The winners and losers in the Scottish budget

The winners and losers in the Scottish budget The Scottish government has unveiled its draft budget for 2026-27 - just four months before the Holyrood election. This is what it could mean for you. Image:Finance Secretary Shona Robison unveiled Scotland's draft budget on Tuesday Wednesday 14 January 2026 13:05, UK The Scottish government has unveiled its draft budget for 2026-27 - with a boost to its child payment benefit, changes to income tax and new taxes on expensive homes and private jet travel. Finance Secretary Shona Robison says the SNP administration's spending plans would benefit families and was a budget for a "more prosperous Scotland" . It comes just four months before the Holyrood election, so some of the pledged changes are dependent on the party retaining power. THE WINNERS Scottish Child Payment The Scottish Child Payment will be increased to £40 per week for families with a child under the age of one. The change is scheduled come into force at the beginning of the 2027-28 year. It is currently £27.15 per week. The benefit, which is given to low-income families, will also increase in line with inflation. Ms Robison said: "The first year of a baby's life is one of the most exciting times for any family, but we know this time can bring extra stress and costs too. "This support for mums and dads will help them through that critical first year of their child's life, delivering the best start in life for children and for families." Breakfast clubs The government has pledged funding to set up breakfast clubs in every primary and additional support needs (ASN) school by August 2027. Ms Robison said it would give parents the opportunity to drop their children off at school earlier, which could open up new shifts at work. She added: "For some, families saving on the cost of breakfast. For others, the kids getting a breakfast that they wouldn't otherwise receive, fuelling them to learn." WINNERS AND LOSERS Income tax A tax cut has been provided to low earners. Thresholds for the basic (20%) and intermediate rates (21%) will increase by 7.4% to £16,537 and £29,526 respectively. This will push some workers into lower tax brackets and keep others from paying more. The rise is expected to cost the government £50m in the coming financial year, according to the Scottish Fiscal Commission, while the decision to continue the freeze for other bands up to 2028-29 will see a £200m boost in that year. The increase to the rates means the Scottish government can continue to claim that the majority of Scots pay less tax than they would elsewhere in the UK, a claim which has been debunked by experts in recent years. Ms Robison later admitted lower earners would not save a "great deal of tax" due to the budget. But she said the package of support, including tax and social security, was worth about £480 a year. Meanwhile, in 2025-26 there were 728,000 taxpayers in the higher, advanced...

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