Shona Robison, finance minister for the Scottish government, has set out her tax and spending plans for Scotland for 2025-26 with a commitment to a 3.5% hike in the two key tax thresholds affecting the majority of taxpayers.

The decision to increase thresholds was taken to offset the impact of the UK wide increase in employer’s national insurance contributions (NICs) from next April, which the Institute of Fiscal Studies (IFS) expects will hit employers directly as businesses pass on costs to staff and customers, Robison said.

From 6 April 2025, earners on the two lowest tax thresholds will see a standard increase of 3.5%, nearly twice the current rate of inflation.