Scottish Budget 2022-2023

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SCC Responds To The Scottish Budget For 2022-23

Scottish Budget 2022-2023

Kate Forbes MSP - Cabinet Secretary for Finance and the Economy

Finance Secretary Kate Forbes has set out a “transitional” draft Budget at Holyrood.

She said there were reasons for optimism in the economy as the Scottish Fiscal Commission forecasts a recovery to pre-pandemic levels by April to June next year – two years earlier than previously forecast.

The budget report can be viewed on the Scottish Government’s website and some of the key announcements are summarised below.


  • The council tax freeze – introduced to alleviate the impact of the pandemic on households – will come to an end and local authorities will be given “full flexibility” in setting rates for 2022-23.


  • Income Tax rates in 2022-23 will remain unchanged.
  • The starter and basic rate bands are to increase in line with inflation, while the higher and top rates will remain frozen at their current levels.
  • Land and buildings transaction tax will remain at the same level.


  • Business rates relief of 50% for retail, hospitality and leisure businesses will continue for the first three months of the next financial year while small businesses will pay nothing.
  • Retail, hospitality and leisure businesses, as well as those in the aviation sector, have been given 100% relief as a result of the pandemic.
  • Firms on high streets with a rateable value of less than £15,000 will pay nothing in rates for the whole year, while a new build on high streets will also pay nothing in rates for 12 months after occupation.


  • The Scottish Government is investing £25m this year to start work on transforming farming and food production in Scotland to “be world-leading in sustainable and regenerative agriculture” and a further £69.5m to be invested in woodland creation and sustainable management of Scotland’s woodlands.
  • £2 billion of low-carbon capital investment will go to infrastructure announced for decarbonising homes, buildings, transport and industry.
  • £20 million goes to the 10-year Just Transition Fund, to help the north east and Moray transition from carbon-based industries.

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