Meeting of the Parliament 14 December 2017
I would have thought that, following First Minister’s questions, Murdo Fraser would have had two hours to change his script, but he has failed to do so.
The biggest threat to Scotland’s economy—and to the UK’s economy—is the Tory party, with its economic mismanagement and mishandling. If Murdo Fraser wants to talk about the philosophy and economics of the Tories, it remains the case that, once again, they want to raise less and spend more, and that is just not possible.
We have provided a balanced budget. Murdo Fraser asks whether I will apologise. I am very proud of the budget, because it invests in the things that we hold dear and speaks to the kind of Scotland that we want to build. Murdo Fraser spoke about basic-rate taxpayers, but he should check the document: the basic rate has been frozen. As a matter of fact, 80 per cent of our basic-rate taxpayers will pay less next year, not more, and 55 per cent of taxpayers earning up to £26,000 will pay less tax than they would elsewhere in the UK. Therefore, for the majority of taxpayers, Scotland is the lowest-taxed part of the UK. Even more important, our using the tax system in a progressive fashion makes Scotland the fairest part of the United Kingdom, which is something to be proud of.
Members have quoted the Fraser of Allander institute, and I will happily do that as well. Murdo Fraser has mentioned capital spending—particularly financial transactions. The FAI has said that Scottish ministers are constrained in how those financial transactions can be used, so it remains the case that resource spending next year and for the next two years will go down, just it has over the past period, which will amount to a £2.6 billion reduction in Scotland’s resource budget.
I have done my homework, and I have another figure for Mr Fraser. I have established what would have been taken from Scotland’s front-line public services if I had followed Tory tax policies. I costed what the Tories told me to do on income tax, LBTT, council tax reform and the large business supplement, and I discovered that, in addition to the block grant reduction, following Tory tax policies would have reduced the resources available to front-line services by a further £501 million. Raising less and spending more cannot be done.
In the next hour, if I hear any Conservative member ask for more money for anything, I will point to the £0.5 billion reduction there would have been if I had followed their tax policies. I will not follow their tax policies; I will follow our policies, which will deliver fairness, social justice and a stronger economy.