Summary

  • Finance Secretary Derek Mackay delivers the draft Budget 2019-20.

  • Income tax rates will remain the same as last year with the higher rate threshold being frozen.

  • However, the starter and lower rate threshold will be increased by inflation.

  • A no deal Brexit could affect the Scottish government's spending plans, the minister tells MSPs.

  1. SNP will work with other parties to bring UK government downpublished at 15:13 Greenwich Mean Time 12 December 2018

    Lib Dem MSP Tavish Scott
    Image caption,

    Lib Dem MSP Tavish Scott

    Lib Dem MSP Tavish Scott asks what the SNP will do to bring on a vote of no confidence in the UK government.

    Mr Russell says a motion of no confidence is unlikely to succeed without the support of the official opposition, Labour.

    I would be keen that this happens and the SNP stands ready for it, but we have to find a way to do it together he says.

  2. Postpublished at 15:10 Greenwich Mean Time 12 December 2018

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  3. What will the Scottish government do to make a 'People's Vote' more likely?published at 15:10 Greenwich Mean Time 12 December 2018

    Green MSP Ross GreerImage source, bbc
    Image caption,

    Green MSP Ross Greer

    Green MSP Ross Greer welcomes the "absolute legal clarity" of the ECJ ruling that allows the UK government to unilaterally revoke Article 50.

    Mr Greer asks what the Scottish government is doing to ensure a "People's Vote" becomes more likely and to facilitate it here.

    Mr Russell pays tribute to those involved in securing the ECJ ruling, including Mr Greer.

    The Brexit secretary says it would be a UK referendum run according to UK electoral law.

  4. 'These a very dangerous times for our country, economy and community'published at 15:06 Greenwich Mean Time 12 December 2018

    Labour MSP Neil Findlay
    Image caption,

    Labour MSP Neil Findlay

    Labour MSP Neil Findlay says "these a very dangerous times for our country, economy and community."

    For the first time in 1000 years, the UK government has been held in contempt of parliament and the prime minister is "hopeless", he says.

    "Her level of delusion is only matched by her level of incompetence," Mr Findlay states.

    The Labour MSP insists this goes "way beyond Brexit," and calls for a general election.

    Mr Russell highlights his support for a general election and adds Mr Findlay's points are "well made".

  5. Tory MSP takes opportunity to wish May well, the Brexit secretary does not!published at 15:02 Greenwich Mean Time 12 December 2018

    Tory MSP Adam TomkinsImage source, bbc
    Image caption,

    Tory MSP Adam Tomkins

    Tory MSP Adam Tomkins says: "Everyone here will understand today is a difficult day with the prime minister under unmitigated pressure."

    Mr Tomkins wishes Theresa May well.

    The Tory MSP asks if Mr Russell agrees that one way to avoid no deal would be to back Theresa May's deal.

    Mr Russell says to Mr Tomkins that he is not satisfied that he has squared his "intellect with his conduct" and he adds he does not think the Tory MSP believes a word of what he says.

    The Brexit Secreatary adds that: "My thoughts are not with the prime minister and her suffering today, my thoughts are with EU nationals who have had months of agony over this matter."

    He says his thoughts are also with farmers, fishermen and the businessmen of Scotland.

  6. Remaining in EU, single market membership or general election?published at 14:58 Greenwich Mean Time 12 December 2018

    Mike Russell

    The prime minister must go back to the EU and request an extension to Article 50, the Brexit secretary insists.

    This would create the space needed for "calm thought and wider agreement", he suggests.

    Mr Russell says remaining in the EU, via another referendum, would be the best option.

    Short of this, we should remain members of the single market he argues.

    The third possibility is a general election and SNP MPs would back this in the Commons, the cabinet secretary adds.

    Mr Russell will make a further statement next week on preparations for a no deal, but he warns that the impact would not be fully mitigatable.

  7. Background: Brexit ruling: UK can cancel decision, EU court sayspublished at 14:55 Greenwich Mean Time 12 December 2018

    The European Court of JusticeImage source, ECJ
    Image caption,

    The case was heard by all 27 European judges last month

    The European Court of Justice has ruled the UK can cancel Brexit without the permission of the other 27 EU members.

    The ECJ judges ruled this could be done without altering the terms of Britain's membership.

    A group of anti-Brexit politicians argued the UK should be able to unilaterally halt Brexit, but they were opposed by the government and EU.

    The decision comes a day before MPs were due to vote on Theresa May's deal for leaving the EU.

    Read more here.

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  8. Russell: The option is there to revoke or extend Article 50published at 14:52 Greenwich Mean Time 12 December 2018

    Mr Russell says the option is there to revoke or extend Article 50.

    The Brexit secretary insists the UK must not be "plunged into a no deal scenario".

    He says politicians must come together to remove the threat of a no deal.

  9. Russell calls for May to resignpublished at 14:50 Greenwich Mean Time 12 December 2018

    Mr Russell

    Mr Russell says the prime minister has persistently proffered false choices.

    By removing Scotland and the UK from the single market and customs union, "the deal will make every one of us poorer", he insists.

    The first steps to resolving a constitutional crisis like this is for the prime minister to resign the Brexit secretary argues.

    But we need for than that, he adds.

    Mr Russell says the second step is for all other parties to coalesce round an alternative to avoid a no deal.

  10. Background: Theresa May to face vote of no confidence from Tory MPspublished at 14:48 Greenwich Mean Time 12 December 2018

    Media caption,

    Theresa May's statement - in full. Warning this video contains falsh photography

    UK Prime Minister Theresa May faces a vote of confidence in her leadership later after 48 of her Conservative MPs called for one to be held.

    But a defiant Mrs May vowed to contest the vote "with everything I have got".

    She warned that a new prime minister would be faced with the choice of "delaying or even stopping Brexit".

    A majority of Tory MPs have publicly said they will back the PM in the vote, which runs for two hours from 18:00 GMT, but it is a secret ballot.

    A result is expected fairly quickly after the voting finishes.

  11. Decision to delay Brexit deal vote 'disgraceful and contemptuous' - Russellpublished at 14:47 Greenwich Mean Time 12 December 2018

    Mr Russell says the UK government's word "cannot be trusted".

    The EU wants a watertight backstop on Norther Ireland because it does not trust the UK government, he insists.

    The Brexit secretary says the decision by Theresa May to delay the vote on her deal was "disgraceful and contemptuous".

  12. Russell: UK government in 'state of collapse'published at 14:44 Greenwich Mean Time 12 December 2018

    Brexit Secretary Michael Russell
    Image caption,

    Brexit Secretary Michael Russell

    Brexit Secretary Michael Russell says right up until early on Monday, the UK government was adamant the vote on the Brexit deal was to go ahead.

    Monday morning was a watershed moment and it revealed the UK government is in a "state of collapse", he says.

    "It's a government out of ideas, out of talent, out of time and needing to be put out of office."

  13. Postpublished at 14:43 Greenwich Mean Time 12 December 2018

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  14. Background: Sturgeon: Brexit vote delay is 'political cowardice'published at 14:42 Greenwich Mean Time 12 December 2018

    Media caption,

    Sturgeon: SNP would support no confidence motion

    Scottish First Minister Nicola Sturgeon has called for a motion of no confidence in the UK government after the Commons vote on Brexit was delayed.

    Ms Sturgeon accused Prime Minister Theresa May of "political cowardice" for calling off Tuesday's vote of MPs.

    The UK government was facing defeat "by a significant margin" in the Commons.

    Mrs May said she would now speak to European leaders and look at ways of "empowering" MPs over the "backstop" plan for the Northern Irish border.

    No date has been set for when the "meaningful vote" of MPs will be held.

  15. Brexit statement...................published at 14:38 Greenwich Mean Time 12 December 2018

    Brexit Secretary Mike RussellImage source, bbc

    Brexit Secretary Mike Russell will now give the Scottish government's response to the latest Westminster machinations over the withdrawal deal.

    Prime Minister Theresa May called off Tuesday's crucial vote on her Brexit deal so she could go back to Brussels and ask for changes to it.

    European Council President Donald Tusk said the remaining 27 EU countries would not "renegotiate" the deal.

    Now Mrs May faces a vote of no confidence by Tory MPs - though a majority have publicly said they would back the PM this evening.

  16. Background: Ruth Davidson backs Theresa May ahead of confidence votepublished at 14:35 Greenwich Mean Time 12 December 2018

    Getty ImagesImage source, PA
    Image caption,

    Ms Davidson praised the prime minister's determination to "deliver for the country"

    Scottish Conservative leader Ruth Davidson has said Theresa May has her "full support" ahead of a vote on the prime minister's future.

    Ms Davidson, who is on maternity leave after giving birth in October, tweeted that Mrs May has "cojones of steel".

    Ten of her 13 Scottish Conservative MPs - including Scottish Secretary David Mundell - have said they will back the prime minister in the confidence vote.

    Mr Mundell said he was confident Mrs May would win and continue in the job.

    Opponents of the prime minister are angry at the Brexit deal she has struck, which they argue will keep the UK tied to the EU indefinitely with no say over its rules and unable to strike trade deals around the world.

    Anger has focused on the so-called "backstop" to prevent the return of a physical border in Northern Ireland.

    Tory MSPs
    Image caption,

    Happier times - Fresh from a successful 2017 general election, Ruth Davidson showed off the new group of Scottish Tory MPs

  17. Coming up Brexit and the budget...............published at 14:26 Greenwich Mean Time 12 December 2018

    Derek Mackay will be presenting his third draft budget as Scottish finance secretaryImage source, PA
    Image caption,

    Derek Mackay will be presenting his third draft budget as Scottish finance secretary

    It's a huge afternoon at Holyrood, with the Scottish draft budget and a statement on Brexit (and probably the no confidence vote).

    We'll bring you extensive coverage of both throughout today, with analysis and reports, as well as all the social media reaction.

    First up that statement from Brexit Secretary Mike Russell, which begins in just a moment.

    Then it’s budget time. Join us for extensive coverage and analysis from 3.25pm until 5pm.

    BrexitImage source, PA/Getty Images
  18. Postpublished at 14:22 Greenwich Mean Time 12 December 2018

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  19. Scottish Budget: What about local government funding?published at 14:20 Greenwich Mean Time 12 December 2018

    CouncilsImage source, bbc

    Local government has been crying out for some extra funding- the government insists it has been fair to councils in previous years, but umbrella body Cosla says councillors have "no options left" for savings and need some extra cash.

    Graham Sharp from the Accounts Commission told the local government committee this morning: "The numbers are quite clear, and I think our figures are consistent with the SPICe numbers as well, and we reported over the four year period that local government funding reduced in real terms by 6.92% compared to Scottish government funding in general of 1.65%."

    To ease this, there might be some movement towards atourist tax- a local levy on hotels and overnight accommodation in tourist-heavy areas to help pay for local services. The government has thus far been edgy about whether this could hurt businesses and visitor numbers, but haven't ruled anything out.

  20. Postpublished at 14:19 Greenwich Mean Time 12 December 2018

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