The SNP and Greens are facing intense criticism over the Holyrood budget for 2024/25, as the governing parties prepare to cut spending on housing and hike income taxes.
MSPs will vote today on the legislation underpinning the £55billion package, which the opposition say will be “damaging and chaotic” for public services.
The budget includes a £180m cut to the affordable housebuilding programme, with the finance diverted to the Scottish National Investment Bank instead.
The budget also creates a sixth income tax band, an ‘advanced’ rate of 45% on earnings between £75,000 and £125,140, with the top rate raised from 47% to 48% above that.
England and Wales have three income tax bands.
The changes mean Scots earning more than £28,500 will be worse off than their counterparts south of the border from April, with £1500 more tax on a salary of £50,000 and £3,300 more on a salary of £100,000.
The budget also includes £147m to freeze the council tax in 2024/25, to help local authorities avoid a 5% rise, plus a last-minute £62.7m for councils backing a freeze.
The council umbrella body Cosla last night criticised finance secretary Shona Robison for trying to make the second tranche of money contingent on a freeze, as local authorities are supposed to be autonomous and have their own democratic mandates.
Ahead of the crucial Stage 3 vote, Scottish Labour finance spokesman Michael Marra said: “This latest damaging and chaotic SNP budget will devastate public services and fails the people of Scotland.
"From cutting cost-of-living support during the cost-of-living crisis to slashing the housing budget during a homelessness crisis, it is clear that the SNP’s priorities are not those of the people in Scotland.
“This budget will hamper growth, damage public services and fan the flames of inequality in our country. This incompetence must end. The SNP want you to pay more for less.”
Scottish Tory MSP Liz Smith said the” SNP tax-and-axe budget” was economically illiterate.
She said: “Instead of aiming for growth, reducing the tax burden, supporting councils and local services and bringing in public sector reform, the SNP and their anti-growth Green allies are headed full-tilt in the opposite direction.
“This budget… will hinder growth, not promote it. As many experts have warned, that means the SNP’s financial mismanagement will make it impossible to fund essential services.”
Scottish Liberal Democrat leader Alex Cole-Hamilton said his party would not vote : “Scottish Liberal Democrats cannot vote for a budget that “takes an axe to public services”.
He said: “This budget drives a coach and horses through the pretence the Green party cares about the housing emergency. Cutting funding for housing means less money in people’s pockets and more people relying on emergency council services.
“Cutting funding for green jobs will starve us of the skills needed to kickstart growth and leave Scotland at the back of the race for the jobs and industries of the future.
“I am baffled that the Green party are enthusiastically signed up to vote for these cuts.”
Ms Robison responded: “In the face of a deeply challenging financial situation, caused in large part by the UK Government’s failure to invest in public services with its Autumn Statement, the Scottish Budget targets funding towards supporting public services, growing the economy and tackling poverty.
“This includes £13.2bn for frontline NHS boards, £6.3bn for social security benefits and record funding of over £14bn for local government.
“Scotland’s progressive income tax system is forecast to raise £1.5 billion more for public services than if we had followed the UK Government’s tax plans. Under our proposals most Scottish taxpayers will still pay less than those elsewhere in the UK.”
Green MSP Ross Greer MSP added: “Despite Westminster’s disastrous underfunding of Scotland, we have used the limited powers and resources available to us to make sure this budget protects people and planet.
“I am proud that we are funding this through by far the most progressive tax system anywhere in the UK. Thanks to tax changes delivered by the Scottish Greens, an extra £1.5bn will go into our NHS and other vital public services.”
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