On Thursday 9th December, Finance and Economy Secretary, Kate Forbes, delivered the Scottish Budget for tax year 2022-23. The Budget covers changes to tax bands and an hourly rate increase for social care and public sector workers.
Tax Rates and Bands
For tax year 2022-23, Scottish income tax rates will remain unchanged, however the Budget confirmed that the ‘starter’ and ‘basic’ rate bands will increase in line with Consumer Price Index (CPI) inflation (3.1%). The ‘higher’ and ‘top’ rate bands will remain frozen at 41% and 46%.
Public Sector and Social Care Hourly Rate Increase
It was announced that the minimum wage for social care staff and people covered by the Public Sector Pay Policy will rise to £10.50 an hour. The Public Sector Pay Policy for 2022 will focus on those on low incomes, ensuring an inflationary uplift of at least £775 for those earning up to £25,000, £700 for those earning between £25,000 and £40,000 and £500 for those earning above £40,000.
More highlights from the Scottish Budget can be found here.
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