Meeting of the Parliament 19 December 2023
I join Liz Smith in welcoming the Presiding Officer back to her seat. I also give my apologies for the late statement.
Our asks of the UK Government—for more money for the public sector and for capital—were quite modest. The UK Tory chancellor had £27 billion of fiscal headroom but chose to deliver only tax cuts and no investment in public services. That is a political choice made by the Tory chancellor, but it is not a choice that will be made by the SNP Government. Of course, the £1.5 billion that we have in addition to spend is due to the tax decisions that we have taken here—those are actions taken by the SNP Government.
Liz Smith mentioned failed projects. I have to say to her that, with the growing list of HS2, the failed Rwanda policy and the latest PPE—personal protective equipment—scandal, I do not think that she should really bring that point to the chamber.
The top three concerns and asks of business are on inflation, interest rates and energy costs, and those issues have been compounded by the decisions that the UK Government has made. On tax, I have been clear that the tax position will impact only on the highest-earning 5 per cent of taxpayers in 2024-25. People who earn up to £28,850—that is 51 per cent of Scottish taxpayers—will continue to pay less income tax in 2024-25 than they would pay if they lived elsewhere in the UK.
We have been clear on growing the economy, and I set out in my statement the actions that we are taking to do that. Since 2007, gross domestic product per capita in Scotland has grown by 10 per cent, compared with 6.4 per cent at UK level. Average earnings in Scotland are now growing faster than those in the UK. Next year, we will continue supporting investment that seizes the opportunities of our net zero transition, and we will work with business and investors to launch a new green industrial strategy.
We will get on with delivering a balanced budget that recognises the needs of public services, first and foremost, but also of households and of business.