Scottish income tax changes unveiled

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

Live Reporting

Craig Hutchison, Andrew Southwick, Nasim Asl and Catherine Lyst

Postpublished at 14:52 Greenwich Mean Time 14 December 2017
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Postpublished at 14:52 Greenwich Mean Time 14 December 2017
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'We are using the powers of the Scottish parliament'published at 14:51 Greenwich Mean Time 14 December 2017
Mr Mackay says: "The microphone amplifies what you say to the chamber."
He repeats his gag from yesterday about Scottish Labour spokespeople alluding to Kezia Dugdale and James Kelly.
Somewhat hypocritically given his opening reply, Mr Mackay shouts: "We are using the powers of the Scottish parliament, we are using them in full to protect the people of Scotland from Tory cuts."
He says he is proposing flat cash plus a capital increase for local government.
Mr Mackay says the SNP have supported local government and a range of other priorities.
Postpublished at 14:50 Greenwich Mean Time 14 December 2017
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Postpublished at 14:49 Greenwich Mean Time 14 December 2017
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Postpublished at 14:48 Greenwich Mean Time 14 December 2017
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'Growing frustration and discontent' - Richard Leonardpublished at 14:48 Greenwich Mean Time 14 December 2017
Scottish Labour leader Richard Leonard says there is a "growing mood of frustration and discontent towards the SNP government that have simply preceded over Tory austerity and added to it."
He claims the government are: "Cutting day to day spending by £134m".
Postpublished at 14:47 Greenwich Mean Time 14 December 2017
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Postpublished at 14:47 Greenwich Mean Time 14 December 2017
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Postpublished at 14:46 Greenwich Mean Time 14 December 2017
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Postpublished at 14:46 Greenwich Mean Time 14 December 2017
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Leonard calls for 'real and radical change, not tinkering around the edges'published at 14:46 Greenwich Mean Time 14 December 2017
Scottish Labour leader Richard Leonard says: "We in Scotland should be using the powers of our parliament to deliver an alternative (to austerity).
He calls for "real and radical change, not tinkering around the edges".
The Scottish Labour leader says putting on 1p on the highest rate of income tax does not cut it.
Mr Leonard says this Tory lite draft budget fails on all tests.
Postpublished at 14:45 Greenwich Mean Time 14 December 2017
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Postpublished at 14:45 Greenwich Mean Time 14 December 2017
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'For the majority of taxpayers this is the lowest taxed part of the UK'published at 14:45 Greenwich Mean Time 14 December 2017
Mr Mackay says: "For the majority of taxpayers this is the lowest taxed part of the UK."
He says Scotland is also the fairest part of the UK.
The finance secretary says: "Resource spending next year and for the next two years is going down."
He says to follow Tory tax policies, in addition to the block grant adjustment, would reduce resources £501m
Postpublished at 14:43 Greenwich Mean Time 14 December 2017
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'I'm very proud of this budget' - Derek Mackaypublished at 14:43 Greenwich Mean Time 14 December 2017
Image caption,
Finance Secretary Derek Mackay
Finance Secretary Derek Mackay argues that the "Biggest threat to Scotland and UK's economy is the Tory party."
He says: "It remains the case they (the Conservatives) want to raise less and spend more.
"It's just not possible.
"We have provided a balanced budget. I'm very proud of this budget."
He adds that the basic rate has been frozen, and that "80% will pay less".
Postpublished at 14:41 Greenwich Mean Time 14 December 2017
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Background: What exactly did the SNP pledge in the 2016 manifesto?published at 14:41 Greenwich Mean Time 14 December 2017
Here is the specific section on income tax.......
Image source, SNP
Tory MSP calls on finance secretary to apologise for breaking manifesto pledgepublished at 14:41 Greenwich Mean Time 14 December 2017
Mr Fraser says the Scottish government's total block grant is on track to increase by 1% 2017/18 and 2018/19 in real terms.
The Tory MSP says the tax rises are down to the SNP and no-one else.
He says the Scottish economy is projected to grow at a fraction of the UK's and that has led the SNP to put their hands into the pockets of the Scottish public.
Mr Fraser says budget means cuts for local goverment.
He calls on the finance secretary to apologise for breaking the promise on income tax in the SNP's manifesto.