Questions emerge over SNP-Greens budget deal as MSPs back the plans

MSPs have formally passed Scotland’s budget at Holyrood after question marks emerged over the £173 million deal struck between the SNP and the Greens at Holyrood.

Kate Forbes welcomed the Budget being backed by MSPs

Finance Secretary Kate Forbes’ £34 billion spending plans for 2020/21 were passed by 65 votes to 54 at stage one, with the Tories, Labour and Lib Dems all voting against.

It came after a £173million agreement was reached with the Greens on Wednesday which will see free bus travel introduced for under 19s, as well as extra cash for local councils and sustainable travel schemes.

“I’m pleased that parliament has supported this budget at Stage 1 which will deliver certainty for vital public services, tackle the climate emergency and provide record investment for health and social care," Ms Forbes said afterwards.

“This budget will now deliver free bus travel for young people, £1.8 billion investment in low carbon projects, the child payment to lift children out of poverty and £15 billion for health and care services.

“I look forward to concluding the budget process next week when all parties should recognise the support it provides for local government, police, tackling climate change and supporting drug services and back this budget for Scotland,” .

But it came after a report by Holyrood researchers raised questions over how the agreement with the Greens was being paid for.

The new deal has been struck without any cuts to proposals for spending in other services.

“How will these additional funding commitments totalling £173 million be funded?” a blog the Scottish Parliament Information Service (SPICE) said.

“The letter outlining the terms of the deal provides only partial answers to this question.”

The Scottish Government has explained that £25 million of the increases would be covered by underspend, a further £50 million from the re-profiling of distribution of business rates and the remaining £98 million will come from anticipated income from the fossil fuel levy and expected Barnett consequentials as a result of the UK budget. However, the consequentials were believed to have been factor into the initial budget.

Gail McGregor of local government body COSLA welcomed the extra £95 million in the SNP-Greens deal.

“I welcome the cross-party support from all of the political parties who have recognised the vital role of Local Government in this year’s Budget and I want to acknowledge the work of the Green Party which has resulted in the Scottish Government moving in relation to our Revenue settlement," she said.

“However, Councils across Scotland still face significant budget pressures because of inflation and demand which this Budget doesn’t recognise. We are also left with a huge drop in our core Capital Budget. Councils will not be able to mitigate the impact these gaps will have on communities.”