Scottish Budget and Cold Weather Payments

Money Box

BBC

Business

4.2 • 825 Ratings

🗓️ 14 January 2023

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

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Summary

We discuss this week's Scottish Budget, from income tax to benefits. Deputy First Minister John Swinney announced that everyone earning more than £43,662 in Scotland will have to pay more income tax next year. It's as the higher rate of tax increases from 41p to 42p in the pound in April, and the top rate from 46p to 47p. We'll get reaction to that from people in Glasgow and analysis from Emma Congreve an economist who is Deputy Director at the Fraser of Allander Institute in Strathclyde. This month, we've seen freezing temperatures which, for millions of households, have triggered Cold Weather Payments. These are paid to some people in low income households who get means-tested benefits to help pay their higher energy bills during a cold snap. Payments of £25 are made automatically when the average temperature in an area is recorded or forecast to be at zero degrees celcius or below for seven consecutive days. We discuss who's eligible and how it works.

Interest rates rose again this week for the ninth time in a row - from 3% to 3.5%, its highest level for 14 years. The decision will increase monthly mortgage payments for some homeowners at a time when many people are struggling with all the other rises in the cost of living. The Bank of England predicted this week that people with mortgages who need to refinance next year to a new fixed rate will face an average monthly increase of around £250 - that's £3000 a year. What does that mean for you?

Presenter: Paul Lewis Reporter: Clare Worden and Dan Whitworth Researcher: Sandra Hardial Editor: Jess Quayle

(First broadcast 12noon, Saturday 17th December, 2022)

Transcript

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0:43.3	Hello, welcome to this Moneybox podcast.
0:46.3	As the freezing weather continues, cold weather payments of £25 are starting to be paid to millions of people on low incomes.
0:54.0	And the Bank of England raised
0:55.2	interest rates this week to the highest level since 2014. Should you fix your mortgage or not?
1:01.9	But first, the Scottish Government will raise some rates of income tax from April, as Deputy
1:06.9	First Minister John Swinney told the Scottish Parliament in his budget speech on Thursday.
1:12.0	I have decided to increase the higher and top rates of tax by one pence each to 42 pence and
1:20.8	47 pence respectively. As a result, we are asking all those earning more than £43,662 to pay an extra penny in income tax.
1:32.9	John Swinney also announced he would follow Westminster, though he didn't put it quite like that,
1:37.9	and freeze tax thresholds next year, apart from the threshold for the highest earners.
1:42.4	That will be reduced to match the lower level in the rest of the UK.
1:47.3	He also announced a big rise in the premium for people who buy second homes.
1:51.4	That will increase from 4% to 6% of the sale price.
1:56.0	That change began immediately and is now double the premium charged in England and Northern Ireland,
	...

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