Jeremy Hunt’s shredding of Westminster’s mini-budget means plans that would have brought an extra £500m to Holyrood over the next two years are overturned.
As the basic rate of income tax was due to fall in the rest of the UK, the Treasury is required under Holyrood’s funding formula to provide the same amount it would cost if the cut were to apply in Scotland.
A further tax cut remains in place, which will mean more money coming into Holyrood. Land Stamp Duty is levied on those buying property in England and Northern Ireland.
The threshold rise for this is ongoing, meaning a further sum is added to Holyrood’s block grant of around £60m a year.
Other measures that were welcomed by Scottish business when Kwasi Kwarteng announced them will not be implemented: duty-free shopping for overseas visitors, which would help some retail businesses, and a freeze on alcohol duty, which distillers of whiskey were punished agitation.
Potentially the biggest change in Jeremy Hunt’s budget will be a reduction in the commitment to the energy price guarantee. It runs for just six months instead of the previously promised two years and will be revised from April next year to become better targeted and targeted at improved energy efficiency.
This is likely to mean less for owners of larger homes with higher heating bills and potentially for businesses with a large appetite for energy.
Add Comment