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Scottish Budget 2020-21 – preliminary analysis

The fourth budget of this parliamentary term has, as expected, led to a healthy increase in the resources available to the Scottish Government.

So what were the key points from the budget?

The overall outlook for public spending

Spending on public services is up by around 3.6% in real terms in budget 2020/21 compared to budget 19/20 – excluding new responsibilities on social security and farm payments.

Tax Policy

The Scottish Government chose to once again freeze the tax threshold for the higher rate, which will, as earnings rise, take more people into the Higher Rate band.

Spending Commitments

Continuing the theme of recent budgets, health has seen a disproportionate increase in spending, with the resource budget for health up just under 5% in real terms.

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About the author

The Fraser of Allander Institute, based at Strathclyde University, is a leading economic research institute with over 40 years of experience in finding practical solutions to real-world economic problems. Follow their activities & reports at @Strath_FAI

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