Scotland to receive extra £3.4bn from UK Budget, says chancellor

Scotland volition person an further £3.4bn successful Treasury backing arsenic a effect of the UK authorities Budget, according to Chancellor Rachel Reeves.

Reeves, formally mounting retired her spending plans for the archetypal time, said it would beryllium the largest real-terms backing colony since devolution.

Labour sources said the Scottish authorities would besides person an further £1.5bn to walk successful the existent fiscal year.

First Minister John Swinney had called for the UK authorities to "immediately and significantly" summation backing for Scotland up of the Budget.

The SNP authorities has already chopped £500m from its fund this year, with ministers informing that without other currency they would request to marque hard choices erstwhile they acceptable retired their taxation and spending plans for adjacent twelvemonth successful December.

Reeves said the backing announced successful the Budget "must beryllium utilized efficaciously successful Scotland to present the nationalist services that the radical of Scotland deserve".

Some of the measures included successful the Chancellor's Budget bash not use to Scotland.

However, spending decisions successful areas that are devolved to the Scottish government, and that volition lone use southbound of the border, besides person a knock-on effect for the Holyrood administration’s finances done what is known arsenic the Barnett Formula.

That is due to the fact that it gets a fixed stock of changes to budgets of UK authorities departments specified arsenic transport, justice, wellness and acquisition – areas of authorities devolved to Scotland – arsenic portion of its backing statement with the UK Treasury.

Among the cardinal issues that impact Scotland is an summation successful minimum wages, with hourly rates for over-21s acceptable to emergence from £11.44 to £12.21 an hr from April.

The complaint for 18 to 20-year-olds volition summation from £8.60 to £10, portion the minimum wage for apprentices volition emergence from £6.40 to £7.55.

The chancellor besides confirmed a windfall tax the UK authorities levies connected the profits made by lipid and state firms volition emergence from 38% from 35% connected 1 November, and volition stay successful spot until 2030.

North oversea lipid and state firms had campaigned against the increase.

Reeves besides said plans to levy VAT connected backstage schoolhouse fees would rise much than £9bn aross the UK.

The chancellor besides announced:

• A 5p chopped to substance work connected petrol and diesel, owed to extremity successful April 2025, volition beryllium kept for different year
• Firms are to wage National Insurance connected workers’ net supra £5,000 from April, down from £9,100 currently, with the complaint expanding from 13.8% to 15%
• Employment allowance - which allows companies to trim their NI liability - is to summation from £5,000 to £10,500
• The main complaint of corp tax, paid by businesses connected taxable profits implicit £250,000, is to stay astatine 25% until the adjacent election
• Tax connected non-draught alcoholic drinks - including whisky - is to summation by the higher RPI measurement of inflation, but taxation connected draught drinks is to beryllium chopped by 1.7%
• Capital gains taxation paid connected profits from selling shares to summation from up to 20% to up to 24% - with rates connected further spot income to enactment the same
• Freeze connected inheritance taxation thresholds extended beyond 2028 to 2030
• The £70m agrarian maturation woody for Argyll and Bute volition advancement pursuing a spending review
• Funding for a greenish hydrogen task successful East Renfrewshire

Reeves said the authorities would "restore stableness to our country" and "protect moving people."

The chancellor added the Labour medication was "fixing the foundations of our economy, investing successful our future, delivering change, rebuilding Britain".

SNP Westminster Leader Stephen Flynn MP welcomed further backing for nationalist services, but said the Budget “fails to present the transformative alteration radical successful Scotland were promised”.

He criticised the government’s determination to rise employers’ National Insurance contributions, and said it should person u-turned connected its winter substance outgo cut and scrapped the two-child payment cap.

Flynn added: "After fourteen years of the Tories, this UK fund should person been the accidental to wholly crook the leafage but radical successful Scotland are inactive paying the terms for Brexit and Westminster cuts, which are wiping billions of pounds from nationalist finances and household incomes."

Scotch Whisky Association main enforcement Mark Kent described the summation connected spirits work arsenic a “hammer blow”.

The levy was accrued by 10% by the erstwhile UK government, and manufacture bosses had been hoping for a reprieve.

Mr Kent accused Reeves of expanding “tax favoritism of spirits successful the Treasury’s warped work system, and with 70% of UK spirits produced successful Scotland, that volition bash further harm to a cardinal Scottish sector”.

MPs volition walk respective days debating the UK government's plans, earlier being asked to o.k. them successful the signifier of a concern bill.

The announcement informs the Scottish authorities - which is owed to denote its fund connected 4 December - however overmuch tin expect to person 2025-26.