Smith: National Care Service funding should go to local government
Getty ImagesCopyright: Getty Images
Ms Smith says the tax take and productivity are not high enough in Scotland.
The Scottish Tory finance spokeswoman warns we must also help those who are at the productive end of the economy as it is as important as looking after the vulnerable.
She says four Holyrood committees looked at the National Care Service proposal and it is difficult to find any stakeholder who backs the proposals.
Ms Smith calls for the cash to be reallocated to the frontline of local government.
It’s far from his first, but could this be John Swinney’s final
budget?
The deputy first minister is
standing in as finance secretary while Kate Forbes is on maternity leave, but
she has very much returned to the front lines as a leadership contender.
In theory he will soon be going
back to his day job as Covid recovery secretary.
And his decision not to run for the
SNP leadership - saying a “fresh perspective” was needed - perhaps raises a
question about whether he will remain at Holyrood in the longer term.
There is no question that Mr
Swinney thoroughly enjoys these moments in the parliamentary chamber, engaging
in some fiery exchanges with opposition MSPs and gleefully heckling them from
the front bench.
But as the SNP moves towards a new generation, there may be a
question over whether he will have many more of them.
Tory MSP warns middle earners will have to pay more in Scotland
gCopyright: g
Scottish Conservative MSP Liz Smith says her party supported the Child Payment and adds a budget is about much more than one measure.
She adds, according to the Institute of Fiscal Studies, the SNP are reliant on funding free prescriptions and no tuition fees by taxing middle and higher earners much more.
Ms Smith says young professionals will pay more in Land and Buildings Transaction Tax (LBTT) than in stamp duty down south.
She adds they will pay nearly £1,000 in income tax and council tax.
'Difficult decisions in difficult times'
Getty ImagesCopyright: Getty Images
An increase in the Scottish Child Payment to £25 is part of the Scottish government's child poverty action planImage caption: An increase in the Scottish Child Payment to £25 is part of the Scottish government's child poverty action plan
The deputy first minister says the budget is "anchored" in three main themes: combatting child poverty, supporting the transition to net zero, and providing sustainable public services.
Mr Swinney confirms the government will be increasing the top and higher levels of taxation by 1p each.
But he argues the majority of people in Scotland will pay less in taxation than the rest of the UK.
He says more than £19bn will go towards the health and social care portfolio and £2bn towards primary care in the community.
And the government will freeze the non-domestic rate poundage for businesses.
Mr Swinney says £5.2bn from the budget will go to social security payments, including £442m invested in Scottish child payments which give families £25 per week per child.
However he acknowledges the difficulties in the budget, saying: "These are difficult decisions in difficult economic times."
Uplift of £6.6m for Creative Scotland
Getty ImagesCopyright: Getty Images
The deputy first minister says he will provide an uplift of £6.6m for Creative Scotland for 23/24.
Mr Swinney says our country requires the inspiration the arts and culture sector provides.
'I hope there's no mucking about today'
Mr Swinney says: "I hope there's no mucking about today in not voting in favour of the budget I am putting in front of parliament."
Councils to get 3% real terms increase
Getty ImagesCopyright: Getty Images
Scotland's councils face tough spending choices to make up for budget shortfallsImage caption: Scotland's councils face tough spending choices to make up for budget shortfalls
The total additional funding for councils next year is £793m.
The total funding now being made available to support local services is nearly £13.5bn, plus the revenues from council tax.
This is a 3% real terms increase, Mr Swinney says.
DFM reminds us about additional funding for teachers' pay
PA MediaCopyright: PA Media
Teacher strikes have been affecting schools across the countryImage caption: Teacher strikes have been affecting schools across the country
The deputy first minister says last week the government confirmed it would provide an additional £156m to support a new pay offer for teachers.
£33m is for this financial year and a further £123m for next year, he explains.
Additional £100m for local government
Mr Swinney explains he can now make clear some additional spending plans for 2023/24.
The deputy first minister says there will be an additional £100m to support councils and their expenditure.
This cash is to ensure a suitable pay offer is given to non-teaching staff.
'Hardest budget process'
The deputy first minister tells the chamber: "This is by far the hardest budget process that I have led."
John Swinney says Barnett funding is down by 5% since 2021/22.
He says he is now confident of the path to balance the budget for this financial year.
Mr Swinney adds there is an additional £125m in Barnett consequentials and there will be an additional £21m for 2023/24.
Budget debate begins...
John Swinney gets to his feet and the final Budget Bill debate is under way.
Scottish Budget Stage 3 debate is next...
Getty ImagesCopyright: Getty Images
John Swinney will shortly urge MSPs to vote for the Budget, saying it will help people most impacted by the cost of living crisis.
The deputy first minister has said his 2023/24 proposals would also create jobs and help Scotland reach its climate targets.
They include an income tax rise for everyone earning more than £43,662.
Opposition parties have criticised the plans, but Swinney - who is standing in for finance secretary Kate Forbes - said he hoped they would acknowledge the challenging economic conditions.
Among the unknowns, though, is how much will have to be found in next year's budget to settle pay claims by public sector workers. As things stand, there is no pay policy.
Holyrood budgets for the past six years have not only been about spending but about big decisions on income tax. The Scottish government reckons that taxpayers earning earning above £27,850 are willing to pay more than they would elsewhere in the UK. Someone earning £150,000 will be paying £3857 more income tax than a person earning the same in England.
As a result of this year's budget, earnings starting at nearly £45,000 will see a bigger tax bill than 2022-23.
The Institute for Fiscal Studies recently gave the Scottish government political cover on that, with analysis that shows how much these new tax and benefit powers are allied to re-distribution from higher earners to Scotland's poorer families.
The Scottish government likes to be seen as progressive that way. It cites a YouGov survey last October suggesting that two-thirds of people think government should use tax to redistribute to the less well off. Just over half, however, agreed with the proposition that higher tax should be levied to improve health, education and benefits.
Some 47% of people in the survey said they would personally be willing to pay more tax for public services, and the same proportion think their tax bill was not too high or low, but... just about right.
Will faith turn the tide for Scottish independence?
James Cook
Scotland Editor, BBC News
Getty ImagesCopyright: Getty Images
Nothing lasts forever. That is true in politics as it is in life.
As they wash ashore, some political tides reshape the landscape before, eventually, they recede again.
Are we at such a moment? Is this the turning of the tide for the Scottish National Party and its campaign to end the 316-year old union between Scotland and England?
The answer to that question may lie with one of three people: Humza Yousaf, Kate Forbes or Ash Regan, all of whom are vying to take over from Nicola Sturgeon as SNP leader and Scotland's First Minister.
The Holyrood budget set out in draft on December 15 was a cold blast of bleak midwinter. At the same time, we were told that the economy was heading into an unusually long downturn.
The final stage of the legislative process in February comes with some hopes that the economic downturn will not be as harsh as previously forecast. And if you think next year's budget looks very difficult, they look a lot worse for the years that follow.
Health and social care get a lot more, rising to £19bn, though whether the proposed National Care Service will get all that it has been allocated may be down to the next First Minister. The legislation for that is bringing political problems, to say the least.
To accommodate a sizeable boost to those priorities as well as a rise in spending on welfare benefits - notably taking the Scottish Child Payment to £25 per week - means a squeeze on other spending.
Local authorities tend to complain most loudly, and with quite good reason. They have started setting council tax, at 5% more from April, while making deep cuts to services and grants to local organisations.
How much income tax will you pay?
BBCCopyright: BBC
Everyone earning more than £43,662 in Scotland will have to pay more income tax next year.
The higher rate of tax will increase from 41p to 42p in the pound in April, and the top rate from 46p to 47p.
The tax threshold for the top rate will also be lowered from £150,000 to £125,140.
SNP leadership race: Kate Forbes loses SNP backers over gay marriage stance
PA MediaCopyright: PA Media
Finance Secretary Kate Forbes has sparked controversy with comments about equal marriageImage caption: Finance Secretary Kate Forbes has sparked controversy with comments about equal marriage
5pm: Decision time - MSPs are expected to pass the Scottish government's Budget Bill
Scottish Budget Stage 3 debate starts soon...
PA MediaCopyright: PA Media
Deputy First Minister John Swinney presented the proposals in DecemberImage caption: Deputy First Minister John Swinney presented the proposals in December
The Scottish government will shortly urge MSPs to vote for its Budget, having debated it for the final time.
It says it will help people most impacted by the cost of living crisis.
Deputy First Minister John Swinney said his 2023/24 proposals would also create jobs and help Scotland reach its climate targets.
They include an income tax rise for everyone earning more than £43,662.
Mr Swinney called on MSPs to back the decision to channel "limited resources" where they are needed most.
Opposition parties have criticised the plans, but the deputy first minister - who is standing in for finance secretary Kate Forbes - said he hoped they would acknowledge the challenging economic conditions.
Live Reporting
BBC Scotland News
All times stated are UK
Smith: National Care Service funding should go to local government
Ms Smith says the tax take and productivity are not high enough in Scotland.
The Scottish Tory finance spokeswoman warns we must also help those who are at the productive end of the economy as it is as important as looking after the vulnerable.
She says four Holyrood committees looked at the National Care Service proposal and it is difficult to find any stakeholder who backs the proposals.
Ms Smith calls for the cash to be reallocated to the frontline of local government.
Could this be John Swinney’s final budget?
Philip Sim
BBC Scotland political correspondent
It’s far from his first, but could this be John Swinney’s final budget?
The deputy first minister is standing in as finance secretary while Kate Forbes is on maternity leave, but she has very much returned to the front lines as a leadership contender.
In theory he will soon be going back to his day job as Covid recovery secretary.
And his decision not to run for the SNP leadership - saying a “fresh perspective” was needed - perhaps raises a question about whether he will remain at Holyrood in the longer term.
There is no question that Mr Swinney thoroughly enjoys these moments in the parliamentary chamber, engaging in some fiery exchanges with opposition MSPs and gleefully heckling them from the front bench.
But as the SNP moves towards a new generation, there may be a question over whether he will have many more of them.
Tory MSP warns middle earners will have to pay more in Scotland
Scottish Conservative MSP Liz Smith says her party supported the Child Payment and adds a budget is about much more than one measure.
She adds, according to the Institute of Fiscal Studies, the SNP are reliant on funding free prescriptions and no tuition fees by taxing middle and higher earners much more.
Ms Smith says young professionals will pay more in Land and Buildings Transaction Tax (LBTT) than in stamp duty down south.
She adds they will pay nearly £1,000 in income tax and council tax.
'Difficult decisions in difficult times'
The deputy first minister says the budget is "anchored" in three main themes: combatting child poverty, supporting the transition to net zero, and providing sustainable public services.
Mr Swinney confirms the government will be increasing the top and higher levels of taxation by 1p each.
But he argues the majority of people in Scotland will pay less in taxation than the rest of the UK.
He says more than £19bn will go towards the health and social care portfolio and £2bn towards primary care in the community.
And the government will freeze the non-domestic rate poundage for businesses.
Mr Swinney says £5.2bn from the budget will go to social security payments, including £442m invested in Scottish child payments which give families £25 per week per child.
However he acknowledges the difficulties in the budget, saying: "These are difficult decisions in difficult economic times."
Uplift of £6.6m for Creative Scotland
The deputy first minister says he will provide an uplift of £6.6m for Creative Scotland for 23/24.
Mr Swinney says our country requires the inspiration the arts and culture sector provides.
'I hope there's no mucking about today'
Mr Swinney says: "I hope there's no mucking about today in not voting in favour of the budget I am putting in front of parliament."
Councils to get 3% real terms increase
The total additional funding for councils next year is £793m.
The total funding now being made available to support local services is nearly £13.5bn, plus the revenues from council tax.
This is a 3% real terms increase, Mr Swinney says.
DFM reminds us about additional funding for teachers' pay
The deputy first minister says last week the government confirmed it would provide an additional £156m to support a new pay offer for teachers.
£33m is for this financial year and a further £123m for next year, he explains.
Additional £100m for local government
Mr Swinney explains he can now make clear some additional spending plans for 2023/24.
The deputy first minister says there will be an additional £100m to support councils and their expenditure.
This cash is to ensure a suitable pay offer is given to non-teaching staff.
'Hardest budget process'
The deputy first minister tells the chamber: "This is by far the hardest budget process that I have led."
John Swinney says Barnett funding is down by 5% since 2021/22.
He says he is now confident of the path to balance the budget for this financial year.
Mr Swinney adds there is an additional £125m in Barnett consequentials and there will be an additional £21m for 2023/24.
Budget debate begins...
John Swinney gets to his feet and the final Budget Bill debate is under way.
Scottish Budget Stage 3 debate is next...
John Swinney will shortly urge MSPs to vote for the Budget, saying it will help people most impacted by the cost of living crisis.
The deputy first minister has said his 2023/24 proposals would also create jobs and help Scotland reach its climate targets.
They include an income tax rise for everyone earning more than £43,662.
Opposition parties have criticised the plans, but Swinney - who is standing in for finance secretary Kate Forbes - said he hoped they would acknowledge the challenging economic conditions.
Is this budget more progressive?
Douglas Fraser
Scotland business & economy editor
Among the unknowns, though, is how much will have to be found in next year's budget to settle pay claims by public sector workers. As things stand, there is no pay policy.
Holyrood budgets for the past six years have not only been about spending but about big decisions on income tax. The Scottish government reckons that taxpayers earning earning above £27,850 are willing to pay more than they would elsewhere in the UK. Someone earning £150,000 will be paying £3857 more income tax than a person earning the same in England.
As a result of this year's budget, earnings starting at nearly £45,000 will see a bigger tax bill than 2022-23.
The Institute for Fiscal Studies recently gave the Scottish government political cover on that, with analysis that shows how much these new tax and benefit powers are allied to re-distribution from higher earners to Scotland's poorer families.
The Scottish government likes to be seen as progressive that way. It cites a YouGov survey last October suggesting that two-thirds of people think government should use tax to redistribute to the less well off. Just over half, however, agreed with the proposition that higher tax should be levied to improve health, education and benefits.
Some 47% of people in the survey said they would personally be willing to pay more tax for public services, and the same proportion think their tax bill was not too high or low, but... just about right.
Will faith turn the tide for Scottish independence?
James Cook
Scotland Editor, BBC News
Nothing lasts forever. That is true in politics as it is in life.
As they wash ashore, some political tides reshape the landscape before, eventually, they recede again.
Are we at such a moment? Is this the turning of the tide for the Scottish National Party and its campaign to end the 316-year old union between Scotland and England?
The answer to that question may lie with one of three people: Humza Yousaf, Kate Forbes or Ash Regan, all of whom are vying to take over from Nicola Sturgeon as SNP leader and Scotland's First Minister.
Read more here.
A bleak midwinter or an early spring?
Douglas Fraser
Scotland business & economy editor
The Holyrood budget set out in draft on December 15 was a cold blast of bleak midwinter. At the same time, we were told that the economy was heading into an unusually long downturn.
The final stage of the legislative process in February comes with some hopes that the economic downturn will not be as harsh as previously forecast. And if you think next year's budget looks very difficult, they look a lot worse for the years that follow.
Health and social care get a lot more, rising to £19bn, though whether the proposed National Care Service will get all that it has been allocated may be down to the next First Minister. The legislation for that is bringing political problems, to say the least.
To accommodate a sizeable boost to those priorities as well as a rise in spending on welfare benefits - notably taking the Scottish Child Payment to £25 per week - means a squeeze on other spending.
Local authorities tend to complain most loudly, and with quite good reason. They have started setting council tax, at 5% more from April, while making deep cuts to services and grants to local organisations.
How much income tax will you pay?
Everyone earning more than £43,662 in Scotland will have to pay more income tax next year.
The higher rate of tax will increase from 41p to 42p in the pound in April, and the top rate from 46p to 47p.
The tax threshold for the top rate will also be lowered from £150,000 to £125,140.
SNP leadership race: Kate Forbes loses SNP backers over gay marriage stance
Meanwhile in the SNP leadership race contender Kate Forbes has denied her campaign has been derailed by comments on gay marriage.
Key backers have announced they can no longer support the finance secretary, who said she would have voted against legislation on same-sex unions.
She is one of three confirmed candidates in the contest, alongside Humza Yousaf and Ash Regan.
Ms Forbes said she would not seek to overturn gay marriage laws if she succeeded Nicola Sturgeon.
What's coming up in the chamber this afternoon?
Scottish Budget Stage 3 debate starts soon...
The Scottish government will shortly urge MSPs to vote for its Budget, having debated it for the final time.
It says it will help people most impacted by the cost of living crisis.
Deputy First Minister John Swinney said his 2023/24 proposals would also create jobs and help Scotland reach its climate targets.
They include an income tax rise for everyone earning more than £43,662.
Mr Swinney called on MSPs to back the decision to channel "limited resources" where they are needed most.
Opposition parties have criticised the plans, but the deputy first minister - who is standing in for finance secretary Kate Forbes - said he hoped they would acknowledge the challenging economic conditions.
Welcome
Good afternoon and welcome to our live coverage of the Scottish Budget, as MSPs debate it for the final time.
To watch the debate just click on the play icon at the top of this page.
We'll bring you reports, analysis and reaction throughout the afternoon.
There is also, of course, the SNP leadership race which is under way and we'll bring you developments from it as well.