Meeting of the Parliament 07 January 2026
Let me begin with a point of consensus. We all want to ease the pressure on household budgets. Across Scotland, people are still feeling the strain of the cost of living crisis. Prices remain high, energy bills are still elevated and household budgets are stretched. Inflation may be easing, but the impact of years of rising prices remains. The Scottish Government understands that reality, and our priority is to support people with fairness and responsibility.
I will focus on three things—the Conservative proposal and its implications, our current income tax policy and the principles behind it, and the practical action that the Scottish Government is taking to support households across the country.
I will turn first to the Conservative income tax plans. Russell Findlay recently wrote to the First Minister about those. Our estimates show that Conservative income tax asks would cost the Scottish budget more than £1 billion in 2026-27. That is the difference between maintaining essential public services and making deep cuts to the everyday support that people rely on. We are always willing to work constructively across the chamber, but that requires that proposals are credible, that they add up and that members are honest about what they would mean for services and for the households that depend on them.