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

Scottish election 2026: How tax and welfare are shaping the vote13 minutes agoShareSaveAdd as preferred on GoogleJames CookScotland editorBBCBBC Scotland went to Inverclyde to see how the issues were affecting peopleElections to the Scottish Parliament have always been about schools and hospitals but this time the vote will be about tax and welfare too.In recent years Scotland has struck out on a different path to the rest of the UK when it comes to income tax and social security.This shift began in 2017 but the difference has sharpened since the Scottish National Party won the last Holyrood election under Nicola Sturgeon in 2021.This year's poll, being held on Thursday 7 May, is an opportunity for voters to have their say on the direction Scotland has taken under the SNP and the alternative routes proposed by other parties.TaxationEvery adult in the UK has a personal allowance of £12,570 on which they don't pay any income tax.Above that, England, Wales and Northern Ireland have three different levels of tax but Scotland now has six.The result is that lower earners in Scotland pay slightly less tax than they would if they lived elsewhere in the UK while middle and higher earners pay significantly more. The Institute for Fiscal Studies (IFS) projects that 55% of income taxpayers in Scotland – those earning up to £33,500 per year – will be better off this financial year than people in the rest of the UK earning the same amount.But the tax advantage will amount to no more than £40 per year each (77p per week).The other 45% – those earning more than £33,500 – will take home less than their counterparts elsewhere in the UK, with someone on £50,000 paying about £1,500 more income tax per year in Scotland.This figure rises to about £5,200 for someone earning £125,000.The SNP government in Edinburgh presents this as a more progressive tax system which aims to redistribute wealth to tackle poverty in a nation where inequalities run deep.Some economists have challen...