Summary

  • MSPs back the general principles of the Budget Bill, with 69 backing it and 56 voting against.

  • The debate followed the news the Greens have struck a deal with Derek Mackay

  • The say they have secured a "substantial package" of funding, including cash for councils, low-carbon capital investment and a contribution towards a "fairer pay" for the public sector

  • The Greens had previously indicated they could only support the budget if an additional £157m was given to councils

  • Talks had also been held with the Lib Dems, who were seeking more support for education and health along with backing for ferry services in the northern isles

  • The Conservatives and Labour have put down amendments for the stage one debate of the Budget Bill

  1. 'This year's budget must tackle the shameful growth in child poverty'published at 16:05 Greenwich Mean Time 31 January 2018

    Labour MSP ElaineImage source, bbc

    Labour MSP Elaine Smith says her party's budget plan is based on progressive taxation.

    Ms Smith says: "It is long past time the SNP took radical action to eradicate poverty."

    She says: "This year's budget must tackle the shameful growth in child poverty."

    The Labour Party backs the "Give Me Five" campaign for that reason.

    It calls on MSPs to ensure the 2018/19 budget and Scottish Government spending plans include a top-up of child benefit by £5 per week.

  2. Longest period of weak growth in 60 years, says Tory MSPpublished at 16:03 Greenwich Mean Time 31 January 2018

    Tory MSP Dean Lockhart says the UK government has control over monetary policy and interest rates, "which are at record lows".

    The Scottish government has control over enterprise policy and economic growth, "which is also at record lows", he says.

    Tory MSP Dean Lockhart
    Image caption,

    Tory MSP Dean Lockhart

    The most effective way of boosting tax revenue is by growing the economy, he argues.

    He calls for "urgent action" to address the longest period of weak growth in 60 years.

  3. SNP MSP attempts some light-hearted relief...................accusing Tories of being leftiespublished at 15:59 Greenwich Mean Time 31 January 2018

    Kenneth Gibson

    SNP MSP Kenneth Gibson jokes that leftists seem to have entered Ruth Davidson's party.

    There is "Brian 'Bolshevik' Whittle", "'Red' Rachael Hamilton", "Maurice 'the Menshevik' Corry" and the "real Marxist" Adam Tomkins, who once called for a Scottish Socialist Republic at a rally.

    "The impetuosity of youth. He was only 35 at the time."

  4. SUMMARY: What's the deal? Take a look........published at 15:55 Greenwich Mean Time 31 January 2018

    Derek Mackaya nd Patrick HarvieImage source, PA/Getty Images

    The deal between the Derek Mackay and the Greens will see:

    • an additional £170m going to local councils.
    • raise public sector pay for 75% of workers rather than 51%.
    • all public sector employees earning up to £36,500 will now receive a minimum 3% pay increase
    New Income tax rateImage source, bbc
    Image caption,

    New Income tax rate

    • increase he new higher rate threshold by 1% to £43,340, to address
    • an additional £10.5m to help fund inter-island ferries in Orkney and Shetland
  5. 'We will not play their game'published at 15:50 Greenwich Mean Time 31 January 2018

    Willie Rennie

    The Lib Dems have always sought to work with the government where possible on the budget, Mr Rennie says.

    "This year was different."

    He suggests the Scottish government had reneged on a commitment on lifeline ferries to get the support of constituency MSPs - referring to his colleagues Tavish Scott and Liam McArthur.

    He accuses the Scottish government "picking off remote and rural constituencies" for their "own devices".

    "We will not play their game."

  6. Lib Dems call for more mental health fundingpublished at 15:49 Greenwich Mean Time 31 January 2018

    Willie Rennie says the budget for mental health must be raised to £1.2bn to deal with "deep-seated problems" around CAMHS.

    10,000 young people have had their mental health treatment delayed in the last three years, he highlights.

    Mental health training must be embedded in other services, including the police and primary care, Mr Rennie argues.

  7. Meanwhile on BBC Scotland's Politics Scotland.....published at 15:46 Greenwich Mean Time 31 January 2018

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  8. Postpublished at 15:45 Greenwich Mean Time 31 January 2018

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  9. Postpublished at 15:44 Greenwich Mean Time 31 January 2018

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  10. Postpublished at 15:44 Greenwich Mean Time 31 January 2018

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  11. This budget does not deliver the transformational change needed says Renniepublished at 15:44 Greenwich Mean Time 31 January 2018

    Scottish Lib Dem leader Willie Rennie says this budget does not deliver the transformational change needed for Scotland.

    Mr Rennie says the Lib Dems argue for a modest penny on income tax to invest in education.

    Scottish Lib Dem leader Willie RennieImage source, bbc
    Image caption,

    Scottish Lib Dem leader Willie Rennie

    The Lib Dem MSP says there was no increase in the pupil equity fund last year.

    He says we are already behind and the budget has been frozen.

    Mr Rennie says 140,000 college places have been cut under the SNP.

  12. Local taxation reform must be considered next yearpublished at 15:42 Greenwich Mean Time 31 January 2018

    Patrick Harvie

    Mr Harvie suggests in the future, opposition parties should be called to give evidence to the finance committee.

    The proposals which may be taken up by government deserve to be subject to scrutiny, he argues.

    Noting many of the main arguments are on local government funding, Mr Harvie warns the Scottish government the Greens will not enter into negotiations next year unless local taxation reform is on the table.

  13. Local government cuts 'more than reversed' says Harviepublished at 15:40 Greenwich Mean Time 31 January 2018

    Labour MSP Colin Smyth
    Image caption,

    Labour MSP Colin Smyth

    Labour MSP Colin Smyth says much of the additional funding for the local government budget is for new services.

    What will the cuts be to local government budgets and how many staff will be lost, he asks.

    Patrick Harvie says the cuts have been "more than reversed".

    A redesign of income tax powers has made all this possible, he says.

    Nobody is talking about increases for basic rate tax payers, Mr Harvie says, adding the Greens have been "leading" on this area.

    Agreement is reached when opposition parties make use of the opportunities provided by minority government, he says.

    The SNP benches applaud at this.

    SNP benches applauding
  14. Harvie says Mackay's new £170m package for local government lets Greens back budgetpublished at 15:37 Greenwich Mean Time 31 January 2018

    Scottish Green Party co-convener Patrick Harvie says his party could not support a budget that included the government's policy on air passenger duty, which has been shelved for this year.

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

    Nor could he vote for a budget without low carbon policies and addressing public sector pay, he says.

    Mr Harvie calls for a restoration in the value of public sector pay, but he welcomes the progress announced today and says it allows his party to vote fo the budget today.

    Scottish Green Party co-convener Patrick HarvieImage source, bbc
    Image caption,

    Scottish Green Party co-convener Patrick Harvie

    However Mr Harvie calls for an above inflation rise for public sector workers.

    Local government faces a £157m real terms cut, says Mr Harvie, and he could not vote for a budget under those circumstances.

    However Mr Harvie says Mr Mackay's new £170m package announced a few moments ago is substantial and more than reverses the cut.

  15. Cultural change needed for effective scrutiny of future budgetspublished at 15:37 Greenwich Mean Time 31 January 2018

    Bruce Crawford

    Moving onto the new budget process, Bruce Crawford notes the Scottish government will set out its broad financial plans after the UK government's spring settlement.

    This will help the parliament in adopting a longer-term outlook of fiscal constraints, he says.

    Subject committees will be given guidance in due course, he adds.

    A cultural change as well as a procedural change to rise to the challenge of effective scrutiny is required, he concludes.

  16. Economic forecasts are frequently wrong, says finance convenerpublished at 15:33 Greenwich Mean Time 31 January 2018

    Mr Crawford says the budget is significantly reliant on forecasts and it is inevitably these will be wrong, as they frequently are.

    The Finance and Constitution Committee says that is why the Scottish government has the power to borrow £300m annually through the fiscal framework.

    Everyone must rise to the challenge of using the new powers that have come to Scotland wisely he says.

    Mr Crawford says the commitee's draft budget report is intended to support that process.

  17. Economic forecastspublished at 15:31 Greenwich Mean Time 31 January 2018

    WomanImage source, Getty Images
    • The Scottish Fiscal Commission published its first economic and fiscal forecasts, external
    • The economy is predicted to grow 0.7% this year and next, and 2.2% in 2022
    • Wages will increase by 2%, 2.3% and 3.1% in 2017, 2018 and 2022, respectively
    • Employment is forecast to grow 1.6% this year, but will slow to 0.6% in 2018 and 0.1% by 2022
    • Productivity growth will remain slow this year (0.2%), before speeding up slightly to 0.5% in 2018 and 1% in 2022
  18. Scotland's budget depends on tax revenuepublished at 15:29 Greenwich Mean Time 31 January 2018

    Finance and Constitution Committee convener Bruce Crawford
    Image caption,

    Finance and Constitution Committee convener Bruce Crawford

    Bruce Crawford begins his contribution to the debate as Finance and Constitution Committee convener.

    The size of Scotland's budget will depend on growth in tax revenues, he says.

    We need at least a similar level of growth in revenues from Scottish taxes to protect the Scottish government's budget, he states.

    There is risk is the economic modelling is wrong, he warns, stating that if the OBR is more optimistic than reality, Scotland will lose out.

    If the OBR is pessimistic, the reverse is true, he adds.

    "As you can see, it's all pretty simple."

  19. Postpublished at 15:27 Greenwich Mean Time 31 January 2018

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  20. Scottish Labour sets out 'radical' new tax proposalspublished at 15:25 Greenwich Mean Time 31 January 2018

    Richard Leonard said his party's "radical" proposals could end austerityImage source, Reuters
    Image caption,

    Richard Leonard said his party's "radical" proposals could end austerity

    Scottish Labour has put forward budget proposals to raise and spend an extra £960m with radical changes to taxation.

    Finance Secretary Derek Mackay is to put his draft budget plans, which include a redrawing of the income tax system, to a vote of MSPs on Wednesday.

    Labour has now set out proposals that would alter the system even further, with higher taxes and spending.

    Leader Richard Leonard said "radical" use of Holyrood's tax powers could "end the failed experiment of austerity".

    However, Mr Mackay said the "fantasy figures" were "riddled with blunders" and would actually raise far less money than Labour claim, while the Scottish Conservatives accused both parties of "hammering" taxpayers.

    Read more here.