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Chamber

Meeting of the Parliament 09 October 2024

09 Oct 2024 · S6 · Meeting of the Parliament
Item of business
Budget Priorities 2025-26
Fraser, Murdo Con Mid Scotland and Fife Watch on SPTV

I have only four minutes, and I have a lot more to say. I am sorry.

Scotland is forecast to have the fifth-lowest gross domestic product growth of any UK region. We lag behind the rest of the UK in growth and have done so for the past decade. The SNP’s failure to grow our economy has cost the Scottish budget, to date, £624 million, according to a calculation that was done not by the Scottish Conservatives but by the Scottish Fiscal Commission. Underpinning all that, in Scotland, we pay more tax than the rest of the UK. Those decisions are having a negative impact on our ability to grow the economy. I have, many times in this Parliament, referred to the attitude of Scottish businesses towards the tax differential. In order to attract staff, many of them now have to offer a wage premium to take account of our higher taxes.

In addition, the Greens’ destructive approach to housing has damaged investment confidence and driven away hundreds of millions of pounds of investment, which has gone elsewhere. Thanks to the Greens’ policies on that sector, it is no wonder that we have a housing crisis.

Instead of introducing new taxes and widening the tax gap with the rest of the UK, the Scottish Government should go in the opposite direction. It should ignore the economic and fiscal illiteracy that the Scottish Greens propose and instead use its extensive and generous fiscal powers to deliver a budget later this year that will prioritise economic growth and reduce the tax gap with the rest of the UK. The Greens will not like that budget, but the rest of Scotland will be thankful for it.

I am pleased to move amendment S6M-14825.2, to leave out from “notes” to end and insert:

“agrees that the fiscal levers currently available to the Scottish Government are more than adequate to deliver the economic growth that is vital to sustain public services; recognises that the current fiscal settlement, provided by the former UK Conservative administration, is the most generous on record, and that the Scottish Government has failed to properly utilise the monies allocated to it, by instead choosing to prioritise wasteful projects, such as the National Care Service; notes that the Scottish Government’s financial incompetence, which was exacerbated by the former Bute House Agreement with the Scottish Green Party, has resulted in Scotland becoming a high-tax, low-growth economy that has lost the confidence of the business sector and has resulted in severe public sector spending cuts to fix the Scottish Government’s financial black hole, and urges the Scottish Government to show some common sense and ignore the economic and financial illiteracy proposed by the Scottish Green Party, which proposes yet more burdensome taxation and anti-growth regulations, and to use the generous fiscal powers that it already has to deliver a Budget that prioritises economic growth and provides for all of Scotland.”

15:10  
References in this contribution

Motions, questions or amendments mentioned by their reference code.

In the same item of business

The Deputy Presiding Officer (Liam McArthur) LD
The next item of business is a debate on motion S6M-14825, in the name of Ross Greer, on budget priorities 2025-26. I invite members who wish to participate ...
Ross Greer (West Scotland) (Green) Green
We are back to being a Parliament of minorities, which means that, for a budget to pass—or, indeed, for any parliamentary business to be agreed to—co-operati...
Murdo Fraser (Mid Scotland and Fife) (Con) Con
Would Mr Greer like to reflect on the fact that, under the fiscal framework and the Barnett formula, we in Scotland have around 20 per cent more to spend per...
Ross Greer Green
I am grateful for that intervention. There is a range of explanations for those outcomes. First and foremost, although we have greater spending per head, we ...
Daniel Johnson (Edinburgh Southern) (Lab) Lab
Ross Greer is right about sustainability and right to think about additional levies. However, I do not think that the levies that he has talked about, such a...
Ross Greer Green
I am grateful for that intervention, because it takes me to a point that I am about to touch on. Before I get to it, I want to round off the shared responsib...
Katy Clark (West Scotland) (Lab) Lab
Made a request to intervene.
Ross Greer Green
I am sorry, but I will not be able to take Katy Clark’s intervention, because I am just closing. The Greens want to see progress big and small. We want, for...
The Deputy Presiding Officer LD
As ever with these debates, there is very limited time in hand, so interventions will have to be accommodated largely within the speaking allocations. 15:00
The Cabinet Secretary for Finance and Local Government (Shona Robison) SNP
I thank the Scottish Green Party for lodging the motion. It is absolutely right that the fiscal levers that are currently available to the Scottish Governmen...
Daniel Johnson Lab
The cabinet secretary is right to talk about fiscal sustainability. What are her reflections on the Scottish Fiscal Commission’s observation about the £600 m...
Shona Robison SNP
The Scottish Fiscal Commission also said that there is “considerable uncertainty” about the resources that will be coming to the Scottish Government from the...
Ross Greer Green
I would appreciate it if the cabinet secretary could confirm that it is still the Scottish Government’s intention to deliver a cruise ship levy by the end of...
Shona Robison SNP
Yes—subject to all the consultation that we need in order to take on board stakeholders’ views of the cruise ship levy. It is important that we get that righ...
Murdo Fraser (Mid Scotland and Fife) (Con) Con
I do not think that I have ever seen a motion so full of so much nonsense as Ross Greer’s. Let me try to unpick exactly where the Greens are in error—althoug...
Ross Greer Green
Will the member take an intervention?
Murdo Fraser Con
Of course.
Ross Greer Green
I am very grateful to Mr Fraser for taking the intervention. I am interested in his thoughts on the question that I posed. Does he believe that the Parliamen...
Murdo Fraser Con
The Parliament has the most generous block grant in the history of devolution. The block grant has nearly doubled in real terms since the Parliament was esta...
Michelle Thomson (Falkirk East) (SNP) SNP
Will the member take an intervention?
Murdo Fraser Con
I have only four minutes, and I have a lot more to say. I am sorry. Scotland is forecast to have the fifth-lowest gross domestic product growth of any UK r...
Michael Marra (North East Scotland) (Lab) Lab
I agree with Ross Greer that it is certainly a good thing that we are going to have the long-awaited fiscal sustainability debate. There are real challenges ...
Ross Greer Green
I could not agree more with Mr Marra on his frustration with the failure to reform the council tax. Can he clarify Labour’s position on reforming the council...
Michael Marra Lab
Over the past decade, the Labour Party has brought forward a range of measures to reform council tax, but we have not found willing partners in this chamber....
The Deputy Presiding Officer LD
Minister!
Michael Marra Lab
Presiding Officer, given some of the cabinet secretary’s comments, you can understand why I am sceptical as to whether a shopping list of additional levies w...
Willie Rennie (North East Fife) (LD) LD
As normal, the Liberal Democrats will come forward with costed, reasonable proposals that will balance a growing economy with an interest in our constituenci...
Shona Robison SNP
Will the member take an intervention?
Willie Rennie LD
Not just now. When there is evidence that the majority of what is raised through a tax rise will be lost to behavioural change, there is no concern. No ques...
Ross Greer Green
Will the member take an intervention?