Summary

  • Finance Secretary Derek Mackay announces income tax changes that will see higher earners pay more than elsewhere in the UK - and lower earners pay less

  • Mr Mackay announces a new tax band of 21p for those earning more than £24,000

  • The higher rate of tax will be increased from 40p to 41p and the top rate from 45p to 46p

  • A starter rate of 19p in the pound will also be introduced, Mr Mackay confirmed in his draft budget

  1. Air passenger dutypublished at 12:24 Greenwich Mean Time 14 December 2017

    Air passenger duty is charged on all flights from UK airportsImage source, ge
    Image caption,

    Air passenger duty is charged on all flights from UK airports

    Mr Harvie moves on to the government's policy on cutting Air Passenger Duty.

    Plans to replace air passenger duty with a discounted alternative were disrupted by legal issues.

    The Scottish government wants to replace Air Passenger Duty (APD) with a new devolved Air Departure Tax (ADT) in Scotland from April next year.

    However, it said plans to continue exempting journeys from airports in the Highlands and Islands required EU approval under state aid rules.

    It is understood that getting this approval could take longer than Brexit.

  2. Public sector pay raised by Harviepublished at 12:22 Greenwich Mean Time 14 December 2017

    patrick harvie

    Scottish Greens co-convener Patrick Harvie says public sector workers want to know if they will again face a real terms cut in pay.

    The first minister says the Scottish government has already committed to lifting the 1% public sector pay cap.

    Ms Sturgeon says the pay settlement must be fair and affordable and again says wait till this afternoon's budget for details.

  3. SNP MSP raises CAA ruling on HIV+ve constituentpublished at 12:21 Greenwich Mean Time 14 December 2017

    bob dorisImage source, bbc

    SNP MSP Bob Doris raises the issue of the Civil Aviation Authority not giving certification to become a commercial airline pilot to a constituent who is HIV+ve.

    Ms Sturgeon says the most up to date facts on HIV must be used and she says the CAA are looking to a rule change and she says she will write to the CAA.

  4. Background: Efforts to eradicate homelessness in Scotlandpublished at 12:19 Greenwich Mean Time 14 December 2017

    Media caption,

    Sleep in the Park raises millions to tackle homelessness

    Efforts to eradicate rough sleeping were boosted on Friday with the announcement that about 475 new homes are being made available for homeless people.

    About 275 permanent housing association and council properties are to be provided in Edinburgh through the EdIndex Partnership.

    Wheatley Group, Scotland's largest housing and care group, has also committed to up to 200 homes for rough sleepers in Glasgow and the central belt.

  5. Labour MSPs raises issue of an elderly woman with a burst stoma bagpublished at 12:18 Greenwich Mean Time 14 December 2017

    elaine smithImage source, bbc

    Labour MSP Elaine Smith raises a health and care issue about an elderly woman with a burst stoma bag.

    Ms Smith says that is not at all acceptable and asks for details to be passed to the health secretary.

  6. Leonard calls for the end of Scotland's homelessness crisispublished at 12:17 Greenwich Mean Time 14 December 2017

    richard leonardImage source, bbc

    Scottish Labour leader Richard Leonard highlights the emotional case of Hannabelle, who he says is a recovering addict and a victim of domestic abuse and has been stuck in unsuitable accommodation.

    Mr Leonard calls for the end of Scotland's homelessness crisis.

    Ms Sturgeon says Hannabelle's case is completely unacceptable.

    The first minister says the government is establishing a £50m fund to tackle homelessness and rough sleeping.

  7. Sturgeon highlights establishment of Homelessness Prevention and Strategy Grouppublished at 12:15 Greenwich Mean Time 14 December 2017

    Mr Leonard say we should welcome the work of the Homelessness Prevention and Strategy Group calling for funding to prevent rough sleeping over this winter.

    The Scottish Labour leader says the strategy group is fighting an uphill battle due to cuts to local government funding.

    He says last year things got worse

    nicola sturgeonImage source, bbc

    Ms Sturgeon says the government is increasing funding for affordable housing and she says she announced the establishment of the Homelessness Prevention and Strategy Group due to her concern about rough sleeping.

    The first minister has accepted all the group's recommendations and provided additional funding, she says.

  8. Postpublished at 12:15 Greenwich Mean Time 14 December 2017

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  9. Postpublished at 12:15 Greenwich Mean Time 14 December 2017

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  10. Background: New social houses being built 'dropped by a fifth'published at 12:13 Greenwich Mean Time 14 December 2017

    HousingImage source, Thinkstock

    According to the Herald on Tuesday, the number of new social houses being built in Scotland has plummeted by a fifth, the latest figures show.

    Scottish Labour, external’s housing spokeswoman Pauline McNeill branded the figures “desperately poor”.

    She said: “After a decade in power, the Nationalists have turned a housing shortage into a housing crisis, and these figures suggest the problem will only continue to get worse.

    The Scottish Government, externalhas previously pledged to build 35,000 social homes by 2021.

  11. Scottish Labour leader raises the issue of the 'housing crisis'published at 12:12 Greenwich Mean Time 14 December 2017

    richard leonardImage source, bbc

    Scottish Labour leader Richard Leonard raises the issue of the "housing crisis".

    Mr Leonard says this week it was revealed the government is some way off meeting its housing target.

    Ms Sturgeon says the goverrnment will meet the target of 50,000 afffordable homes over the lifetime of this parliament.

    She says £3bn will be allocated to build 50,000 affordable homes.

    The first minister says Labour managed to build six council house when it was last in power.

  12. Ms Sturgeon says Ms Davidson has been talking 'complete and utter nonsense'published at 12:11 Greenwich Mean Time 14 December 2017

    nicola sturgeon

    Ms Davidson says the SNP make promises to people on tax ahead of elections, and that the first minister said it is not right for anyone on the basic rate of income tax to pay more.

    How can Scottish workers ever trust the first minister again, she asks.

    Ms Sturgeon says Ms Davidson has been talking "complete and utter nonsense" and this will be revealed by the detail of the budget this afternoon.

    Seriously folks, join us from 1.30pm, with the kick off at 2pm, for extensive coverage of the draft budget.

    It is going to be rivetting.

  13. Davidson says there will be tax rises businesses don't wantpublished at 12:08 Greenwich Mean Time 14 December 2017

    ruth davidson

    Ms Davidson says business organisations have given the first minister a blunt warning against tax increases.

    But she says the first minister has just told businesses there will be tax rises they don't want.

    The first minister cites the Small Business Bonus and reveals it will be protected in the budget this afternoon.

  14. Sturgeon highlights £200m cut in real terms day to day spending next yearpublished at 12:06 Greenwich Mean Time 14 December 2017

    nicola sturgeonImage source, bbc

    Ms Davidson says her first question was from the direct words of the first minister in May.

    The Scottish Conservative leader says Ms Sturgeon will have to tell some people that she will break her promise on not raising their tax bills.

    The first minister says the budget will balance a number of priorities.

    Ms Sturgeon says Fraser of Allander have said there will be a £200m cut in real terms day to day spending next year.

    She says the proposals from Derek Mackay will protect the majority of tax payers.

  15. Background: Scottish income tax rises to be unveiledpublished at 12:05 Greenwich Mean Time 14 December 2017

    MoneyImage source, Getty Images

    BBC Scotland political editor Brian Taylor says he expects the 20p rate for lower earners to be frozen, but that there may be a new tax band created that would see those earning above about £30,000 pay more.

    The government has hinted that the top 45p rate of tax for those earning more than £150,000 will not be raised to 50p, as some opposition parties have called for, but may go up by a smaller amount.

    Business leaders have warned that Scotland cannot afford to be associated with higher taxation than other parts of the UK.

    But most people will pay no more tax than they do now - because the median salary in Scotland is £24,000.

  16. And we're off........published at 12:05 Greenwich Mean Time 14 December 2017

    Holyrood chamberImage source, bbc

    Scottish Conservative leader Ruth Davidson immediately looks forward to this afternoon's budget, and says when inflation is rising and living standards are under pressure it is not right to raise income tax for those on the basic rate.

    The first minister, to no-one's surprise, says Finance Secretary Derek Mackay will outline the draft budget from 2pm - and we'll have to wait until then for full details.

    Join us for extensive coverage.

  17. Postpublished at 12:00 Greenwich Mean Time 14 December 2017

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  18. First minister's questions is next............published at 12:00 Greenwich Mean Time 14 December 2017

    First minister's questions is next............Image source, PA/BBC
    Image caption,

    First minister's questions is next............

  19. Postpublished at 12:00 Greenwich Mean Time 14 December 2017

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  20. HMP Dumfries questionpublished at 11:59 Greenwich Mean Time 14 December 2017

    Labour MSP Colin Smyth
    Image caption,

    Labour MSP Colin Smyth

    Colin Smyth questionImage source, bbc