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Chamber

Meeting of the Parliament 05 February 2020

05 Feb 2020 · S5 · Meeting of the Parliament
Item of business
Tax and Public Spending
Fraser, Murdo Con Mid Scotland and Fife Watch on SPTV

I need to make some progress.

My colleagues will set out in more detail later in the debate our priorities for public services spending, but when it comes to the national health service, we want all Barnett consequentials that arise from increased health spending in England to be passed on to the NHS in Scotland. Within that envelope, we want a new hospital parking charges refund scheme, whereby the three hospitals in Scotland that still charge for parking—Glasgow royal infirmary, the Royal infirmary of Edinburgh, and Ninewells hospital—can offer refunds for hospital staff and develop a new scheme for protected groups who most need refunds, including disabled patients and sick children’s parents who stay overnight.

We also want an end to underfunding of NHS boards and delivery of NHS Scotland resource allocation committee funding parity.

In order to tackle one of our nation’s greatest public policy failures, we also want a dramatic increase in the number of drug-rehabilitation beds, to be funded by a new £15.4 million scheme to replace the 80 per cent cut in bed numbers under the SNP Government.

In recent years, local government has borne the brunt of budget cuts from the SNP Government, with a 7.6 per cent real-terms cut in revenue funding since 2013—the impact of which we see on communities across the country. We cannot have another year of cuts. As a minimum, core funding for local government needs to be increased in line with inflation, and all the additional extra commitments that have been placed on local councils, which total £497 million, should be funded in full, as should any new or additional commitments.

In relation to justice funding, we recently heard from the chief constable of his worries about cuts to Police Scotland’s budget. We are therefore asking for, as a minimum, an extra £50 million to protect 750 police officer posts.

We want revenue funding for higher education to be protected, at least in real terms, and we want a 2 per cent real-terms increase in capital funding for the sector.

In housing, we want an additional £10 million for expansion of the ending homelessness together fund. I say that on the day on which we have learned about the dramatic increase in the number of deaths of homeless people.

What I have set out in my speech and in our motion does not represent the totality of what we want from this budget; nor does it represent what a Conservative budget might look like. However, it sets out some of our priority areas, and those that we believe the Scottish Government should address, if it wants to win our support for its budget in the coming weeks.

Our package of proposals is not unrealistic, nor is it unduly radical; it represents a credible and affordable package that can be delivered within the overall financial envelope that is available to the Scottish Government. I hope that the Government will sit down and work with us in the weeks ahead to deliver a budget that prioritises growing the economy, expanding our tax revenues and supporting our vital services.

I move,

That the Parliament believes that there can be no justification for either further tax increases or further cuts to public spending and vital public services in the coming financial year, given analysis by the Fraser of Allander Institute, which shows that the UK block grant to the Scottish Government will increase by 2.1% in real terms from 2019-20 to 2020-21 as a result of increases in spending by the UK Government, and therefore calls on the Scottish Government to bring forward a Budget for the coming year that includes measures to help boost economic growth, with no widening of the tax gap between Scotland and the rest of the UK, a reduction in the Large Business Supplement for non-domestic rates to the same rate payable south of the border and protection of all existing reliefs, an investment of all health Barnett consequentials in the Scottish NHS, a scheme for the refund of hospital parking charges, a £15.4 million national drug rehabilitation bed fund and strategy, the delivery of NRAC funding parity, an increase in core funding for local government at least in line with inflation, a protection of revenue funding for higher education and a 2% real-terms increase in capital funding, an additional £50 million for the police to spend on protecting 750 officer roles, and an additional £10 million for the expansion of the Ending Homelessness Together Fund.

In the same item of business

The Deputy Presiding Officer (Christine Grahame) SNP
The next item of business is a debate on motion S5M-20716, in the name of Murdo Fraser, on there being no case for tax increases or further cuts to public sp...
Murdo Fraser (Mid Scotland and Fife) (Con) Con
Tomorrow, the Cabinet Secretary for Finance, Economy and Fair Work will set out his budget for the coming financial year. I think that we are all looking for...
The Cabinet Secretary for Finance, Economy and Fair Work (Derek Mackay) SNP
That is not true.
Murdo Fraser Con
If the finance secretary wants to intervene and explain to me why that is not true, I will give way.
Derek Mackay SNP
Does Murdo Fraser not understand—or, indeed, know—that the tax forecasts are made by the Scottish Fiscal Commission and not by the Scottish Government?
Murdo Fraser Con
I regret to tell the finance secretary that he is wrong, because the overestimate that I referred to was an estimate that was made by the Scottish Government...
John Mason (Glasgow Shettleston) (SNP) SNP
Does Murdo Fraser accept that it was not entirely the Government that was responsible for that estimate, and that Her Majesty’s Revenue and Customs did not k...
Murdo Fraser Con
John Mason makes a reasonable point in relation to the original forecast of tax revenues, but my point is that we now have much better information for the fo...
The Minister for Public Finance and Digital Economy (Kate Forbes) SNP
Will Murdo Fraser give way?
Murdo Fraser Con
No. Let me make some progress. Our proposals are costed at £777 million. I was therefore rather surprised to see that the Government’s amendment to our moti...
Kate Forbes SNP
Would Murdo Fraser be willing to publish his costings and associated lines?
Murdo Fraser Con
I would be absolutely delighted to do that. I will pass them across the chamber to the finance minister right now. The two areas that we view as priorities ...
Murdo Fraser Con
Mr Rennie caught my eye first, so I will give way to him.
Willie Rennie LD
I hear what Murdo Fraser is saying, which is why I am confused that his motion and budget proposals implicitly support the tax rise by refusing to reverse it...
Murdo Fraser Con
I am grateful for Willie Rennie’s intervention, because I was just going to make precisely that point. He has given me a cue to do that. I would dearly love...
Patrick Harvie Green
Will the member take an intervention?
Murdo Fraser Con
I need to make some progress. My colleagues will set out in more detail later in the debate our priorities for public services spending, but when it comes t...
The Deputy Presiding Officer SNP
I call Kate Forbes to speak to and move amendment S5M-20716.4. 15:33
The Minister for Public Finance and Digital Economy (Kate Forbes) SNP
Why have a budget debate once when you can have one three, four or five times? I am delighted to be here again to talk about the budget, which will be publis...
Murdo Fraser Con
On that point, would the minister accept the point that was made in evidence to the Finance and Constitution Committee last week by the Fraser of Allander in...
Kate Forbes SNP
It is worth reflecting on two points. The first is that, at the beginning of the process of the devolution of tax-raising powers, there will inevitably be qu...
Miles Briggs (Lothian) (Con) Con
Can the minister confirm that we will not see any more of the cuts that we have seen to drug and alcohol budgets from this SNP Government?
Kate Forbes SNP
I look forward to the member participating in tomorrow’s budget debate. I am, of course, not going to confirm anything that will be in the budget tomorrow, b...
Rhoda Grant (Highlands and Islands) (Lab) Lab
Austerity has caused untold harm to our communities. Surely, none of us came into politics to see a world in which families are dependent on food banks, maln...
Patrick Harvie Green
I am glad that the member agrees that a climate emergency budget is necessary and that public investment must be forthcoming. Is the Labour Party’s position ...
Rhoda Grant Lab
That question leads me nicely on to an intervention that we have proposed, which is for free bus travel for the under-25s. That not only would increase the u...
John Mason SNP
Will the member give way?
Rhoda Grant Lab
I am quite short of time and I wish to make a number of points. That approach has had an impact on lifeline services and, in turn, on the most vulnerable pe...
The Deputy Presiding Officer SNP
You must conclude and move your amendment, please.
Rhoda Grant Lab
I will move to my conclusion, Presiding Officer. Our budget requests are realistic—