Meeting of the Parliament 19 February 2026 [Draft]
As I begin today’s debate, I will first draw the Parliament’s attention to the procedural connection between the debate and rule 9.16.7 of standing orders, which states that a Scottish rate resolution must be agreed before stage 3 of the budget bill can proceed.
This rate resolution gives the Parliament an opportunity to provide stability in our tax system while delivering vital investment in our public services and giving our young people more opportunities to learn and flourish. Our approach to date has shown that there is not a trade-off between a progressive tax policy and the economy. Since 2007, Scottish gross domestic product per person has grown by 8.7 per cent, compared with 6.7 per cent in the United Kingdom, and, according to the latest forecasts, it is set to continue to grow faster, as are earnings. Unemployment also remains lower in Scotland; indeed, it is forecast to be around 4.2 per cent lower than in the UK over the next five years.
Ernst & Young’s annual attractiveness survey continues to show greater growth in foreign direct investment projects in Scotland than in the rest of the UK. Since the introduction of Scottish income tax in 2017-18, more taxpayers have come to Scotland than have left, with net inflows averaging almost 4,200 per year.