MSPs back Scottish Government budget

READ MORE: Shona Robison denies 'punishing' councils with tax freeze conditions

In her opening speech, Ms Robison said she had been forced to make “difficult choices” because of ”the UK Government cutting Scotland’s budget.”

She told MSPs that the block grant had “fallen by 1.2% in real terms since 2022-23” while the Scottish Government’s capital spending power was “due to contract by almost 10% in real terms over five years.”

Ms Robison defended new tax hikes, and said keeping Scotland’s income tax bands and rates in line with the UK’s would lead to a “hammer blow of £1.5 billion of cuts.”

The minister also told MSPs that there was a “danger to Scotland’s public finances from the decisions of the UK Government at the Spring Budget next week.”

She said: “We are in the absurd position of finalising our budget plans for 2024/25 today – when in a week, large parts of it may be impacted by the choices of the UK Chancellor.

“My message to the Chancellor could not be clearer - prioritise investment in public spending and infrastructure over further tax cuts.”

One surprising announcement from the Deputy First Minister was the promise to “begin constructive engagement” with Scotland’s councils “on the request to consider powers of general competence.”

That effectively means local authorities having the power to do anything an individual can do provided it is not prohibited by other legislation..

“Any new powers must balance fiscal responsibility and risk against the potential for positive outcomes,” Ms Robison said. “And should therefore be explored in the context of the fiscal framework which we remain committed to developing with Cosla.”

The SNP minister said the budget was “true to our progressive values and what it means to call Scotland home: protecting the vulnerable, investing in services, growing our economy, and tackling the climate emergency.”

But Jamie Livingstone, Head of Oxfam Scotland, said the gains made through the changes to income tax had been “wasted” because of the council tax freeze.

He said: “This deeply disappointing and disjointed Budget risks bringing to a screeching halt – and if anything, throwing into reverse – action to tackle poverty.

“The potentially poverty-busting gains made through fair tncome tax increases for the richer are being wasted on a simultaneous backhander to the better off through the intended council tax freeze. It's an alarmingly muddled misstep that's fundamentally flawed.

“Scottish Ministers must stop stumbling from one short-term, short-sighted budget to the next.”

READ MORE: Shona Robison defends 'priority' council tax freeze

John Dickie, from the Child Poverty Action Group (CPAG) in Scotland, John Dickie, said the Budget "amounts to, at best, a stalling of the very real recent progress made by the Scottish government.”

He added: "Child poverty is a brake on our economy – we need to release that brake by investing in the social security and public service infrastructure needed to prevent it. It’s absolutely right that those of us who have the means contribute more through tax to help fund that investment."

Professor Sinclair said: "Unfortunately, some of the spending decisions in this budget will move Scotland further from where we need to be to reduce poverty."

He added: "The Scottish Government has rightly prioritised Scotland’s social security safety net, but funding cuts to services that support people entering and progressing at work, alongside significant reductions to Scotland’s affordable housing programme, are just two areas where progress on reducing poverty is at risk.

“We need to see the Scottish Government, and other parties, work together to put in place the policies needed to free people from poverty and commit resources to match this ambition.”

But David Lonsdale, the Director of the Scottish Retail Consortium warned that higher taxes "for some" would "leave pay packets lighter and dent consumer spending."

“The way to increase government revenue is to grow the economy. That is best delivered by a balanced coherent approach which encourages private sector investment and consumer spending," he added.

Councillor Katie Hagmann, Cosla's Resources Spokesperson said it was "not a good Budget for Scottish local government or communities that we represent."

“If we are serious about tackling inequalities in Scotland, investing in prevention, and promoting inclusive growth we must be properly resourced. Local government holds the key to deliver the essential front-line services that enables this to happen," she added.

In Holyrood, the Scottish Conservative shadow finance secretary Liz Smith said the budget would do “nothing to stimulate jobs, investment, economic growth or encourage aspiration.”

She said SNP “mismanagement” meant that “Scots will face savage cuts while paying more.”

The Tory MSP said the budget process has exposed “the fundamental divide in Scottish politics.”

On the one side were those “who believe that the policies to stimulate jobs, investment, economic growth, and encourage aspiration should be the top priority.”

While on the other were those “principally ministers in the Scottish Government and their bedfellows, the Greens” who believe that “the so called social contract between government and the public should be the priority, because they believe that this is the best way to improve the delivery of public services and address our social ills.”

Labour’s Michael Marra described it as “a budget based on the economically and fiscally illiterate assumption that income tax can be used to plug the hole left by the SNP's failure to grow the economy.”

“And it is a budget where Scots are going to pay much more and get much less in return,” he added. “We know that the public finances are constrained by an economy that is not working and two governments that have wasted billions while families count every pound.”

READ MORE: SNP has broken social contract between government and people

Scottish Green MSP Ross Greer said his party would still back the budget, despite unhappiness at the council tax freeze. 

"It's clearly not what the Greens would have chosen," he said "It cannot happen again

"But we are not voting down a budget with £4.7 billion for climate, nature and £6 billion for Social Security, because we're unhappy with one policy."