Meeting of the Parliament 14 December 2016
I am trying to set out our understanding of that very point. By using the package of tax and revenues across the Scottish economy, we can have a more competitive economy. I encourage Murdo Fraser to pick up on the points that I am about to make.
Instead of taking Westminster’s path of offering substantial tax cuts for those who least need one, we are proposing to prioritise revenues and the protection of public services.
With regard to our existing powers, we remain committed to competitive business rates. A key part of our package to support enterprise is to give Scotland the most competitive business rates in the UK for our vital small and medium-sized enterprise base. The small business bonus scheme has already saved businesses more than £1 billion cumulatively, and next year it will be expanded to lift 100,000 premises out of business rates altogether. Tomorrow, the cabinet secretary will confirm further proposals for 2017, taking account of the revaluation, while an external review under Ken Barclay is exploring how rates might better reflect economic conditions and support investment and growth. We will respond swiftly when that review reports in the summer.
Our reforms to council tax, which build on the recommendations of the cross-party and cross-government commission on local tax reform, will protect household incomes, make local taxation fairer and ensure that local authorities continue to be properly funded while becoming more accountable.