Rachel Reeves delivering her Budget to the House of Commons (Image: House of Commons/UK Parliament/PA Wire)
Chancellor Rachel Reeves’ has delivered the first Labour' Budget since March 2010.
Here are the key points and what the figures mean for Scotland:
- £3.4bn extra for Scottish Government through Barnett Consequentials
- Freeze on income tax and National Insurance thresholds to end in 2028
- Energy profits levy to rise to 38%, extended to March 2030
- Fuel duty on petrol and diesel to be frozen at current level for another year
- Tax on non-draught alcoholic drinks to increase by the higher RPI measure of inflation
- Tax on draught drinks cut by 1.7% - taking a penny off a pint
Tax on tobacco to increase by 2% above inflation, and 10% above inflation for hand-rolling tobacco
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- A “flat rate duty” on vaping liquid will be introduced from October 2026.
- Legal minimum wage for over-21s to to £12.21
- Rate for 18 to 20-year-olds to go up from £8.60 to £10
- Capital gains tax paid on profits from selling shares to increase to 24%
- Freeze on inheritance tax thresholds extended beyond 2028 to 2030
- Firms to pay National Insurance on workers’ earnings above £5,000 from April, with the rate increasing from 13.8% to 15%
- Employment allowance - which allows companies to reduce their NI liability - to increase from £5,000 to £10,500
- Main rate of corporation tax, paid by businesses on taxable profits over £250,000, to stay at 25% until next election
- Air Passenger Duty on flights by private jet to go up by 50%
- Eligibility widened for the allowance paid to full-time carers, by increasing the maximum earnings threshold from £151 to £195 a week
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