Scottish Government to outline tax and spending plans in Holyrood Budget

Finance secretary Shona Robison will lay out the Scottish Government’s tax and spending plans in Parliament on Wednesday – the first since John Swinney took office.

The Budget comes against a backdrop of dire public finances, somewhat alleviated by a £3.4bn increase in the next financial year caused by the UK Government’s spending decisions outlined in October.

Scotland’s public spending watchdog has warned the NHS needs “urgent reform”, councils say they need more money to continue providing essential services, and unions want thousands more teachers in the country’s schools.

It has already been announced the Scottish Budget will allow for a devolved pension age winter heating payment next year, which will give all pensioners at least £100 and see those worse off receive up to £300.

Scotland

No clear plan for Scotland’s NHS and ‘urgent reform’ needed

Scotland’s public spending watchdog warned ‘difficult decisions’ and urgent reform was needed.

As the SNP is in a minority in the Scottish Parliament, it will need to seek help from others in passing the annual Budget Bill.

A deal is most likely to be struck with the Scottish Greens – the SNP’s former coalition partners and previous partners in multiple budgets – or the Scottish Liberal Democrats

Scotland

Every pensioner in Scotland to get winter heating payment next year

Universal payments to all pensioners were axed in Scotland after UK Chancellor Rachel Reeves announced the cut south of the border.

Speaking ahead of her Budget announcement to Holyrood, Robison said the investment in the plans will result in more jobs and “putting more money into people’s pockets”, as she turned her focus to the long term.

“This week we will publish a Budget which delivers progress for Scotland, by Scotland – laying the foundations for Scotland’s long-term success,” she said.

“The First Minister has made clear his focus on delivering on the priorities of people across Scotland – whether that is improving the NHS and other public services, growing our economy, tackling the climate emergency or eradicating child poverty.

“His first Budget will deliver progress on the issues people care about most.

“It is also a Budget for hope, that puts in place the investment that will set us up to win big in the years to come – creating more and better jobs, putting more money into people’s pockets and introducing a universal pension age winter heating payment.

“It will ensure that we create the conditions for every person in Scotland to thrive.”

The Scottish Conservatives said the SNP’s era of high tax and free spending must come to an end.

Shadow finance secretary Craig Hoy said: “The Scottish Budget is a chance for the SNP to set a new direction on tax and spend to deliver growth in the economy.

“For 17 years, the nationalists have failed Scotland by making people pay more and get less. Bills have increased while hundreds of millions of pounds have been wasted and public services have declined sharply.

“The SNP’s era of high tax, free spending must come to an end. It’s time for a common sense budget that helps workers and businesses, not another left-wing deal that hammers households.

“The SNP’s economic mismanagement has held Scotland back and reduced the money available to improve public services.”

Meanwhile, Scottish Labour said it would rather fight an early Scottish election than subject Scots to a budget that isn’t fit for purpose.

The party urged the SNP to make use of the record block grant delivered by the UK Labour government and invest in reforming overstretched public services.

Scottish Labour finance spokesperson Michael Marra said: “This budget is an opportunity to turn the page on 17 years of SNP failure – anything else will not do.

“Every single institution in Scotland has been left weaker by SNP mismanagement and waste.

“Our NHS is dangerously overstretched, with almost one in six Scots stuck on an NHS waiting list – but the SNP has no plan to fix this mess.

“Our education system is falling down the international league tables, our justice system is in chaos and trust in public institutions is collapsing.

“More of the same will not cut it – Labour has delivered record levels of funding for Scotland and the SNP must use it to deliver a genuine change in direction.

“Scottish Labour will fight an election before backing a bad budget and subjecting Scots to another year of SNP misery.”

The Scottish Hospitality Group (SHG) called on the Scottish Government to “do the right thing” and support the sector.

It has demanded the Scottish Government to reduce the business rates poundage to 35p for all licensed hospitality premises without a cap.

The trade body, which represents hundreds of large and small hospitality businesses across Scotland, said such a change would help support the sector and boost economic growth.

More than 400 business leaders recently signed SHG’s open letter backing the change.

Scottish Hospitality Group director Stephen Montgomery said: “Restaurants, hotels and pubs are the lifeblood of our communities, but the current business rates system unfairly penalises Scotland’s hospitality sector and is not fit for purpose.

“That is why we need to see the Scottish Government do the right thing and deliver urgent rates relief in the budget today by reducing the poundage to 35p without a cap, which will help all licensed hospitality.

“As our open letter signed by more than 400 business leaders showed, such a change is overwhelmingly backed by the hospitality sector and has the support of some of Scotland’s largest employers, as well as the wider Scottish public.”