Maintaining the current level of mortgage interest tax relief, rather than cutting it, was the only material change the Assembly made to the draft Budget published by the Policy & Resources Committee a month ago.
Earlier this week Deputies rejected an alternative plan to freeze spending at 2025 levels, which would have stripped £27m. out of the Budget proposed by P&R.
The key Budget measures approved included:
- Revenue income of £768m. from taxes, fees and other charges
- Revenue spending of £749m., an increase of inflation plus 1%
- Efficiency savings target of £4m.
- Personal income tax allowance of £15,200, up by £600
- Increases above the expected rate of inflation to domestic and commercial TRP, duty on motor fuel and tobacco and vehicle first registration duty, and an inflation-only increase to duty on alcohol
- A new duty on vaping liquid
- Scrapping additional document duty on the purchase of second homes
- About £17m. of additional spending in response to demand for existing services, about half of which relates to health and social care
The States also agreed proposals from the Employment & Social Security Committee to increase non-contributory benefits, such as income support, severe disability benefit and family allowance.
Most benefits will increase by 3.7% from January, but winter fuel allowance will go up by 4.3% immediately.
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