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<p>The Government is committed to keeping taxes low to support working people to keep
more of what they earn and to encourage individuals to progress.</p><p> </p><p>This
is why the Government met its commitment to raise the higher rate threshold to £50,000,
one year early. This has ensured that nearly 1 million fewer people pay the higher
rate of tax compared to 2015-16.</p><p> </p><p>Decisions on the Higher Rate Threshold
and the National Insurance Contributions (NICs)s Upper Earnings Limit and Upper Profits
Limit are taken by the Chancellor at fiscal events.</p><p> </p><p>The mechanism through
which the changes to income tax policy affect the Scottish Government’s block grant
are set out in the Scottish Government’s Fiscal Framework. When the UK Governments
increases the Higher Rate Threshold, the Scottish Government receives an increase
to their block grant commensurate to the Higher Rate Threshold increase. National
Insurance Contributions are reserved to the UK government, and therefore any changes
to NICs do not affect the Scottish Government’s block grant.</p>
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