Scotland’s Cabinet Secretary for Finance and Local Government has presented the draft Scottish Budget 2025-2026 on 4 December 2024.
The draft budget proposes various tax measures, including the extension of 100% rate relief for hospitality properties located on islands and in designated remote areas, as well as a 40% tax relief for mainland hospitality businesses and grassroots music venues. This support is capped at EUR 110,000 per business.
The 2025-26 budget also introduces legislation to increase the standard and lower rates of Scottish Landfill Tax (SLfT) from 1 April 2025 to align with the announced UK Landfill Tax rates for 2025-26.
This is consistent with previous Scottish Government policy and addresses the risk that lower rates could result in the movement of waste to Scotland from the rest of the UK. It also takes account of the extent to which the rate of inflation in recent years has outstripped the annual increases in SLfT rates.
