Commenting on today’s Scottish draft budget for 2016/17, CIPFA’s Head of Devolved Government, Don Peebles, says:
“This is an historic budget. For the first time ever Scotland has set its own income tax.
“Even though Scots will pay no more or less, it is a locally set rate of 10p, which will generate £4.9bn and may vary in the future from the UK rate.
“The NHS gains a real terms increase of 6.5%. However, local government loses out with a real terms reduction in funding of more than 7% over one year.
“The budget also signals immediate tax reform. It proposes assigning income tax receipts to local government.
“CIPFA welcomes this swift response to the report of the Commission on Local Tax Reform.”
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