In its annual Budget, the Scottish Government has emphasized its commitment to the green economy and the transition to net-zero by allocating funding for key areas, despite facing a significant budget shortfall. While much attention has been drawn to an income tax hike and council tax freeze, noteworthy announcements include increased funding for the offshore wind supply chain and adjustments to landfill tax rates.

Key highlights of the budget include:

1. Income Tax Hike: Income tax will increase to 45% for individuals earning between £75,000 and £125,140 annually. The change is expected to generate £18.8 billion in 2024-25.

2. Green Economy Funding: Scotland has allocated approximately £4.5 billion for transport, net-zero, and the just transition in 2024-25, with a focus on supporting its 2045 net-zero target and circular economy goals.

3. Impact of Changes in Westminster: The budget acknowledges that changes made in Westminster, including rollbacks on energy efficiency requirements and fossil fuel boiler phase-outs, have impacted Scotland's ability to fund the low-carbon transition for heat, buildings, and transport.

4. Offshore Wind Supply Chain: Funding for the offshore wind supply chain will see a significant increase, rising from £9.3 million in the current financial year to almost £67 million in 2024-25. The investment aims to stimulate private investment, support infrastructure, and create jobs critical to the growth of the offshore wind sector.

5. Landfill Tax Rates: Scotland's landfill tax rates will be adjusted, with the standard rate increasing from £102.10 to £103.70 per tonne and the lower rate rising from £3.25 to £3.30 per tonne, effective from April 1, 2024.

6. Energy Efficiency and Transport: Funding for energy efficiency is set at £358.2 million in 2024-25, slightly down from the current financial year. The active and low-carbon transport budget is expected to decrease from £348.6 million to £307.8 million.

7. Carbon Capture: The budget does not include provisions for carbon capture in 2024-25, citing uncertainty from the UK Government on timescales for supporting carbon capture, utilization, and storage clusters.

Scotland's commitment to supporting the green economy and offshore wind aligns with broader efforts to drive sustainability and address climate goals. The increased funding for the offshore wind supply chain reflects the country's pivotal role in the UK's target of achieving 50GW of offshore wind capacity by 2030.