Autumn Budget 2024 - What It Means For Scotland?

Scotland will receive an additional £3.4bn in Treasury funding as a result of the UK government Budget, according to Chancellor Rachel Reeves.

Reeves, formally setting out her spending plans for the first time, said it would be the largest real-terms funding settlement since devolution.

Labour sources said the Scottish government would also receive an additional £1.5bn in the current financial year.

Scottish Finance Secretary Shona Robison said while the Budget was a "step in the right direction", her government was disappointed with aspects of the tax and spending plans.

Among the key issues that affect Scotland is an increase in minimum wages, with hourly rates for over-21s set to rise from £11.44 to £12.21 an hour from April.

The rate for 18 to 20-year-olds will increase from £8.60 to £10, while the minimum wage for apprentices will rise from £6.40 to £7.55.

The chancellor also confirmed a windfall tax the UK government levies on the profits made by oil and gas firms will rise from 38% from 35% on 1 November, and will remain in place until 2030.

João Sousa, deputy director at the Fraser of Allander Institute, an independent think tank, said the UK Budget was “likely to make the Scottish government’s job of balancing its budget significantly easier" thanks to a £1.5bn increase in funding in 2024-25.

However, he said several hundred million pounds of the £3.4bn increase next year would be swallowed up by higher costs for public sector employers being asked to pay National Insurance contributions.

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