Summary

  • Finance Secretary Derek Mackay pledges a funding increase of £240m for local services

  • Opposition parties said the amount of cash going direct to councils will be cut.

  • The finance secretary does not change income tax rates or bands - but does not pass on the UK Treasury's tax cut for high earners

  • Mr Mackay reveals the draft budget for 2017-18

  • £120m for the education attainment fund, with the cash going directly to schools, a u-turn with the cash coming from central government and not councils

  1. More funding cuts 'disastrous' for councils, warns Coslapublished at 14:22 Greenwich Mean Time 15 December 2016

    Local councils run services such as road maintenance, refuse collections and educationImage source, bbc
    Image caption,

    Local councils run services such as road maintenance, refuse collections and education

    Further cuts to council funding "disastrous", according to the head of local government body Cosla.

    A special meeting of council leaders is due to take place in Edinburgh on Tuesday.

    Ahead of that, Cosla president David O'Neill urged Scottish ministers to preserve funding in this week's budget.

    The Scottish government said local government had been treated fairly despite cuts to the overall Scottish budget made by Westminster.

    The local government revenue settlement funding for councils is due to be announced on Thursday, along with the budget.

  2. Scotland's social care services 'unsustainable'published at 14:21 Greenwich Mean Time 15 December 2016

    The current system of social care in Scotland is "unsustainable", according to a financial watchdog.

    The Accounts Commission said an additional £667m, external would be needed by 2020 to maintain current levels of service, and called for a "frank and wide-ranging" debate on the issue.

    Scotland's Social Care SpendImage source, bbc/Thinkstock

    It said an ageing population, budget cuts and legislative changes were putting pressure on the system.

    Scotland's 32 councils currently spend about £3.1bn on social care.

    That money was used to provide support to more than 300,000 people in 2014/15 - about 70% of whom were aged over 65.

  3. Postpublished at 14:20 Greenwich Mean Time 15 December 2016

    This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
    The BBC is not responsible for the content of external sites.
    Skip twitter post

    Allow Twitter content?

    This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.

    The BBC is not responsible for the content of external sites.
    End of twitter post
  4. Autumn statement: Scottish budget to receive extra £800mpublished at 14:19 Greenwich Mean Time 15 December 2016

    Scotland's capital budget is to be given an extra £800m over the next five years as part of an investment package, the UK Chancellor said last month.

    Philip Hammond made the announcement as he unveiled his Autumn Statement in the House of Commons.

    The money is the result of increased spending on infrastructure in the rest of the UK.

    The chancellor made the announcement in his Autumn Statement - which he said would now be abolishedImage source, PA
    Image caption,

    The chancellor made the announcement in his Autumn Statement - which he said would now be abolished

    Mr Hammond said the additional funds would give Holyrood greater ability to boost productivity and promote growth.

    However, Scotland's Finance Secretary Derek Mackay said the chancellor had revealed a "Brexit bombshell".

    He told BBC Scotland's political editor Brian Taylor: "We have learned of the Brexit bombshell which is lower economic growth, lower revenues as a consequence, higher borrowing and higher inflation that will impact on the economy generally and it will impact upon household budgets."

    Mr Mackay also expressed dismay that there was no new funding for the NHS or reassurances given about the UK's relationship with Europe's single market.

    Click here for the Holyrood Live report of Mr Mackay's response to the Autumn Statement on 30 November.

  5. Analysis: What's the timetable?published at 14:19 Greenwich Mean Time 15 December 2016

    Philip Sim
    BBC Scotland political reporter

    MSPs will vote on the budget plans in February 2017Image source, PA
    Image caption,

    MSPs will vote on the budget plans in February 2017

    The budget timetable has already been the subject of controversy, with Mr Mackay delaying publication until mid-December instead of the more traditional September date.

    The finance secretary wanted to wait until after Philip Hammond's Autumn Statement so that he had a full picture of the fiscal playing field - but MSPs were concerned about how little time this would leave for scrutiny, with the opposition accusing Mr Mackay of "showing contempt for parliament".

    Committees have already started some pre-budget scrutiny, but will buckle down in earnest following Mr Mackay's statement on Thursday, before the plans go before parliament for the first time towards the end of January.

    More committee examination will follow, with votes there at stage two before the final stage three vote in the Holyrood chamber at the end of February.

    Underpinning all of this will be continuing negotiations, both with opposition parties and local authorities.

    And remember that there will be a separate vote on tax, likely to be one week before the stage three vote.

    Related Topics

  6. Deal or No Deal - who will back the government?published at 14:18 Greenwich Mean Time 15 December 2016

    Philip Sim
    BBC Scotland political reporter

    Which of the opposition leaders - if any - will back the SNP's budget?Image source, bbc
    Image caption,

    Which of the opposition leaders - if any - will back the SNP's budget?

    With the SNP now ruling as a minority administration, opposition parties have been increasingly willing to gang up on the government this term. They've bloodied Nationalist noses on everything from repealing the Football Act to the NHS - and indeed tax.

    But it's one thing to score points in symbolic chamber votes - it would be quite another to derail a budget. In any case, the SNP only need to win over one party to seal the deal.

    You can more or less rule out the Tories as potential bedfellows, given their differences both in politics and policy. Yes, John Swinney struck deals with them in the previous minority government of 2007-11, but Ruth Davidson's Tories have set their stall out very specifically as a "strong opposition".

    They have made overtures on the subject of Air Passenger Duty, but the idea of Scots paying more income tax than their neighbours south of the border is anathema to Conservatives.

    Labour and the Lib Dems also stand quite some way from the SNP on the crucial matter of tax, albeit for a different reason: both sides strongly advocate raising income tax to protect services.

    A deal with Labour seems particularly unlikely from a political standpoint, regrouping as they are after slumping to third in May's elections and looking ahead to a bitter battle against the SNP in many councils in 2017.

    Could the Lib Dems be persuaded? Perhaps, in exchange for funding pledges on mental health, education or childcare, although again tax is an issue.

    But the Greens might be a marginally easier sell, despite their similarly tough election stance on tax; they could perhaps be won over with some money towards action on poverty or support for energy efficiency. Perhaps.

    There doesn't need to be a deal this week, of course; nothing is being voted on just yet. The horse-trading will continue well into the New Year.

  7. Schools, houses and hospitals - will budgets increase?published at 14:17 Greenwich Mean Time 15 December 2016

    Philip Sim
    BBC Scotland political reporter

    The Scottish government has made education a big priorityImage source, Getty Images
    Image caption,

    The Scottish government has made education a big priority

    Looking more towards the spending than raising of funds, what has Mr Mackay got in mind for local services?

    The NHS budget is set to increase, with the SNP repeatedly promising £500m more above the rate of inflation by the end of the parliament. They have also pledged extra funds for social care, cancer prevention and treatment and mental health services.

    Nicola Sturgeon has asked to be judged on her record specifically on education, and has tasked John Swinney, a veteran of budgetary statements, with improving Scotland's schools. So there will be extra funding for schools - in particular via the Attainment Fund, which sends money direct to head teachers - as well as for early years and childcare.

    This would also be a timely moment for the government to boost education from a political perspective, given recent challenging statistics.

    The government has also targeted investing billions in house building, aiming for at least 50,000 new affordable homes over the course of the parliament. There may also be some cash for energy efficiency in existing homes.

    The rural economy has also been highlighted as a priority, with promises of funding for expanded broadband coverage, rural communities and the environment.

    And look out for some support for business and potentially capital investment to stimulate the economy in the turbulent post-Brexit referendum era.

  8. Analysis: Councils more hard times ahead?published at 14:16 Greenwich Mean Time 15 December 2016

    Philip Sim
    BBC Scotland political reporter

    Council bosses are worried about how much money will be coming their wayImage source, bbc
    Image caption,

    Council bosses are worried about how much money will be coming their way

    After tax, perhaps the most controversial topic in the budget is the share of funds that go to local authorities.

    This pot of money has been shrinking in recent years, amid warnings that "significant challenges" lie ahead due to shrinking income and rising demand for services. However, the government insists it has treated councils "fairly" in line with falling block grants coming north from Westminster.

    Council bosses appear braced for more hard times, warning that cuts could be "disastrous" for local services. Expect lengthy negotiations between them and Mr Mackay's team following the statement - indeed, they have already started.

    Politically, the local authority elections looming in May could have some bearing on the settlement and the following talks - with councillors, ministers and opposition leaders lining up for a scrap.

    Aside from the main settlement, local authorities will be able to squeeze out some more funds with the unfreezing of council tax; they will be able to raise the levy by up to 3%, although the final choice comes down to each council.

    People in higher council tax bands will face an increase regardless, with the proportion of bands E-H being altered. However, the plan is for this increase to raise £100m for education nationwide, rather than to swell council coffers. That has been controversial and we should watch for the final plan.

  9. Analysis: Taxation - up, down or stay the same?published at 14:14 Greenwich Mean Time 15 December 2016

    Philip Sim
    BBC Scotland political reporter

    Money and HM Revenue and CustomsImage source, PA
    Image caption,

    Holyrood is taking on a series of new tax powers

    This is the big topic, in light of Holyrood's new fiscal powers. It is also the one where the government's plans may be clearest, thanks to the specific proposals in the SNP's manifesto, external.

    Under the Scotland Act, from the start of next year Holyrood is taking on the power to set the rates and bands of income tax (on earned income, excluding savings and dividends).

    Focusing on Scotland alone, rates will not change. You should not face a higher tax bill in Scotland. But, depending on your income, you may be left paying more tax than you would if you lived and worked in England.

    That is because there will be a change in comparison to the rest of the UK. The SNP has pledged not to replicate tax cuts proposed at Westminster for the higher rate band, in the form of a change to the threshold of the top tax rate.

    Derek Mackay will be setting out his first set of spending proposals at Holyrood on ThursdayImage source, bbc
    Image caption,

    Derek Mackay will be setting out his first set of spending proposals at Holyrood on Thursday

    This means the highest paid people north of the border will ultimately pay more tax than their southern neighbours.

    The UK government plans to raise the threshold for the higher rate from £43,000 to £45,000 next year, 2017/18 - and eventually to £50,000. The Scottish government meanwhile intends to raise it only by the CPI rate of inflation in 2017, to £43,430, and by no more than the rate of inflation each year until 2021/22.

    In terms of the basic rate of income tax, the SNP has pledged to freeze it for the duration of the parliament.

    There will actually be a separate vote on the tax proposals next year, before the final budget package is agreed - raising the intriguing possibility that the (minority) government could partner up with one party over tax, before getting a different one to back the budget as a whole.

  10. Opposition party leaders' viewspublished at 14:11 Greenwich Mean Time 15 December 2016

    The Scottish Conservatives oppose any plans which would see Scots pay more tax than workers south of the border.

    Leader Ruth Davidson said the budget was a "historic moment", but said there was "basic unfairness" in the SNP's proposals.

    Scottish Labour meanwhile have urged the government to up the additional rate of tax paid by those earning over £150,000 to 50p, warning they would not back a budget that fails to protect services.

    Leader Kezia Dugdale said if Mr Mackay did not back her tax proposals, it would "destroy" any claim the SNP has to be a party of the progressive left.

    Opposition party leadersImage source, BBC/PA/Scottish Parliament
    Image caption,

    Opposition party leaders

    The Scottish Greens have also previously called for more "progressive" taxation via a series of new rates and thresholds.

    Co-convener Patrick Harvie put forward a lengthy list of "areas for action in the budget", including "fair funding for local authorities", a top-up of child benefit, a new benefit for young carers, investment in GPs, and green initiatives like low-carbon transport and energy efficient housing.

    The Scottish Lib Dems meanwhile back raising income tax across all bands by 1p, generating funds for education services.

    Leader Willie Rennie said: "Liberal Democrats are proposing a modest penny on income tax that would deliver hundreds of millions of pounds that can be invested in our schools.

  11. Mackay insists the budget will provide high-quality public services for allpublished at 14:03 Greenwich Mean Time 15 December 2016

    Derek MackayImage source, bbc
    Image caption,

    Derek Mackay insists the budget will provide high-quality public services for all

    Mr Mackay insisted his proposals would "support the economy, tackle inequality and provide high-quality public services for all".

    He said: "This is a historic budget, delivered in challenging economic and political times. The UK government's Autumn Statement was a missed opportunity to end austerity. It did not go far enough to get the economy back on track and lacked much-needed investment in public services.

    "Despite these challenges, the proposals I will publish will be a budget for our economy and public services, our environment and communities. It will support stability and growth, help tackle climate change and promote fairness in our society."

  12. Mackay to set out Scottish government budget planspublished at 14:02 Greenwich Mean Time 15 December 2016

    HolyroodImage source, Scottish Parliament
    Image caption,

    Holyrood has taken on a series of new tax powers from the UK government

    Finance Secretary Derek Mackay is to publish the Scottish government's budget plans for the coming year.

    Mr Mackay will set out his tax and spending plans, which will include the first use of Holyrood's new tax powers.

    Opposition parties will get the chance to outline their own priorities while putting questions to the minister.

    The budget proposals will be scrutinised by parliament and Holyrood's committees, with final votes taking place in February.

    There will be a separate vote on tax the week before the final budget vote in February, with the government requiring opposition support for both votes. However there is not yet any consensus on tax at Holyrood, with a vote on Wednesday ending in stalemate.

    This is the first Scottish budget since Holyrood took on a series of new tax powers from Westminster, with the SNP already pledging not to replicate a tax cut for higher earners proposed by the UK government.

    The Scottish budget is traditionally outlined in September, but Mr Mackay delayed his until December in order to take account of Chancellor Philip Hammond's Autumn Statement.

  13. Budget Analysis by BBC Scotland political editor Brian Taylorpublished at 14:01 Greenwich Mean Time 15 December 2016

    TaxImage source, Thinkstock

    On income tax, Derek Mackay will leave rates alone - but won't replicate the Treasury's cut for higher earners.

    He'll start acting on manifesto promises. So that's protecting NHS and police budgets.

    There's more for childcare and school attainment.

    Council tax rises will be capped at three per cent - with higher charges for the most expensive properties.

    But it's thought he'll shelve a plan to divert cash from that to schools in the poorest areas, following objections.

    Councils are braced for big cuts - but sources suggest the impact will be contained.

  14. Postpublished at 13:56 Greenwich Mean Time 15 December 2016

    This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
    The BBC is not responsible for the content of external sites.
    Skip twitter post

    Allow Twitter content?

    This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.

    The BBC is not responsible for the content of external sites.
    End of twitter post
  15. Postpublished at 13:56 Greenwich Mean Time 15 December 2016

    This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
    The BBC is not responsible for the content of external sites.
    Skip twitter post

    Allow Twitter content?

    This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.

    The BBC is not responsible for the content of external sites.
    End of twitter post
  16. Postpublished at 13:55 Greenwich Mean Time 15 December 2016

    This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
    The BBC is not responsible for the content of external sites.
    Skip twitter post

    Allow Twitter content?

    This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy, external and privacy policy, external before accepting. To view this content choose ‘accept and continue’.

    The BBC is not responsible for the content of external sites.
    End of twitter post
  17. Coming up.........IT'S BUDGET DAYpublished at 13:24 Greenwich Mean Time 15 December 2016

    Budget collageImage source, bbc/Scottish Parliament/Getty Images
    Image caption,

    Our coverage of the Budget gets underway in earnest at 2.30pm

  18. Scotland's World Heritage sites should be 'treasured' - Culture Secretarypublished at 13:23 Greenwich Mean Time 15 December 2016

    Culture and Tourism Secretary Fiona Hyslop says this debate has highlighted the importance of Edinburgh's World Heritage site.

    Culture and Tourism Secretary Fiona Hyslop
    Image caption,

    Culture and Tourism Secretary Fiona Hyslop

    Ms Hyslop says Mr Lindhurst's motion lists five World Heritage sites but the Forth Road Bridge is the sixth. 

    She says these sites are to be "treasured".

    Edinburgh
    Image caption,

    Edinburgh

    The culture and tourism secretary says careful stewardship is required of these sites.

    She says the local development plans for Edinburgh sets out important policies.

    She says it is important that those living, working and visiting the city continue to enjoy Edinburgh's World Heritage site. 

  19. Alex Johnstone's funeral arrangementspublished at 13:08 Greenwich Mean Time 15 December 2016

    Mr Johnstone was a list MSP for North East ScotlandImage source, bbc
    Image caption,

    Mr Johnstone was a list MSP for North East Scotland

    For those who will be attending Alex Johnstone’s funeral tomorrow here is a map, external with directions to Glenbervie Church.

    Car parking is limited around the vicinity of the church, but some parking will be available in a nearby businesses’ car park (McFee of Glenbervie) and stewards will be in attendance.

    It has been announced that Mr Johnstone's funeral will be at Glenbervie Parish Church on Friday at noon.  

  20. There are threats to the World Heritage site in planning, housing and governance - Greens MSPpublished at 13:07 Greenwich Mean Time 15 December 2016

    Scottish Greens MSP Andy Wightman
    Image caption,

    Scottish Greens MSP Andy Wightman

    Scottish Greens MSP Andy Wightman says he is privileged to live in Edinburgh.

    Mr Wightman says there are threats to the World Heritage site in planning, housing and governance.

    He says "people live here, it's there home," and people are becoming concerned about the amount of properties that are no longer being used as primary residences.