Scottish election 2026: How tax and welfare are shaping the vote

Scottish Election 2026: Tax and Welfare at the Heart of the Campaign

Traditionally, Scottish Parliament elections centered on education and healthcare services. However, this year’s vote is expected to highlight a new focal point: taxation and social security. With the Scottish National Party (SNP) leading the agenda since 2017, the debate has shifted to how these policies shape voters’ priorities.

The UK’s personal tax threshold stands at £12,570, exempting adults from income tax. Beyond this, England, Wales, and Northern Ireland use three distinct tax brackets. Scotland, in contrast, has implemented six tiers, altering the financial landscape for residents. This structure results in lower earners paying less tax than their UK counterparts, while middle and higher earners contribute more.

According to the Institute for Fiscal Studies (IFS), 55% of Scottish taxpayers earning up to £33,500 annually will see a modest financial gain compared to the rest of the UK. The difference, however, is limited to £40 yearly or 77p weekly. For the remaining 45%, the impact is more pronounced: someone making £50,000 pays an extra £1,500 in income tax, while those earning £125,000 face an increase of around £5,200.

Despite these disparities, the SNP argues its system is more progressive, aiming to reduce inequality. The party’s leadership in Edinburgh emphasizes that higher taxes on wealthier individuals can fund targeted support for lower-income families. Critics, though, point to abrupt tax rate increases that may discourage people from working harder or earning more, potentially slowing economic growth.

The Scottish Child Payment (SCP), introduced in 2021 by Nicola Sturgeon, exemplifies the SNP’s welfare focus. Initially set at £10 weekly per child under six, it has since risen to £28.20, with eligibility expanded to children under 15. John Swinney, the current First Minister, has pledged to raise the payment to £40 for families with infants under one year if the SNP secures the election.

Jenna Lindsay, who runs Cafe Continental in Gourock, Inverclyde, feels the tax debate is distant from daily struggles. “It’s full on,” she admits.

“You’re like, how am I working all this and I’ve got nothing to show for it? It’s hard.” “Probably just a