Scottish Budget 2022-23
09 December 2021
On 9 December 2021, Kate Forbes delivered the Scottish Budget for tax year 2022-23. Two of the key announcements related to Scottish tax rates and bands and increases for those working within the public sector and for social care staff.
Tax rates and bands
Scottish Income Tax rates will remain unchanged for tax year 2022-23.
It has been confirmed that the Starter and Basic Rate bands will increase by the Consumer Price Index (CPI) inflation (which is 3.1%). The Higher and Top Rate thresholds will remain frozen in cash terms at £43,662 and £150,000.
The table below illustrates how that will look:
| Band | Income Range | Rate |
| Starter Rate | Over £12,570 - £14,732 | 19% |
| Basic Rate | Over £14,732 - £25,688 | 20% |
| Intermediate Rate | Over £25,688 - £43,662 | 21% |
| Higher Rate | Over £43,662 - £150,000* | 41% |
| Top Rate | Over £150,000** | 46% |
*Assumes individuals are in receipt of the Standard UK Personal Allowance
**The Top Rate remains at 2021-22 level. Those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000
Public sector and social care increases
One of the announcements made within the Budget speech was that social care workers will have their hourly rate increased from a minimum of £10.02 per hour to £10.50 per hour across any bodies covered by the pay policy.
Support is also going to be aimed at the lowest-paid staff in the public sector. Increases will be available of a minimum of £775 for those earning less than £25,000, £700 for people receiving £25,000 to £40,000 and £500 for those earning over £40,000.
The Scottish Budget can be accessed in full here.
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