Key sectors of the Scottish economy such as oil and gas and the games industry have been targeted for specific support in the Budget while a further cut in Corporation tax will help all businesses in Scotland.
The Budget will mean that 162,000 lower paid Scots no longer have to pay income tax, Scottish Secretary Michael Moore said today. He also highlighted the importance of the Budget for Scottish jobs and investment.
Mr Moore said key sectors of the Scottish economy such as oil and gas and the games industry have been targeted for specific support in the Budget while a further cut in Corporation tax will help all businesses in Scotland.
The Scottish Secretary also highlighted that since the 2010 Spending Review the Scottish Government have now received more than £1 billion in extra revenue from Barnett consequentials, of which £730m is for extra Capital spending. In the coming financial year, 2012-13, the Scottish Government will receive £336.3m more than originally allocated in the 2010 Spending Review.
Budget 2012 measures which will help Scotland include:
* An increase in Personal Allowance by a further £1,100 in April 2013 will remove a further 73,000 Scots from tax and benefit 2.1m Scots. This means that more than 160,000 Scots have now been removed from the tax system under this Government.
* Raising the individual threshold for the withdrawal of child benefit to £50,000 will benefit 63,000 households in Scotland.
* A package of oil and gas measures that will stimulate billions of pounds of additional investment and increase production in the UK Continental Shelf.
* The Government will introduce corporation tax reliefs for the video game industry from April 2013.
* Corporation tax is being cut by an additional 1 per cent to 24% in 2012 and will be cut to 22% by 2014. Corporation Tax stood at 28% when this Government came to office.
* The National Loan Guarantee Scheme announced yesterday will help smaller businesses in Scottish receive cheaper loans.
* The Government will make 100% capital allowances for plant or machinery investment from April 2012 at agreed sites at Irvine, Nigg and Dundee.
* There are Barnett consequentials in this Budget of £20.3m
* Total Barnett consequentials since the 2010 Spending Review now exceed £1bn. This is £730.3m in Capital DEL and £367.2m in Resource DEL.
* The total additional Barnett consequentials for 2012-13 since the Spending Review are £336.3m
The Scottish Secretary Michael Moore said:
“The Government has used this Budget to provide greater fairness for individuals and to help Scottish businesses. This is a Budget that will create more jobs in Scotland and it will help those who are already in jobs.
“We are committed to taking lower paid Scots out of the tax system altogether. The increase in personal allowances is the biggest rise in the last thirty years and will mean that a further 73,000 people in Scotland will not pay income tax.
“Key Scottish industries like the oil and gas sector and the games industry will benefit from specifically targeted measures in this Budget. We are also supporting Scottish business as a whole with another reduction in Corporation Tax to 24%. We have reached our original target for the Parliament and set out our ambitious new target to help Scottish business with further reductions to 22%.
“I am also pleased that we are able to offer tax help to the games industry in Scotland. Places like Dundee and Edinburgh will benefit from this move and I believe it can provide a real boost for this important industry.
“This Budget ensures the continuing stability of the UK economy while providing real help to people and business in Scotland. Scotland benefits from being part of a strong United Kingdom on the one hand and at the same time being able to take devolved decisions in Edinburgh. Since the Spending Review 18 months ago the Government has now allocated £1 billion in extra resources for the Scottish Government to spend. Nearly three-quarters of that money was for capital projects.
“Devolution provides the best of both worlds for Scotland and this Budget provides real help for people and business in Scotland.”