Meeting of the Parliament (Hybrid) 09 March 2021
It is essential that we come together as a Parliament today to agree next year’s budget and deliver the certainty and stability that Scotland and its people, businesses and communities deserve. Throughout this budget process, I have worked with all parties in the chamber to build consensus and to deliver a budget that supports Scotland’s recovery from the Covid-19 pandemic.
I thank the Finance and Constitution Committee for its stage 1 report on the budget, which I responded to on 2 March. In particular, I recognise the outstanding contribution of Bruce Crawford, as both a committee convener and a member of this Parliament. I am sure that all members across the chamber will join me today to offer him our grateful thanks for all his service to this Parliament and our best wishes for the future. [Applause.]
The committee’s report recognises that the budget has been published in a period of continued economic and fiscal uncertainty. In a year like no other, the passage of the budget bill will have a profound effect on our economy and public services. Since I introduced the budget bill on 28 January, I have engaged with members openly and transparently on the funding that is available and the budget challenges that we face. I thank all parties for their constructive contributions to those discussions. I am pleased that the Scottish Government has reached agreements with the Scottish Green Party and the Scottish Liberal Democrats, which will secure the passage of this vital budget.
In addition to delivering on the spending measures that I have previously outlined to Parliament, as part of the agreement with the Scottish Greens, next year’s budget will deliver an additional £49.7 million for the phased roll-out of free school meals. That includes, from July 2021, the provision of free school meal holiday support to all children and young people who are currently eligible for free school meals on the basis of low income and, by August 2022, the universal provision of free school meals for all children in primary schools.
Further recognition of the remarkable contribution of public sector workers during the pandemic has also been agreed, with revisions to the 2021-22 public sector pay policy. That will increase the cash underpin from £750 to £800 for those earning up to £25,000, matching the cash cap for high earners. For those who earn more than £25,000 and up to £40,000, the pay rise will increase from 1 to 2 per cent.
I am also committing to fund a greater extension to the concessionary travel scheme, ensuring free travel for those aged up to 21, which goes beyond the previous plan to extend the scheme to the under 19s. It will include 21-year-olds and will cost an additional £17 million next year. We will work to deliver that as quickly as we can in the coming months, subject to the necessary legislative and operational processes, the continued impact of Covid and engagement with key delivery partners.
To further help lower-income households, we will make a targeted pandemic support payment of £130 to households that are in receipt of council tax reduction, and two £100 payments to families with children who qualify for free school meals. That means that low-income families receiving reduced council tax bills and qualifying for free school meals will receive support payments worth £330.
As part of my agreement with the Scottish Liberal Democrats, I have agreed that the Scottish Government will further support education recovery efforts for children and young people from disadvantaged backgrounds with a £20 million pupil equity fund premium next year.
In recognition of the twin impacts of the pandemic and the downturn in the oil and gas sector, I will provide £15 million of financial support for retraining and reskilling to support the economic recovery in the north-east of Scotland, based on the principles of a just transition.
I will provide certainty to local government for next year’s budget by baselining the £90 million that was provided this year to support a national council tax freeze. That is in addition to the earlier commitments that I made to the Lib Dems to provide an additional £120 million for mental health services and £60 million in education recovery next year.
In the light of calls for a replacement for the Princess Alexandra eye pavilion in Edinburgh, we have asked NHS Lothian to carry out a review of its eye care services and to reconsider how they should be delivered. I commit to working with the board to implement its recommendations and to protect specialised eye services for the city and the wider region.