London Daily

Focus on the big picture.
Friday, Feb 13, 2026

Tax and benefits system 'more progressive in Scotland than rest of UK'

Tax and benefits system 'more progressive in Scotland than rest of UK'

By April, the poorest 10% of Scottish households are set to have incomes £580 per year higher than they would under the system in England and Wales.
The tax and benefits system in Scotland is more progressive than elsewhere in Britain, a report has said.

The Institute for Fiscal Studies think tank said that, by April, the poorest 10% of Scottish households are set to have incomes £580 (4.6%) per year higher than they would under the system in England and Wales.

Tax and benefit measures introduced north of the border since 2017 have reduced average household incomes by £210 (0.5%).

Later on Thursday, MSPs will vote on the proposed Scottish tax bands for the next financial year, which would increase taxes for higher earners.

The IFS said policies introduced over the last few years, such as changes to the benefits system, have particularly increased the incomes of poorer families with children.

Amongst the poorest 30%, Scottish reforms are set to raise the incomes of households with children by around £2,000 per year on average, the IFS said.

The new Adult Disability Payment is forecast to increase disability benefit spending by around a fifth when it is rolled out.

Research economist Tom Wernham said: "The Scottish government has used devolved income tax and benefit policy to make the system more progressive, as well as to raise more revenue to fund public services.

"These changes imply big increases in income for poorer households with children.

"But to fund their policies they are increasingly relying on taxing higher earners."

"With this group in particular, there is a risk that higher taxes will incentivise tax avoidance efforts, such as converting income into dividends - to which Scottish tax rates don't apply - or even migrating across the border.

"Most of the additional revenue from raising the additional rate to 45p is set to be lost due to responses such as these - suggesting there is a limit to how much further this strategy can be pushed.

"If the Scottish government does want to raise more revenue from richer households, it may need to turn to other taxes under its control, such as council tax."
Newsletter

Related Articles

0:00
0:00
Close
Peter Mandelson Asked to Testify Before US Congress Over Jeffrey Epstein Links
UK Green Party Considering Proposal to Legalize Heroin for an Inclusive Society
SpaceX's New Vision: Lunar City Takes Precedence Over Mars Colonization
OpenAI and DeepCent Superintelligence Race: Artificial General Intelligence and AI Agents as a National Security Arms Race
Document Suggests Prince Andrew Shared UK Briefing on Afghan Investment Opportunities with Jeffrey Epstein
We will protect them from the digital Wild West.’ Another country will ban social media for under-16s
McDonald's Shortens Breakfast Hours in Australia Due to Egg Shortage
Heineken announces cut of 6,000 jobs due to declining beer demand
Beijing Brands UK Hong Kong Visa Expansion ‘Despicable and Reprehensible’ After Jimmy Lai Sentencing
Tesco Chief Warns UK Is ‘Sleepwalking’ Toward a Joblessness Crisis
Trump’s ‘Act of Great Stupidity’ Comment on UK Chagos Deal Reverberates Through Diplomacy and Strategy
New U.S. filings say Jeffrey Epstein repaid Les Wexner one hundred million dollars after theft allegation
Commerce Secretary Howard Lutnick acknowledges 2012 visit to Jeffrey Epstein’s private island as lawmakers scrutinise past ties
Helsing and Stark Defence loitering-munition drones and Germany’s race to industrialise battlefield autonomy
UK orders deletion of Courtsdesk court-data archive, reigniting the fight over who controls public justice records
UK Police Review Fresh Claims Involving Prince Andrew as Senior Royals Respond to Epstein Files
Keir Starmer’s Premiership Faces Unprecedented Strain as Epstein Fallout Deepens
Starmer Vows to Stay in Office as UK Government Faces Turmoil After Epstein Fallout
China and UK Signal Tentative Reset with Commitment to Steadier, Professionally Managed Relations
UK Confirms Imminent Increase in ETA Fee to £20 as Entry Rules Tighten
UK Signals Possible Seizure of Russia-Linked ‘Shadow Fleet’ Tanker in Escalation of Sanctions Enforcement
Epstein Scandal Piles Unprecedented Pressure on UK Prime Minister Keir Starmer’s Leadership
UK’s ‘Most Romantic Village’ Celebrates Valentine’s Day and Explores the Festival’s Rich History
The Implications of Expanding Voting Rights to Non-EU Foreign Residents in France
Ghislaine Maxwell to Testify Before US Congress on February 9
Al.com Acquired by Crypto.com Founder for $70 Million
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
US and Iran to Begin Nuclear Talks in Oman
Winklevoss-Led Gemini to Slash a Quarter of Jobs and Exit European and Australian Markets
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
NASA allows astronauts to take smartphones on upcoming missions to capture special moments.
Trump administration to launch TrumpRx.gov for direct drug purchases
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Epstein Case Documents Reignite Global Scrutiny of Political and Business Elites
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
UK Royal Family Faces Intensifying Strain as Epstein-Linked Revelations Rock the Institution
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
Tech Mega-Donors Power Trump-Aligned Fundraising Surge to $429 Million Ahead of 2026 Midterms
UK Pharma Watchdog Rules Sanofi Breached Industry Code With RSV Vaccine Claims Against Pfizer
Melania Documentary Opens Modestly in UK with Mixed Global Box Office Performance
Starmer Arrives in Shanghai to Promote British Trade and Investment
Harry Styles, Anthony Joshua and Premier League Stars Among UK’s Top Taxpayers
New Epstein Files Include Images of Former Prince Andrew Kneeling Over Unidentified Woman
Starmer Urges Former Prince Andrew to Testify Before US Congress About Epstein Ties
×