The devolved Scottish Government have published their Programme for Government though to 2031. This is important for the people who live in this part of the UK. ICB points to this and highlights some relevant points for members
For people that live in Scotland, their Government’s Programme for office is an important document as it outlines what is planned for the duration of the term. Therefore, Scottish residents should read the Scottish National Party’s ‘Ambitious for Scotland Programme for Government 2026 – 2031’. ICB highlights the Scottish Government’s plans that may affect members and their clients professionally:
- There is the pledge for a national roll-out of £2 bus fares across Scotland by the end of the current Parliament;
- The pledge to expand the Scottish apprenticeship routes and develop a new Apprenticeship Accelerator Grant focused on SMEs. There is also the pledge to ‘work with universities to deliver new Knowledge Transfer Partnerships (KTPs) connecting businesses with academic institutions’;
- ‘Explore’ options to recognise employers who provide fair, flexible and healthy work, through access to funded training via a new Flexible Workforce Development Fund;
- A consultation is promised on a new ‘childcare offer’ that will extend the current provision to support 52 weeks a year for children from 9 months old to the end of primary school;
- Review the recommendations of the independent review on the valuation methodology applied to non-domestic property in the hospitality sector (the Gill Review). This is due to report by the end of 2026 and will consider the application of business rates to this sector;
- The development of ‘AI Scotland’ which will be designed to build public ‘trust and confidence in AI’. This will be interesting if it does become the ‘national voice’ outlined in the Programme;
- In the oil and gas sectors, there is the commitment to maintain the Just Transition Fund which supports workers and communities in the move to achieving low‑carbon energy and net‑zero goals. Plus, this will be expanded to new community projects and be supported by other funding to the oil and gas sectors; and
- The Scottish Government website (gov.scot) will launch a new app called ScotGov to enable engagement with multiple services without having to use multiple logins and websites. This sounds very much like the Gov.UK app which often applies to England only
As with Wales, another UK devolved nation, the Scottish Government can only act on powers devolved from Westminster to their control. ICB highlights things to look out for:
- There is the pledge for public service reform which will impact those services that are devolved to Scotland, for example, Local Government and the National Health Service (NHS). There is also the pledge to renationalise some public bodies in the name of ‘decluttering the public sector’, reducing work that may be duplicated;
- There is mention of Scotland’s ‘progressive approach to income tax and benefits’ which includes the Scottish Child Payment (administered by Social Security Scotland). Therefore, with regard Scottish Income Tax (SIT), expect to see this progressive approach followed, with inflation-linked increases to the lower thresholds for Scottish Taxpayers;
- The sub-heading ‘maximise take-up of benefits’ indicates the Scottish Government will promote the Scottish and UK benefits system, ensuring individuals claim the benefits they are entitled to. We assume this includes the Universal Credit, something that is regulated by employers and their RTI submissions;
- There is the pledge to ‘consider’ changes that may be required to make Council Tax debt recovery fairer. This could result in changes to the Scottish Earnings Arrestment;
- The Scottish Government will ‘call’ for the full devolution of employment law to Scotland. This would break up the employment law jurisdiction of Great Britain which is already a separate UK employment law jurisdiction from Northern Ireland). This is a complication that may be in the interest of Scottish workers but will not be in the interest of professionals and software developers;
- There is the pledge to ‘explore opportunities for Revenue Scotland’ which is Scotland’s devolved tax collection and administration body. For the range of devolved taxes and beyond, this is something to look for; and
- Towards the end of the Programme there is the Scottish Government’s legislative agenda for the first year which includes the Scottish Budget (which is necessary anyway). It also announces that there will be a Food Prices (Scotland) Bill which will set price caps on certain food items which may impact the retail sector as well as individuals buying the food
The Scottish Government’s Programme for Government is larger than the Welsh Government’s simply because there are more issues in their remit.
For Bookkeepers
For members who deal with Scotland’s devolved taxes, perhaps the main issue is the possible expansion of Revenue Scotland’s remit. Which highlights the three tax collection and administration agencies in the UK:
1. HMRC – for UK taxes, including Income Tax for Scottish and Welsh Taxpayers;
2. Revenue Scotland – for taxes fully devolved to Scotland; and
3. The Welsh Revenue Authority – for taxes fully devolved to Wales
There is no tax collection agency in Northern Ireland as, currently they have no tax revenue-generating powers.