Scottish Budget for 2021-22 unveiled
29 January 2021
On 28 January 2021, the Finance Secretary, Kate Forbes, delivered the Scottish Budget for 2021-22, which detailed the Scottish Government’s spending and taxation plans for the year ahead, including details of the support that will be offered towards jobs and skills, equalling approximately £1.1 billion.
The income tax thresholds and rates for 2021-22 have been confirmed, as the table below demonstrates:
* Assumes individuals are in receipt of the Standard UK Personal Allowance
** The Top Rate remains at 2020-21 level. Those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000
A clear focus is placed on the creation of jobs, as follows:
- A new Green Workforce Academy will be established, designed to assist people in securing work in the low carbon economy
- A £100 million Green Jobs Fund
- £7 million, which will be put towards ensuring that Scotland is a hub for digital business
- £125 million for the Young Person’s Guarantee, employability, and skills
Additionally, more than £16 billion in funding will be provided towards health, which is a 5.3% increase on that given in 2020-21. A further £869 million will be put towards combatting coronavirus, which will include funding for both the vaccination and test and trace programmes.
£90 million will be awarded to local authorities, to support family budgets and to freeze Council Tax.
Public sector workers who earn less than £25,000 per annum can expect to receive a minimum of a 3% pay increase, and there will be a 1% rise for individuals earning above that amount. This will be capped at £800 for those earning over £80,000.
Some other key points include:
- £11.6 billion for local government, to include the £90 million for the local authorities opting to freeze Council Tax. There will also be £259 million allocated to one-off funding
- £1.9 billion will be put towards primary health care for delivering more services in the community
- £98.2 million towards improving Scotland’s digital infrastructure, and delivering access to high quality broadband and mobile coverage
- £711.6 million will be allocated to affordable housing, and £68 million for the first full year of the Scottish Child Payment
- £55 million towards a programme to support town centres and community-led regeneration projects
- Over £3.1 billion for resource and capital investment for education and skills. £567 million will be put towards providing 1,140 hours of early learning and childcare
- £1.3 billion for the Scottish Police Authority
- £1.6 billion towards rail and bus services
- The Rural Tourism Infrastructure Fund will be doubled, to enable tourist attractions and local communications to make improvements for an increase in the numbers of visitors
- £27 million will be put towards the expansion of woodland creation and the associated infrastructure
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