Meeting of the Parliament 19 February 2026 [Draft]
I thank members for their contributions to the debate. I will speak to some of those shortly.
Parliament is being asked to vote on a key policy that underpins the budget and will raise the revenue that is needed to fund public services and provide financial support to families across Scotland. Last year, we made commitments to provide stability and certainty on income tax for taxpayers and the business community in order to support our growing economy in Scotland, and the budget proposal delivers on that commitment.
In all our income tax decisions, we carefully balance the need to raise revenue with the impact on individuals, households and the wider economy. The Scottish Fiscal Commission estimates that income tax will bring in £21.5 billion for the Scottish budget in 2026-27. Scottish Government analysis indicates that the changes will mean that more than 55 per cent of Scots—everyone earning less than around £33,500—are set to pay less income tax in 2026-27 than they would pay elsewhere in the UK.
We continue to use every lever at our disposal to grow the economy, which creates opportunity for people across Scotland and increases our tax revenues. It is for other parties that propose uncosted tax cuts to explain how they would be afforded without running down the vital public services that many of the lowest paid in our society rely on.
We have always been clear on the need for cross-party engagement on tax and spending. The productive discussions that we have with colleagues and the agreements that we gain from them ahead of the budget reflect the fact that credible alternatives are always welcomed by this Government. The proposed budget will help and support families with the cost of living and provide a tax cut for some of the lowest-paid individuals while continuing to invest in meaningful public services that are used by families across Scotland.
I turn to members’ contributions. We again heard Craig Hoy’s and his party’s position that they want to see another £1 billion or £1.5 billion—I cannot remember—on top of the £1.5 billion that we are already delivering in efficiencies. However, they have no idea where that would come from; they are just throwing numbers out there in the hope—