Scottish budget explained

John Swinney announced the draft budget Credit: ITV Border

The Finance Secretary, John Swinney, set out his budget for the coming year this afternoon, and there were a few surprises.

It was the first time ministers in the Scottish Parliament have been able to set rates in more than 300 years.

One key announcement was that a new tax is replacing stamp duty in Scotland from April 2015.

The changes mean:

  • No one will pay tax on the first £135,000 when buying a new house.

  • You'll pay 2% for homes worth between £135,000 and £250,000.

  • A 10% rate will apply from £250,000 to £1m.

  • The top rate of 12% will kick in for houses over £1m.

This is a step by step process, so if you bought a house worth more than £135,000, you'd only pay the higher rate of two percent on the value between £135,000 and £250,000.

That wasn't the only big announcement:

  • NHS funding will be increased to more than £12bn this year.

  • Council tax has been frozen for another year.

  • Councils and companies have a new tax to pay when they want to dispose of waste to landfill.