Scotland’s Budget has passed though Holyrood, which includes investment in affordable housing but has saddled landlords with higher taxes.
Some £7billion is being spent on infrastructure like affordable housing, as well as the Heat in Buildings programme, which aims to decarbonise all buildings from 2045.
However, landlords in Scotland are now having to pay an eye-watering 8% Land and Buildings Transaction Tax (stamp duty equivalent) surcharge, up from 6% – the highest rate across the UK.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Propertymark welcomes the investment in affordable housing and money for the Heat in Buildings programme to help more people install clean heat and energy efficiency measures in their homes.
“However, we do not agree with the Scottish government’s decision, through the Budget process, to increase taxes when purchasing buy-to-let property from 6% to 8%.
“The Scottish government’s Budget has failed to implement policies that can help meet the demand for private rented property and with Scotland’s landlord taxes now the highest in the UK, this will do nothing to tackle Scotland’s housing emergency and reduce rents for tenants.”
The Budget also commits to spending £15billion on local councils, as well as £2billion on colleges, universities and the wider skills system.
Shona Robison, finance secretary, said: “I am pleased that Parliament has approved the Scottish government’s Budget – confirming plans to invest in public services, lift children out of poverty, act in the face of the climate emergency and support jobs and economic growth.
“We are delivering a universal winter heating payment for the elderly, providing record funding for local government and increasing investment in affordable housing.”
The Scottish Conservative Party was against the Budget bill, though the Scottish National Party had the support of the Greens, Liberal Democrats and Alba.
The Tories particularly opposed changes to income tax, which could drive more people into higher tax brackets because they are not being raised in line with increasese in pay.
The basic tax band – a tax of 20% on earnings between £14,876 and £26,561 – and the intermediate band – a tax of 21% on earnings between £26,562 and £43,662 – will rise by 3.5%.
