MSPs to vote on Scottish government budget

MSPs will debate and vote on the Scottish government's draft budget on Tuesday afternoon.

Proposals for new 45% and 48% income tax bands for higher earners have already been passed by Holyrood after being announced by Finance Secretary Shona Robison in December.

First Minister Humza Yousaf said the budget would give more funding to health, education and the police.

Opposition parties have warned of cuts to spending in areas such as housing.

The measures in the £55bn annual budget include a "fully funded" council tax freeze.

Scotland's 32 local authorities have already been offered £147m as compensation, with an extra £62.7m for those that freeze council tax.

First Minister Humza Yousaf pledged in his speech to the SNP conference last October that council tax bills across Scotland would be frozen in 2024.

However, a failure to consult with council leaders before the announcement led to a dispute over funding between the Scottish government and local government body Cosla.

Argyll and Bute Council's Conservative, Lib Dem and independent coalition was the first to defy SNP ministers when it voted for a 10% rise last week - although other councils have so far stuck to the freeze.

"For those councils like Argyll and Bute, who I think have unjustifiably raised their council tax in the midst of a cost of living crisis, they will have to answer to their constituents," he said.

The top rate of tax, paid by those earning more than £125,000, will also rise from 47% to 48%.

It means Scotland will have six income tax bands from April while England and Wales have three.

Everyone earning over about £28,500 in Scotland will have to pay more tax than they would do if they earned the same amount south of the border, while those earning under that amount will pay slightly less.

The income tax plans were approved separately from the other budget proposals in a Scottish Parliament vote last week.

Other proposals include an increase the Scottish Child Payment from £25 to £26.70 from April and £1.5m for local authorities to cancel school meal debt.

Funding for NHS boards would rise by £550m - or 4.3% - and amounts to £13.2bn as part of an "above real terms" rise.

Ahead of the debate, the Scottish Conservatives said the budget was a "desperate attempt" to plug the hole in Scotland's finances.

Conservative finance spokeswoman Liz Smith said: "Virtually every business group, union, council and other stakeholder has condemned this budget.

"It will hammer Scottish workers, the majority of whom pay more tax than they would in the rest of the UK."

Scottish Labour finance spokesman Michael Marra said: "This latest damaging and chaotic SNP budget will devastate public services and fails the people of Scotland.

"From cutting cost-of-living support during the cost-of-living crisis to slashing the housing budget during a homelessness crisis, it is clear that the SNP's priorities are not those of the people in Scotland."

The finance secretary defended the draft budget proposals and council tax freeze ahead of the vote.

She said: "In the face of a deeply challenging financial situation, caused in large part by the UK government's failure to invest in public services with its Autumn Statement, the Scottish Budget targets funding towards supporting public services, growing the economy and tackling poverty.

"This includes £13.2bn for frontline NHS boards, £6.3bn for social security benefits and record funding of over £14bn for local government.

"Scotland's progressive income tax system is forecast to raise £1.5bn more for public services than if we had followed the UK government's tax plans. Under our proposals most Scottish taxpayers will still pay less than those elsewhere in the UK."