The IFS Scottish Budget Report: 2024-2025

The Scottish Government's Budget for 2024-25 takes place at a time of particular uncertainty about the future funding environment. UK government spending plans both for the coming year and for later years seem likely to be topped up, but when and by how much is unclear. The current UK government wants to announce tax cuts before the upcoming general election, but history tells us that we should not be surprised if taxes were to rise post-election. And the performance of Scotland's devolved tax revenues - in particular given recent and planned tax policy changes - is uncertain. Taken together, these factors make the task of planning Scottish tax and spending decisions particularly challenging - an issue discussed in an IFS comment published alongside this report (Phillips, 2024).