MSPs set to back tax-rising budget amid calls for more cash for councils

The first stage vote takes place at Holyrood today

Author: Rob WallerPublished 2nd Feb 2023

MSPs are being urged to vote for what Deputy First Minister John Swinney is calling "meaningful and progressive" tax and spending plans ahead of the first debate on the budget.

The draft budget was unveiled in December against the backdrop of growing economic uncertainty, high inflation and spiralling costs.

The budget would 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.

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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% at a cost of £420 million.

There has also been a wrangle over local authority funding, with Mr Swinney announcing a £550 million cash terms increase in the draft budget, which councils have said could be as low as £71 million once government ring-fenced initiatives 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.

Scottish Green support

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.

Ministers were urged to drop plans for the national care service - a bid to centralise social care in a similar way to the NHS.

Plans for the service have been under attack in recent months due to a lack of clarity over how much it will cost - with some opposition estimates claiming it could be as high as £1.3 billion.

National Care Service controversy

Scottish Tory finance spokeswoman Liz Smith said: "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."

Lib Dem economy spokesman Willie Rennie said that testing for primary ones should be scrapped along with the social care plans.

"A budget is about choices and priorities. People recognise that you cannot get something for nothing," he said.

"That's why Scottish Liberal Democrats are setting out where we think money should come from too.

"Ditching divisive and expensive plans for centralising care services, national testing of P1 pupils and further papers on breaking up the UK would free up hundreds of millions of pounds to invest in frontline services."

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