Scottish Budget set to pass first Holyrood hurdle amid opposition criticism

Shona Robison, the deputy first minister and finance secretary, said the plans are ‘rooted in fairness’

The Scottish Budget is set to pass its first hurdle at Holyrood today despite critics warning it will do “huge damage” to the economy and public services.

Shona Robison, the deputy first minister and finance secretary, said the plans were “rooted in fairness and the social contract we have built with the Scottish people”.

The proposals will see a new income tax band created for those earning more than £75,000, while the top rate will rise by 1p in the pound.

Shona Robison. Picture: Jeff J Mitchell/Getty Images

The Government said the Budget would deliver a £6.3 billion investment in social security, £13.2bn for frontline health boards, and increased funding for police and fire services.

However, the Institute for Fiscal Studies previously said spending on the NHS could drop by 0.7 per cent in real terms in the coming year, and accused ministers of giving a “misleading impression” of spending rises in key areas.

Local authority leaders have also criticised a planned council tax freeze and warned the funding settlement will see essential services cut.

Opposition parties are set to vote against the Budget, but the SNP-Green majority in Holyrood means it will pass its first stage today before being rubber-stamped later this month.

Scottish Conservative finance spokeswoman Liz Smith said: “It goes without saying that the Scottish Conservatives will vote against Shona Robison’s disastrous tax-and-axe budget, which has been almost universally condemned.

“As well as opposition parties, councils, business and unions, many within the SNP have also slammed these policies. Those MSPs must stand up and be counted, and vote against the damaging provisions of this deeply flawed budget, which would do huge damage to Scotland’s economy and public services.”

Labour finance spokesman Michael Marra said public services were “at breaking point”. He said: “In this Budget, the SNP-Green Government is asking Scots to pay more for less and using dodgy accounting to hide swingeing cuts.

“Scots cannot keep paying the price for SNP failure – we need change. Scottish Labour will oppose this damaging Budget, demand an end to SNP waste and mismanagement, and prioritise economic growth to fund public services.”

Scottish Liberal Democrat leader Alex Cole-Hamilton said: “Our party has always approached budget negotiations in good faith. In the past, we have backed budgets in exchange for progress on issues we care about, like support for mental health and inter-island ferry services. We are also realistic that we will not get 100 per cent of everything we want.

“However, on this occasion, we cannot vote for a Budget that impoverishes councils and deals a hammer blow to everyone waiting for healthcare. Astonishingly, this is a Budget that delivers a housing cut in the midst of a housing crisis and will starve us of the skills and green jobs needed to kickstart growth.”

Ms Robison said: “I have been clear about the fiscal challenge that we face after the UK Government’s Autumn Statement delivered the worst-case scenario for Scotland’s finances and failed to invest in public services.

“In these circumstances, I have presented a budget rooted in fairness and the social contract we have built with the Scottish people. This is a Budget which puts our values into action, invests in the future, and will improve the lives of people across Scotland.”