MSPs approve Scottish income tax rates ahead of Budget debate

MSPs have approved Scotland’s income tax rates, with the Finance Secretary saying a record level of revenues will be generated by the system next financial year.

Shona Robison said £25 billion will be raised next year by Scottish income tax.

MSPs voted for the Scottish Rate Resolution by 86 votes to 27, with all parties save the Conservatives supporting it.

Holyrood’s rules mean the Parliament cannot hold its stage three Budget debate – due to take place next week – until the rate resolution has been passed.

In the debate ahead of the vote, Ms Robison said the Government aims to raise revenues in a “fair and progressive manner”.

Ms Robison said: “In total, the SFC estimate Scotland’s income tax policy will raise a record £25 billion for the Scottish budget in 2025/26.

“That’s £745 million more than they forecast for the Scottish budget last year.

“Make no mistake what this means, more money for nurses, GPs, teachers and the police directly as a result of the decisions we have taken on tax.”

But Conservative Craig Hoy hit out at the plans, saying there is “no case” for the Scottish tax structure being more complex than the rest of the UK’s.

He said there is “mounting evidence” that higher Scottish rates in the upper bands is leading to behavioural change.

Scottish Labour’s Michael Marra said the Scottish Government has more money to spend as a result of Chancellor Rachel Reeves’s Budget, and that his party would not stand in the way of the rate resolution.

However he said Labour has a “legitimate aspiration” to simplify the Scottish tax system.