Scottish Budget for 2019-20 unveiled

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.

Live Reporting

Craig Hutchison and Louise Wilson

Postpublished at 14:17 Greenwich Mean Time 12 December 2018
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
Scottish Budget: How will the money be spent?published at 14:14 Greenwich Mean Time 12 December 2018
Image source, Thinkstock/PA
Image caption,
Derek Mackay is expected to focus on health and education
Health is likely to feature in Mr Mackay's speech in a big way, with the government keen to underline its commitment to funding the NHS. Expect a row over the amount of money being passed on in "Barnett consequentials" from Westminster as a result of spending south of the border.
Education will also get a look in, oft quoted as it is as the government's "top priority". Will there be extra money going direct to schools, like the Pupil Equity Fund?
Postpublished at 14:10 Greenwich Mean Time 12 December 2018
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
Scottish Budget: What's going to happen?published at 14:06 Greenwich Mean Time 12 December 2018
Philip Sim
BBC Scotland political reporter
Income tax
Well, to start with, in his UK Budget in October, the chancellor announced that the tax-free allowance (and thus the point at which people start paying income tax) was rising to £12,500. That applies in Scotland, too.
What doesn't apply though was his move to raise the higher-rate threshold (HRT) to £50,000. And Mr Mackay has previously indicated that he has no intention of passing on such a tax break for higher earners.
The Fraser of Allander Institute has modelled a number of potential approaches, external, and suggest that matching the UK HRT would cost about £280m, while freezing it in place would raise an extra £60m for spending - with that money coming out of the pay cheques of higher earners.
Image source, bbc
At present, it seems like Mr Mackay will raise the thresholds by the current rate of inflation, at the most. It's a sort of "steady as she goes" approach when you look just at the Scottish budget, but in the wider context it does mean the gap between the regimes north and south of the border is growing.
This means the government in Edinburgh brings in more money to be spent on public services, but it also means those earning more money are stumping up more than they would if they lived in England or Wales.
The Fraser of Allander Institute calculates that raising the Scottish higher rate threshold by the rate of inflation only will see people earning £50,000 in Scotland pay £1,350 more than they would if they lived south of the border.
And that's just income tax - there are also National Insurance Contributions (NICs) to think of, which drop from 12% to 2% at theUKhigher rate threshold. That means any earnings that fall into the gap in between the Scottish and rUK HRTs have an overall (or marginal) tax rate of 53%.
Postpublished at 14:04 Greenwich Mean Time 12 December 2018
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
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 2
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 2
Postpublished at 14:03 Greenwich Mean Time 12 December 2018
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
Background: Scottish budget to be set out 'under Brexit shadow'published at 14:00 Greenwich Mean Time 12 December 2018
Image source, bbc
Image caption,
Long-term infrastructure projects are set to play a part in Derek Mackay's budget announcement
Scottish Finance Secretary Derek Mackay is to set out his tax and spending plans for the coming year at Holyrood "under the shadow" of Brexit.
Mr Mackay will make his draft budget announcement on Wednesday afternoon.
He said he would "protect essential public services and boost our economy" despite the UK's "chaotic approach to Brexit which hangs over our economy".
However, opposition parties have warned ministers that they will need to work hard to get the plans through a vote.
The Greens have refused to enter formal talks about supporting the minority SNP administration until they see progress on local government finance reform, and the Lib Dems have pulled out of negotiations altogether.
- Scottish budget: What's going to happen?
- Scottish budget negotiations stall
Portfolio questions: Health and sportpublished at 13:54 Greenwich Mean Time 12 December 2018
Image source, bbc
MSPs will now quiz health and sport ministers during portfolio questions.
click here for what they'll be asking. , external
Coming up in the chamber.................published at 13:40 Greenwich Mean Time 12 December 2018
Image 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.
Image source, PA/Getty Images
After portfolio questions, at 2.40pm, Brexit Secretary Mike Russell will make his statement.
Then it’s budget time. Join us for extensive coverage and analysis from 3.25pm until 5pm.
Tory MSP Gordon Lindhurst will then lead a member’s debate marking the Korean War.
Postpublished at 12:30 Greenwich Mean Time 12 December 2018
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
Postpublished at 12:29 Greenwich Mean Time 12 December 2018
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
Postpublished at 12:28 Greenwich Mean Time 12 December 2018
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
Postpublished at 12:26 Greenwich Mean Time 12 December 2018
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
Back to Westminster...................published at 12:24 Greenwich Mean Time 12 December 2018
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
Postpublished at 12:23 Greenwich Mean Time 12 December 2018
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
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 2
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 2
Meanwhile at Holyrood.........published at 12:22 Greenwich Mean Time 12 December 2018
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
Postpublished at 12:21 Greenwich Mean Time 12 December 2018
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
Postpublished at 12:20 Greenwich Mean Time 12 December 2018
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
Postpublished at 12:19 Greenwich Mean Time 12 December 2018
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
Postpublished at 12:18 Greenwich Mean Time 12 December 2018
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