Budget: Personal taxes
Income tax threshold dilemma for Mackay
The tax-free personal allowance will rise to £11,850 in April and the higher rate to £46,350, putting added pressure on the Scottish Finance Secretary Derek Mackay when he delivers his Budget next month.
The increase in the higher rate announced by Mr Hammond in March was not passed on to Scottish employees and this latest rise will pose a further dilemma for the Holyrood government.
Mr Hammond also announced a rise to the National Living Wage from April. It will be increased 4.4% from £7.50 an hour to £7.83 – giving full-time workers a further £600 pay increase.
Short-haul air passenger duty rates and long-haul economy rates are to be frozen, paid for by an increase on premium-class tickets and on private jets.