Both Scotland and Wales rely on information in the UK Budget to set their own spending plans, not least announce information regarding the Scottish Income Tax (SIT) regime and the Welsh Rates of Income Tax (WRIT). With the UK Budget being held on 26 November 2025, later than usual, it is no surprise that the Scottish and Welsh Budgets look set to be delayed.
In Scotland, Shona Robison, Scottish Cabinet Secretary for Finance and Local Government, indicated to the Finance and Public Administration Committee of the Scottish Parliament she was ‘minded’ to propose publishing the Scottish Budget for 2026/27 and supporting documents on 15 January 2026. In reply, Kenneth Gibson MSP indicated on 01 October 2025 that the Scottish Budget documentation should be published earlier, by Tuesday 13 January 2025;
In Wales, Finance Secretary Mark Drakeford outlined the Welsh Government’s proposed timeline in July 2025, indicating that the Draft Budget would be on 03 November 2025. However, this announcement was made before the UK Government’s announcement of a late UK Budget. The final Budget will not be published until 20 January 2026
It would appear the late UK Budget is going to have consequences in the above devolved nations which, in turn, will impact payroll professionals and software developers.
For Bookkeepers
Late Budget dates in Scotland and Wales will leave little time ahead of the start of tax year 2026/27, plus the Budget process in both nations will be further truncated because of Scottish Parliament and Welsh Senedd election in May 2026. This will mean Members of the Scottish Parliament (MSPs) and Members of the Senedd (MSs) will leave their posts ahead of the election, possibly in March 2026.
As well as Income Tax, remember there are devolved taxes to consider as well:
- In Scotland, this is Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax (SfLT) plus the Scottish Aggregates Tax (SAT) which is set to go live from 01 April 2026;
- In Wales, this is the Land Transaction Tax (LTT) and the Landfill Disposals Tax (LDT)
