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Chamber

Meeting of the Parliament 31 January 2018

31 Jan 2018 · S5 · Meeting of the Parliament
Item of business
Budget (Scotland) (No 2) Bill: Stage 1
Fraser, Murdo Con Mid Scotland and Fife Watch on SPTV

You could have knocked me over with a feather when I heard the news a couple of hours ago. The ever-faithful Patrick Harvie has once again saved the Scottish National Party’s bacon; the always-willing Scottish Greens are there to do their masters’ bidding; the wholly owned subsidiary has had its orders from head office and, after the usual pretence of playing hardball, with choreography that the greatest showman would be proud of, it fell sweetly into line exactly as was planned all along.

The price for that, of course, will be paid by hard-working Scottish taxpayers—not the high earners, but families that are struggling to get by, with Mr Mackay’s hand in one pocket and Patrick Harvie’s in the other.

“The perception, if you are a talented person sitting in London, Manchester or Birmingham and Scotland wants to attract you, is that you may think Scotland is a high tax economy.”

Those are not my words, but the words of Sir Tom Hunter, one of Scotland’s leading business figures. Liz Cameron of the Scottish Chambers of Commerce put it this way:

“If Scottish businesses are taxed more and Scottish-based staff are taxed more, then that would not seem to be a situation designed to attract investment and grow Scotland’s economy.”

The SNP should listen to what Scottish business is telling it.

This budget can be summed up in four words: pay more, get less. It is a budget in which the SNP has broken its promise to the taxpayers of Scotland not to increase income tax for those paying the basic rate, and one that will nevertheless deliver cuts to services across Scotland. I need hardly remind members that the promise on income tax was made in the SNP manifesto in 2016, and has been repeated since then some 53 times over the past two years. Nicola Sturgeon said it 10 times, Derek Mackay said it at least 10 times, John Swinney said it at least five times—

In the same item of business

The Presiding Officer (Ken Macintosh) NPA
We move to the debate on motion S5M-10183, in the name of Derek Mackay, on stage 1 of the Budget (Scotland) (No 2) Bill. 14:52
The Cabinet Secretary for Finance and the Constitution (Derek Mackay) SNP
I am delighted to lead this debate on the principles of the Budget (Scotland) (No 2) Bill. I welcome the Finance and Constitution Committee’s report on the d...
Murdo Fraser (Mid Scotland and Fife) (Con) Con
Will the cabinet secretary give way?
Derek Mackay SNP
Not at the moment. I have previously set out in detail why the local government settlement that we proposed was a fair one. However, I have also consistentl...
Murdo Fraser Con
In the light of the changes that the cabinet secretary proposes to make to income tax, what is the additional income tax liability of people in Scotland as a...
Derek Mackay SNP
As I have said repeatedly, a majority of people in Scotland—55 per cent of them—will pay less tax than they would if they lived elsewhere in the UK, and 70 p...
James Kelly (Glasgow) (Lab) Lab
What measures will the cabinet secretary announce to tackle the scandalous situation whereby 260,000 children are living in poverty?
Derek Mackay SNP
The first thing that I will do is present to the Scottish Parliament a coherent and competent budget that will invest more in housing and support, do more to...
Murdo Fraser (Mid Scotland and Fife) (Con) Con
You could have knocked me over with a feather when I heard the news a couple of hours ago. The ever-faithful Patrick Harvie has once again saved the Scottish...
Derek Mackay SNP
Will the member take an intervention?
Murdo Fraser Con
Let me complete the list and then I will give way to Mr Mackay. It was repeated by Keith Brown, Humza Yousaf, Maree Todd, James Dornan, Ivan McKee, Gillian ...
Derek Mackay SNP
Where do the Tories propose to cut £556 million, which would be the consequence of following their tax proposals?
Murdo Fraser Con
It is dead simple. We would cut out the waste and the vanity projects and we would grow the Scottish economy. That is what the SNP should be doing. At the s...
Murdo Fraser Con
I have given way once already and I need to make progress. It is on the record and the finance secretary can read it for himself. Any cuts that are being ...
James Kelly (Glasgow) (Lab) Lab
Let me say at the outset that this budget falls well short of what is required. There is a lack of investment in public services. It does not properly fund f...
Derek Mackay SNP
Will the member take an intervention?
James Kelly Lab
No, thank you, not at this time. Labour’s plan would protect lifeline services, invest £100 million in the NHS, increase child benefit by £5 for every child...
Derek Mackay SNP
Those proposals are predicated largely on an income tax policy. To what extent was behavioural change taken into account in arriving at that income tax policy?
James Kelly Lab
We worked on that policy with the experts in the Scottish Parliament information centre. The fundamental difference between our policy and Mr Mackay’s policy...
Derek Mackay SNP
Will the member take an intervention?
James Kelly Lab
No, thank you. It is more than enough to fill the Queen Elizabeth university hospital. That is a crisis for the NHS and that is why Labour has pledged speci...
Clare Adamson (Motherwell and Wishaw) (SNP) SNP
Will the member take an intervention?
James Kelly Lab
No, thank you. Despite the announcements that have been made on public sector pay, there has been a lack of transparency on the issue. Mr Mackay has not bee...
Derek Mackay SNP
Will the member give way?
James Kelly Lab
No, thank you. Councils have been left in a situation in which Mr Mackay has announced a policy but has not provided any money to fund it. The approach of ...
Christina McKelvie (Hamilton, Larkhall and Stonehouse) (SNP) SNP
Will the member give way?
James Kelly Lab
No, thank you. Labour’s £960 million investment plan is a progressive plan that tackles the issues that are afoot in this country. It deals with the lack of...
The Deputy Presiding Officer SNP
I call Bruce Crawford to speak on behalf of the Finance and Constitution Committee. 15:22
Bruce Crawford (Stirling) (SNP) SNP
There will be a bit of a change of tone during my speech on behalf of the Finance and Constitution Committee, but I am sure that normality will resume once I...
The Deputy Presiding Officer (Linda Fabiani) SNP
We move to the open debate. There is a little leeway for interventions. 15:30