

The First Minister said: “These early discussions in my first week as First Minister have been an important opportunity for me to reaffirm the Scottish Government’s commitment to working collaboratively with local government.

“Together, local and national governments work hand-in-hand to deliver on our shared priorities for the people of Scotland and the vital public services in our communities whilst recognising the considerable financial pressures across the public sector.

“Work is already underway on developing a New Deal for Local Government. We will work together, through regular and meaningful engagement, to progress this, explore a new fiscal framework for councils and reform our public services.”

COSLA President Shona Morrison said: “I was very pleased to get a meeting with the new First Minister in his first week in office. It was both a productive and positive meeting with a range of issues discussed.

“I certainly hope we can build a strong working relationship as we jointly go about delivering for the people of Scotland.”

NHS Dentists issue open letter to new First Minister

Following the election of Humza Yousaf as SNP leader and his swearing in as First Minister, dentist leaders in Scotland have called for immediate action to ensure the beleaguered service has a future.

The leadership election has delayed the timetable for reform of the low margin/high volume system dentists work to, that has left providers facing the risk of delivering NHS care at a financial loss. In an open letter the British Dental Association has stressed that without immediate action the exodus from NHS dentistry will accelerate.

A recent survey of high street dentists across Scotland showed over half (59%) have reduced the amount of NHS work they do since lockdown, and four in five (83%) say they plan to reduce or further reduce their NHS commitment in the year ahead.

In the letter BDA’s Scottish leadership state: “In 2021 the SNP made a promise to the Scottish electorate: free NHS dentistry for all. The decisions you take in your first 100 days will effectively determine if that promise is going to be kept.”

Humzah Yousaf’s Cabinet unveiled

BEN MACPHERSON ‘RESPECTFULLY DECLINES’ NEW ROLE

First Minister Humza Yousaf has unveiled his Cabinet team with five members aged under 40 and, for the first time ever, a majority of women.

In a Cabinet of ten that sees the Economy established as a portfolio in its own right:

  • Shona Robison, the new Deputy First Minister, will take on the Finance portfolio, including responsibility for the Scottish Budget
  • Michael Matheson becomes the Cabinet Secretary for NHS Recovery, Health and Social Care
  • Jenny Gilruth joins Cabinet for the first time as Cabinet Secretary for Education and Skills
  • Màiri McAllan joins Cabinet for the first time as Cabinet Secretary for Net Zero and Just Transition
  • Neil Gray joins Cabinet for the first time as Cabinet Secretary for Wellbeing Economy, Fair Work and Energy
  • Mairi Gougeon remains Cabinet Secretary for Rural Affairs, Land Reform and Islands
  • Angus Robertson remains Cabinet Secretary for Constitution, External Affairs and Culture
  • Shirley-Anne Somerville becomes Cabinet Secretary for Social Justice
  • Angela Constance returns to Cabinet as the new Cabinet Secretary for Justice and Home Affairs

Parliament will be asked to approve the new Ministerial appointments today (Thursday). Junior ministerial appointments will also be announced.

First Minister Humza Yousaf said: “The Cabinet team I have unveiled reflects the priorities that we will pursue as a government – including tackling child poverty, improving public services and building a fairer, greener economy.

“Ahead of my appointment as First Minister, I have committed myself to a radical, ambitious and progressive policy agenda for Scotland – and I know that this team is the right one to deliver it.

“I want to thank those Ministers departing government for their leadership over the last few years, through many storms not of our making – the economic damage caused by Brexit, the COVID-19 pandemic, austerity and the cost of living crisis. Those Ministers – led so ably by Nicola Sturgeon and John Swinney – leave a strong legacy for the new team to build on.

“I have made clear my belief Scotland’s government should look as much as possible like the people we represent. As well as being the first ever First Minister from a minority ethnic background, I am pleased that a record number of women have agreed to serve, as well as a significant blend of younger and more experienced members. That said, every single appointment has been made on merit.

“Every single person in this government is clear that it is for the people of Scotland to determine their constitutional future – no one else – and we will work to ensure that they are given that right. As we make the case for Scottish independence, we will continue to govern well and demonstrate to the people of Scotland the benefits of decisions about their lives being taken here in Scotland.

“Subject to Parliament’s approval, the new Ministerial team is ready to get to work delivering for the people of Scotland.”

One notable absence from the new Yousaf team is Northern and Leith MSP Ben Macpherson, who declined to serve in the new government.

The local MSP explained in a short statement on Twitter yesterday: “After serving in 4 @scotgov Ministerial roles in 5 years, today I’ve respectfully declined a 5th.

“I believe I’ve served well & reliably, & I’m proud of all that I’ve helped to deliver through challenging times. I wish the new FM, DFM & colleagues success.

“It’s been an honour.”

Cabinet of 10 will be supported by 18 Junior Ministers

First Minister Humza Yousaf has completed the appointment of his ministerial team. Consisting of 10 Cabinet Secretaries, including the First Minister, the Scottish Cabinet will be supported by 18 Junior Ministers.

First Minister – Humza Yousaf

Minister for Drugs and Alcohol Policy – Elena Whitham

Minister for Independence – Jamie Hepburn

Minister for Cabinet and Parliamentary Business – George Adam

Deputy First Minister and Cabinet Secretary for Finance – Shona Robison

Minister for Community Wealth and Public Finance – Tom Arthur

Minister for Local Government Empowerment and Planning – Joe FitzPatrick

Cabinet Secretary for NHS Recovery, Health and Social Care – Michael Matheson

Minister for Public Health and Women’s Health – Jenny Minto

Cabinet Secretary for Education and Skills – Jenny Gilruth

Minister for Children, Young People and Keeping the Promise – Natalie Don

Minister for Higher and Further Education; and Minister for Veterans – Graeme Dey

Cabinet Secretary for Net Zero and Just Transition – Màiri McAllan

Minister for Transport – Kevin Stewart

Cabinet Secretary for Wellbeing Economy, Fair Work and Energy – Neil Gray

Minister for Small Business, Innovation and Trade – Richard Lochhead

Minister for Energy – Gillian Martin

Minister for Green Skills, Circular Economy and Biodiversity (who will also work alongside the Cabinet Secretary for Net Zero and Just Transition) – Lorna Slater

Minister for Zero Carbon Buildings, Active Travel and Tenants’ Rights (who will also work alongside the Cabinet Secretary for Social Justice) – Patrick Harvie

Cabinet Secretary for Rural Affairs, Land Reform and Islands – Mairi Gougeon

Cabinet Secretary for Constitution, External Affairs and Culture – Angus Robertson

Minister for Culture, Europe and International Development – Christina McKelvie

Cabinet Secretary for Social Justice – Shirley-Anne Somerville

Minister for Equalities, Migration and Refugees – Emma Roddick

Minister for Housing Paul McLennan

Cabinet Secretary for Justice and Home Affairs – Angela Constance

Minister for Victims and Community Safety – Siobhian Brown

Parliament will be asked to approve the new Ministerial appointments today. A more detailed breakdown of ministerial responsibilities will be confirmed in due course.

Support for unpaid carers

Carer Support Payment from @SocSecScot will improve support for unpaid carers, recognising the vital work they do.

It will be piloted in late 2023 ahead of national introduction in spring 2024.

Read @ScotGov‘s consultation response on the new benefit:

https://bit.ly/CSP-consultation-response

Humzah Yousaf becomes First Minister

Humza Yousaf has been nominated to become the sixth First Minister of Scotland, following a parliamentary vote yesterday. As expected the Greens voted with the SNP to secure the nomination.

Mr Yousaf also announced his intention to appoint Shona Robison as Deputy First Minister.

MSPs voted 71 to 57 to select Mr Yousaf as First Minister from a total of four nominees who put themselves forward; he will be formally appointed this afternoon with a Royal Warrant from His Majesty King Charles III.

He will be sworn in at the Court of Session today, where he will take the Official Oath in front of the Lord President of the Court of Session and other senior judges.

First Minister-designate Humza Yousaf said: “This is a really proud day for me and my family. I hope it is also a proud day for Scotland, as it speaks to our values as a country as I stand here as the first ever Muslim to lead a western democratic nation.

“A key priority of my government will be to protect every Scot, as far as we can, from the harm that has been inflicted by the cost-of-living crisis. We will protect and we will reform our NHS and social care and other vital public services – to support our wellbeing economy to improve the life chances of people right across our country. We will rapidly develop plans to extend childcare, improve rural housing, support small businesses, and boost innovation.

“On Thursday, I will nominate the team of Ministers who will deliver on those priorities. I will then set out more detailed policies to this chamber in the first week after the Easter recess.

“I am also pleased to confirm my intention to appoint Shona Robison as Deputy First Minister – her counsel and cross-government experience has been indispensable to me so far, and I look forward to working together as we deliver for the people of Scotland.

“The Parliament has given me the opportunity to help steer this nation’s course, as we make the next stage of that journey together. Doing that will be the honour and the privilege of my life. I will strive every single minute of every day to be worthy of it and will do so in the best interests of our nation.”

No mention of independence, then?

Deputy First Minister-designate Shona Robison said: “I am honoured to accept Humza’s request to be his Deputy First Minister. I look forward to working with him and our Cabinet on the issues that matter most to the people of Scotland.

“I have served alongside Humza for a long time and I know that his leadership will build on the solid foundations we have been left by the former First Minister and Deputy First Minister. His election as First Minister is a historic moment and marks the beginning of a new chapter for the country.”

Lothian Labour list MSP Foysol Choudhury said: “

Responding after the election of Humza Yousaf MSP as First Minister of Scotland, Foysol Choudhury MSP said: “I extend my sincere congratulations to Humza Yousaf MSP on his election as First Minister. 

“Whilst we might have our political differences, Humza has always been friendly and supportive since I entered the Scottish Parliament and I wish him well. 

“It is important to reflect on this significant moment for Scotland, who will now have its first First Minister from an ethnic minority background. 

“This is an excellent reminder that Scotland is diverse and supports people from all backgrounds. 

“No matter your background, religion, ethnicity, gender or identity in Scotland, you can succeed. 

“Humza’s election as First Minister is a stark reminder of that and marks the road towards a more inclusive and progressive Scotland.”

The Tories – the official opposition at Holyrood – were rather less magnanimous – unsurprising given Scotland’s new First Minister is the man they dubbed ‘Hopeless Humzah’:

Humzah Yousaf’s reign as First Minister got off to the worst possible start, however. Mr Yousaf, who just scraped home in the vote to become SNP leader, effectively demoted main leadership rival Kate Forbes by offering her post of Rural Affairs secretary.

Rather than be humiliated Ms Forbes, narrowly defeated in the leadership contest and widely seen as one of the more able ministers in Nicola Sturgeon’s cabinet, rejected the offer and chose instead to return to the backbenches.

Building bridges in a cabinet ‘of all the talents’ clearly isn’t on the Yousaf agenda so we can expect to see the promotion of those MSPs who swore their allegiance to Yousaf during the leadership campaign when cabinet appointment announcements are made.

Inclusive and progressive? We’ll see.

COVID-19 spring booster programme gets underway today

At-risk groups offered additional dose

Residents in care homes for older adults are receiving their spring COVID-19 booster from today (Monday) as the latest stage of the national vaccination programme gets underway.

Following recent advice from the Joint Committee on Vaccination and Immunisation (JCVI), a spring booster dose will also be offered to those aged 75 and over from 11 April and individuals aged five and over with a weakened immune system from 24 April. These groups will either receive appointment details through their preferred means of contact or will be sent details of how to book.

Health Secretary Humza Yousaf said: “We know that people in high-priority groups are at higher risk of serious illness from COVID-19 so I welcome the start of the spring rollout which will offer an additional dose to those who are most vulnerable, boosting their protection.  

 “Prioritising those most at risk has been our approach from the outset and vaccination has been our most effective tool against COVID-19. However, the degree of protection offered does fade over time, which is why booster vaccination is needed.

“I continue to encourage everyone to receive the doses they are eligible for as and when they become available.”

Spring coronavirus (COVID-19) booster | NHS inform

Scottish Government launches campaign to raise awareness of Inflammatory Bowel Disease

A campaign to raise awareness of the bowel conditions Crohn’s and Colitis has been launched as study shows cases are rising.

Crohn’s disease and Ulcerative Colitis – commonly referred to as Inflammatory Bowel Disease (IBD) – are long-term conditions which inflame the gut.

The campaign comes as research from Crohn’s & Colitis UK shows the rates of IBD are higher than previously thought, with Scotland found to have the highest rates in the UK.

Symptoms include a sore stomach, recurring diarrhoea, weight loss and extreme tiredness, which if not treated can lead to complications.

The campaign will raise awareness of the symptoms with posters and leaflets in GP surgeries and community centres, as well as social media, urging anyone who is concerned to contact their GP practice.

Cabinet Secretary for Health and Social Care, Humza Yousaf said: “Raising awareness of Crohn’s and Colitis is crucial to ensure we can get people diagnosed as early as possible, and give them the right care and treatment.

“This will help them to get the best support, make informed choices about their diet – and live their lives to the full.

“As part of the Modernising Patient Pathways Programme from the Centre of Sustainable Delivery, improvements have already been made for patients with IBD and we will continue working with the third-sector and people with the condition to make sure this important work continues.”

Sarah Sleet, CEO of Crohn’s & Colitis UK said: “We know that there are over 50,000 people in Scotland living with Crohn’s Disease and Ulcerative Colitis but too many take too long to get diagnosed.

“For one in four, it’s over a year and nearly half of them end up in A&E in the meantime. Recognising the symptoms of Crohn’s and Colitis, which are widely misunderstood, and having the confidence to talk to a healthcare professional are the first steps on the path to a diagnosis. 

“We’re thrilled that the Scottish Government is leading the rest of the UK in raising public awareness of Crohn’s and Colitis, to improve the lives of everyone affected.

Our message is simple: if you have frequent diarrhoea, stomach pain or blood in your poo, don’t suffer in silence, go and see your GP. The earlier you find out what’s wrong, the sooner you can get the help you need.”