Overview
- Thresholds for the basic and intermediate income tax bands will rise by 7.4% from April 2026, delivering small savings for lower earners while higher-rate thresholds remain frozen to 2028-29, pulling more people into higher bands.
- The Scottish Child Payment will increase to £40 a week for under‑ones from 2027-28 and will be uprated with inflation, alongside pledges for breakfast clubs in every primary school by August 2027 and a 2026 summer of free sports activities.
- Health and social care funding is set at £22.5bn for 2026-27, including a record £17.6bn for NHS boards, £36m for walk‑in GP clinics and a commitment that adult social care staff receive at least the real living wage of £13.45 an hour.
- New revenue measures include two council tax bands for homes over £1m from April 2028, an air departure tax starting April 2027 with a potential Highlands and Islands exemption, and a separate private‑jet levy planned after April 2027.
- The Scottish Fiscal Commission, Auditor General and think-tanks question optimistic savings and pay assumptions and highlight a near £5bn shortfall by the decade’s end, as analysts say the tax cut for many workers is only marginal.