The news is filled daily with what the government are doing to help the economic crisis, and the recent announcement from Kwasi Kwarteng delivering his first mini-budget seemed to offer a change of direction. But what does this mean to Scotland?
The chancellor has included a number of measures in his first budget which affect Scotland, including the reversal of April’s National Insurance increase for employers and employees and the retention of the corporation tax rate. Scotch whisky distillers and brewers will welcome an end to planned reforms of alcohol duty.
The budget also confirms that a number of benefits will continue to be devolved to the Scottish Government, including support for smaller businesses.
The chancellor has cut stamp duty for first-time buyers from 12% to 0% as part of his mini-budget. But the principle is that this tax break applies only in England and Northern Ireland, while Scotland and Wales have their own separate systems.
The effect of cutting the basic rate income tax for the rest of the UK is a boost for Holyrood of £340m over the next financial year and the year after.
What can Holyrood ministers do with that money?
They can cut taxes in similar ways or different ways, or they can use that money to spend on different priorities.
However, for Scottish home buyers, there are no immediate benefits; it appears we are at the hands of the Scottish government and what they plan to use their £340m on over the coming months.
Source BBC
