Scottish Budget supported by Green Party

04 February 2019

Finance Secretary Derek Mackay has reached an agreement with the Scottish Green Party to support the Scottish Budget at all parliamentary stages.

In letters exchanged on 31 January 2019, Mr Mackay outlined a package of reforms to local government.


Scottish rates and bands for 2019-20

The Scottish Budget (12 December 2018) announced the proposed income tax rates and bands for 2019-20 as per the table below. The personal allowance is determined by the UK government so will increase to £12,500. The starter rate and basic rate thresholds are to increase by inflation, but the higher rate threshold is to remain frozen at £43,430.


Band name


Over £12,500* - £14,549

Starter Rate


Over £14,549 - £24,944

Scottish Basic Rate


Over £24,944 - £43,430

Intermediate Rate


Over £43,430 - £150,000**           

Higher Rate


Above £150,000**

Top Rate


* Assumes individuals are in receipt of the standard UK personal allowance.

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


The proposals are dependent on securing the support of the Scottish Greens on Stage 1, Stage 2 and Stage 3 of the Budget Bill, as well as support for the Local Government Finance Order, and ensuring that the Scottish Rate Resolution and Non-Domestic Rates orders pass successfully through parliament.


According to BBC News Finance Secretary Derek Mackay said he was "pleased to have reached an agreement" minutes before the Holyrood budget debate was due to begin.

The stage one vote passed by 67 votes to 58, with one MSP abstaining.

The deal struck with the Greens - the third in consecutive years - includes:

  • £90m for the core local government settlement
  • Cap on council tax rises increased to 4.79%
  • A move to three-year local authority budgets
  • Legislation to allow councils to set a local "tourism tax"
  • Power for councils to set a levy on workplace car parking spaces
  • Cross-party talks on replacing the council tax