JOHN Swinney has been urged to halt the Scottish Government’s “discredited” proposals to centralise adult social care, as the Deputy First Minister pointed to his “meaningful and progressive” tax and spending plans ahead of the first debate on the Budget.
The draft Budget, published in December, set out plans to raise taxes on higher earners, with the top rate threshold reducing from £150,000 to £125,140, as well as an increase of 1p to the higher and top rates to 42p and 47p respectively.
Business rates, the Deputy First Minister also announced, would be frozen for the forthcoming year under the proposals.
Mr Swinney also announced plans to uprate all devolved Scottish benefits by the November inflation rate of 10.1 per cent, at a cost of £420 million.
The Scottish Government has faced criticism over local council funding, with Mr Swinney announcing a £550m cash terms increase in the draft Budget, which authorities have claimed could be as low as £71 million once government ring-fenced priorities are accounted for.
An announcement is also expected soon from Education Secretary Shirley-Anne Somerville that would block councils from cutting teacher numbers in a bid to save cash.
Should there be a National care Service?
But the Scottish Conservatives have called for funding set aside to set up the National Care Service to be re-directed to local councils
Ahead of today’s budget debate, Tory finance spokesperson Liz Smith has also called for the Deputy First Minister to match the rates relief being given in England and Wales – extending it to retail, hospitality and leisure businesses. The Scottish Government has received funding from UK ministers to do so.
Ms Smith said: “The difficult financial climate has been made much more challenging because of years of poor choices made by the SNP Government.
“It’s time for John Swinney to ditch the SNP’s discredited and unaffordable plans for a National Care Service, and instead give that money to councils who are better placed to deploy it on local social care provision.
“Scotland’s councils have been systematically underfunded for years and it’s time the SNP offered a fair funding deal for local authorities.
“They should also pass on the Barnett Consequentials they have received from the UK Government to struggling local shops and pubs to give them the rates relief their counterparts elsewhere in the UK receive.
“Of course, John Swinney has some tough decisions to make but his position is stronger than he makes out, thanks to record funding from the UK Government.”
She added: “Although he claims that inflation and the Westminster Government are responsible for the cuts he has imposed, the Fraser of Allander Institute pointed out that the rise in the UK block grant cancels out the inflationary pressures of which he complained.
“John Swinney should look closer to home if he wants to point the finger. It’s the SNP that squandered enormous sums of public money on the likes of the ferries fiasco, BiFab, Prestwick airport and the malicious Rangers prosecution.
“He should be tackling the tax gap between Scotland and the rest of the UK, which hammers Scots with higher taxes, stifles growth and puts off the skilled workers that Scotland desperately needs to attract from coming here.
“If John Swinney wants to avoid Scottish households being faced with a potential rise of up to 25% in council tax bills to cover the shortfall created by his party’s underfunding of local government, he must urgently change course.”
READ MORE: John Swinney urged to drop ‘devastating cuts’ for affordable homes
Mr Swinney said his draft budget contained “fair and ambitious spending plans” that “have been developed during one of the most challenging financial environments since devolution”.
He said: “To govern is to choose and we have chosen a different, distinctive path that commits substantial resources to protect the most vulnerable from the impact of decisions made by the UK Government.
“We are asking people to contribute to a fairer society that provides benefits such as free prescriptions, free access to higher education and concessionary travel not available in other parts of the UK.
“The progressive choices we propose on Scottish income tax also mean that next year the Scottish Government can direct additional investment towards our NHS.”
Mr Swinney added: “That investment will help drive forward our recovery plan, improve primary health care services and help reduce the harms associated with drugs and alcohol.”
Mr Swinney added: “Our spending plans will help ensure we can deliver a net zero future achieved through sustainable economic growth.
“We are investing £1.4 billion to maintain, improve and decarbonise Scotland’s rail network and almost £467 million on peatland restoration.
READ MORE: Scottish ministers 'firefighting' on public finances, MSPs warn
“By doubling the budget for the next phase of the Just Transition Fund to £50 million, we are helping regional economies in the north east and Moray move away from the industries contributing to the climate emergency and diversify into others.
“This is a meaningful and progressive budget that delivers for the people of Scotland.”
Regardless of the level of support in opposition parties, the budget is likely to pass without the requirement for changes to secure votes as a result of the agreement between the Scottish Government and the Scottish Greens.
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