Budgets are a lot like buses. After waiting around for a while, two come at once.
It might seem like we have only just collectively suffered through the misery of the Autumn Budget, but it is time for the Scottish Budget.
As the Scottish Budget can represent a departure from the Autumn Budget in some cases, it is best to understand how it will impact you.
How are businesses affected by the Scottish Budget?
The Autumn Budget left many small businesses out in the cold and while they are unlikely to be kept warm by the Scottish Budget, it has at least tossed them a jumper to put on.
A new business rates relief is aiming to reduce bills by 15 per cent for any businesses operating in retail, hospitality, and leisure that have a value up to £100,000.
There is a hard cap of £110,000 per business per year and the relief is set to come into effect from April 2026.
While not particularly groundbreaking in its ability to help small businesses tackle rising operational costs, it is at least more generous than what is afforded to businesses south of the border.
For businesses operating on or near the border, it could provide a slight competitive edge that allows Scottish businesses to endure more reliably than English ones.
However, it is expected that landlords are likely to benefit most from the relief, as they could see an opportunity to raise rents knowing that businesses have a little bit of extra cash lying around.
The Scottish Budget stopped short of doing much else to help businesses, as it seems like Governments across the UK lack object permanence when it comes to entrepreneurs.
The plans to address some of the cost-of-living concerns could impact businesses in a roundabout way.
The new £40 a week that is being given to parents with a child under one could help struggling families have a little extra spending power, as could the adjustments to Income Tax that could see low-earning Scottish workers pay less in tax than their English counterparts.
That is only expected to be around £40 a year, so probably not worth betting the farm on and high earners are still set to pay substantially more in tax than those across the border.
The Government claims this will see better-funded public services in Scotland, but whether that helps to reanimate high streets remains to be seen.
How can I prepare for the changes coming from the Scottish Budget?
Seeking professional financial advice is a good place to start.
For business owners, you need to understand whether the new rates will impact your business and how much of an effect this will actually have.
The other concerning detail to emerge from the Scottish Budget is a more far-reaching form of the mansion tax that was introduced in the Autumn Budget.
There are plans to create two new council tax bands for properties worth over £1 million that will come into effect in 2028.
It is currently not known what these bands will be or how punitive they are for those whose properties have increased in value due to inflation or other factors that mean they might lack the expected spending power.
Ultimately, anyone hoping for a major departure from unpopular aspects of the Autumn Budget may find the Scottish Budget somewhat disappointing.
The real winners are set to be working families and the education sector, both of which stand to receive some extra financial support.
For everyone else, there is a need to keep powering through these economically challenging times.
