When Scotland’s finance secretary, Shona Robison, delivered the Scottish budget for 2026-27 on January 13, she framed it as a budget for families that would ease pressure on household finances. Coming only a few months before the Scottish parliamentary elections in May, this budget is especially significant.

On income tax, the message from the Scottish National Party-led government was clear. Hitting out at recent UK national budgets, Robison argued, correctly, that freezing income tax thresholds means that more of people’s pay is taxed, or taxed at a higher rate. She told the Scottish Parliament: “I am making a different choice.”

While it’s true there is a difference, in reality that difference is limited. The Scottish parliament sets income tax rates and bands on most income earned by taxpayers in Scotland. Unlike in the rest of the UK, there are six rates – starter, basic, intermediate, higher, advanced and top – ranging from 19% to 48%.

What matters is not the number of bands but the size of the jump between them. Income in the intermediate band is taxed at 21% up to £43,662. Income above that point is taxed at 42%.

However, the UK parliament still controls key elements of the system, including allowances, reliefs and tax on savings and dividend income.

While some of Scotland’s income tax thresholds have been raised in this budget, others were left frozen. This means many people will still see their tax bills rise over time, even though headline tax rates have........

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