Meeting of the Parliament (Hybrid) 25 February 2021
Murdo Fraser has picked up that there is a difference between Covid consequential funding and our own core settlement funding. Out of our core settlement funding, which is designed to cover recurring costs for services that local government is key to delivering, such as education, our non-Covid recurring settlement has not increased that much, but we have tried to protect the local government settlement. Over and above that, we have passed on to local government the additional Covid consequentials for the Scottish Government, including the £259 million for next year that I mentioned, which was topped up by £275 million to help with Covid pressures. Therefore, there is a distinction to be made between recurring and non-recurring funding.
We are also the only devolved Government to have committed to extend the Covid-19 reliefs into 2021-22, replacing £719 million of non-domestic rates income.
I recognise the contribution of our public sector workers, and the ambition on all sides of the chamber, including mine, to go further on public sector pay. The UK Government pay freeze has a direct and material impact on our funding position. A balance needs to be struck between fairly rewarding public sector workers, ensuring job security and maintaining employment levels across all sectors in the wider Scottish economy. Nevertheless, our progressive approach to pay maximises awards for the lowest paid, which recognises that the impacts of the pandemic have not been felt equally across our society, while ensuring that pay rises are affordable now and in the future.
All that clearly shows that this budget will deliver on the key priorities of creating jobs and supporting our sustainable recovery while responding to the health crisis and tackling inequality. I have responded to the asks from across the chamber, and I hope that we can all come together to pass the budget and deliver this important funding for the people of Scotland.
I move,
That the Parliament agrees to the general principles of the Budget (Scotland) (No.5) Bill.
15:07