Meeting of the Parliament 05 February 2020
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 questions about reconciliation and forecasting. However, the point remains that, in every budget over the past few years, the Conservatives have consistently taken the stance that they want to prioritise tax cuts for the highest earners. That remains a fact, and it is a fact that Murdo Fraser repeated in his opening speech.
That raises the question, with regard to balancing a budget, of where the money to pay for those tax cuts will come from, because they will inevitably mean a reduction in finance for our public services. At a time when there is economic challenge, which businesses tell us is a result of Brexit and other issues, there is a question of where those cuts would fall.
In contrast to that approach, we have prioritised helping the lowest earners and funding our public services. That is why 55 per cent of Scottish taxpayers are paying less income tax than they would if they lived elsewhere in the UK—that is a result of the policy decisions that this Government has made. In last year’s budget, we made choices that raised additional revenue to support our vital public services and our economy, and we will do the same again tomorrow.
The vast majority of businesses, as well as income tax payers, in Scotland already pay less than they would elsewhere in the UK. Therefore, the rhetoric that comes from the Conservatives about Scotland being the highest-taxed part of the UK is more damaging than the reality and the substance of the budget.
I will discuss briefly a number of other points that are related to the budget. This year, the Scottish Government is investing over £14 billion in health and care services. We have passed on every penny of health resource consequentials, and we will continue to do that. Ensuring that health spending in every part of Scotland is protected has been a priority of this Government, and that is why health spending is at a record high.
Murdo Fraser mentioned hospital parking. The irony is, of course, that it was this Government that abolished car parking charges at NHS-owned car parks, since when patients, visitors and staff have saved over £39 million. In a number of other areas, too, performance has consistently been at a higher level in Scotland than in the rest of the UK.
I am delighted that the budget that we will discuss tomorrow will be not a Conservative budget but an SNP Government budget that will ensure that, despite all the challenges and uncertainties that we face, most of which have been caused by the UK Government, we will continue to deliver on our vision of a successful Scotland that has health, prosperity and wellbeing at its heart while tackling some of the big challenges that we face.