Scottish budget: what it means for businesses

by Liam Furby
Posted on
7 years ago
2 min read

The SNP budget for the year ahead has been passed by the Scottish Parliament. You can get a quick summary of the budget here. 

It’s a budget that makes significant new investments to ensure that Scotland is the best place to do business and invest.

 

And it will ensure that Scotland’s economy can meet the challenges and seize the opportunities of the future. Here’s how.

 

  • Businesses will continue to benefit from the Small Business Bonus, ensuring 100,000 businesses play no rates whatsoever.

 

  • Almost £100 million of extra support will ensure Scotland continues to have the most attractive business rates package in the UK. A new Growth Accelerator will ensure that new or improved properties pay no rates for a year. And increases in the rates poundage will now be capped at the lower CPI inflation rate, rather than the higher RPI inflation measure.

 

  • Income Tax reforms will ensure Scotland is the fairest taxed part of the UK, with 7 out of 10 taxpayers paying less than they do now.

 

  • £600 million will be invested in delivering superfast broadband to all homes and premises by 2021 – a commitment unmatched anywhere else in the UK.

 

  • £756 million will be invested this year in our plan to deliver 50,000 affordable homes by 2021 – two-thirds of which will be for social rent.

 

  • Overall, £4 billion will be invested this year in infrastructure, including £1.2 billion in improving transport links. This will include expanding electric trains, dualling the A9 and making it Scotland’s first electric highway.

 

  • Investment in city region deals will be doubled – supporting jobs and growth across Scotland.

 

  • Support for business research and development will increase by 70 per cent.

 

  • £340 million has been committed to setting up a Scottish National Investment Bank.

 

  • A new £60 million Low Carbon Innovation Fund will be established to support innovative low carbon energy infrastructure solutions and for electric vehicles.

 

  • A new £150 million Building Scotland Fund will support new house building, develop new low carbon commercial property and support research and development.

 

  • £18 million will be invested to begin the establishment of a National Manufacturing Institute to make Scotland a world leader in advanced manufacturing.

 

  • An initial £10 million will be invested in the establishment of a South of Scotland development agency.