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Scottish government secures budget deal with Greens Scottish government secures budget deal with Greens
(about 2 hours later)
The Scottish government has secured a deal with the Greens to pass its budget proposals ahead of a Holyrood vote.The Scottish government has secured a deal with the Greens to pass its budget proposals ahead of a Holyrood vote.
Finance Secretary Derek Mackay had been in negotiations with opposition leaders to find backing for his plans, which include changes to the tax system.Finance Secretary Derek Mackay had been in negotiations with opposition leaders to find backing for his plans, which include changes to the tax system.
A spokesman for the Scottish Greens said they had secured "significant additional funds" as part of the deal. The deal with the Greens will see an additional £170m going to local councils.
Mr Mackay will inform MSPs of the details from about 14:50 ahead of the stage one vote. And proposals to raise public sector pay will cover 75% of workers rather than 51%.
The Greens said they had secured a "substantial package" of funding in exchange for their support, including cash for councils, low-carbon capital investment and a contribution towards a "fairer pay settlement for public sector workers". The agreement means all public sector employees earning up to £36,500 will now receive a minimum 3% pay increase - which Mr Mackay said would cover 80% of NHS staff and the majority of teachers.
Scottish Greens co-convenor Patrick Harvie told BBC Scotland: "We believe Derek Mackay is going to announce changes to the draft budget that will be enough for us to say we have protected local services, protected public sector pay and achieved a shift on local carbon investment and other priorities. An anomaly in Mr Mackay's draft budget proposals that would have seen a relatively small number of higher earners paying less tax rather than more will also be addressed.
"That is the kind of results that you get when you sit down and negotiate properly, bring positive, constructive ideas to bear." This will be done by changing the new higher rate threshold to £43,348 rather than the £44,274 that had originally been proposed - a move which Mr Mackay said would raise an additional £55m in taxation.
The Greens had previously indicated they could only support the budget if an additional £157m was given to councils. The increased council funding includes an additional £10.5m to help fund inter-island ferries in Orkney and Shetland.
Anomaly addressed The minority SNP government had needed to win the support of at least one other party in the Scottish Parliament to pass its budget.
It is understood that an anomaly in Mr Mackay's original income tax plans that would have seen those earning £50,000 actually pay less tax rather than more will be addressed as part of the deal. Mr Mackay outlined details of the agreement in the Scottish Parliament after the Greens confirmed a deal had been reached earlier on Wednesday.
Scottish Green co-convener Patrick Harvie said the extra council funding "more than reverses all of the £157m of local government cuts proposed by the SNP".
He added: "Last year we stopped the cuts; this year we've pushed the government even further and delivered a real-terms increase in funding, including a fair contribution towards the additional pressures councils are facing.
"While other parties continue to posture from the sidelines, Greens are making Scotland fairer."
Talks had also been held with the Lib Dems, who were seeking more support for education and health along with financial backing for ferry services in Orkney and Shetland, but an agreement could not be reached.Talks had also been held with the Lib Dems, who were seeking more support for education and health along with financial backing for ferry services in Orkney and Shetland, but an agreement could not be reached.
However, BBC Scotland political editor Brian Taylor said he expected more money for the ferries to now be included in the budget regardless - which could be enough to win the backing Lib Dem MSPs Liam McArthur and Tavish Scott, who represent Orkney and Shetland respectively. However, additional funding for the ferries will be included in the budget regardless - which could be enough to win the backing of Lib Dem MSPs Liam McArthur and Tavish Scott, who represent Orkney and Shetland respectively.
The agreement between the Scottish government and the Greens covers all three stages of the budget process, meaning Mr Mackay now has backing for his plans in full.
Talks went down to the wire, with Green co-convener Patrick Harvie revealing he had stayed in contact via wi-fi even while taking part in a finance committee session about Brexit on Wednesday morning.Talks went down to the wire, with Green co-convener Patrick Harvie revealing he had stayed in contact via wi-fi even while taking part in a finance committee session about Brexit on Wednesday morning.
The minority SNP government needed the support of at least one other party in the Scottish Parliament in order to pass its budget.
The Greens also backed last year's budget after securing a package worth a total of £220m in extra spending, including £160m for local authorities.The Greens also backed last year's budget after securing a package worth a total of £220m in extra spending, including £160m for local authorities.
Mr Mackay said his proposals for the forthcoming financial year would "reverse Tory cuts, deliver support for the economy and increase health spending by £400m".Mr Mackay said his proposals for the forthcoming financial year would "reverse Tory cuts, deliver support for the economy and increase health spending by £400m".
And he said the budget would provide "stability, sustainability and stimulus" for the economy and services.And he said the budget would provide "stability, sustainability and stimulus" for the economy and services.
Mr Mackay's draft budget, which was published in December, outlined plans for a new tax band of 21p for those earning more than £24,000.Mr Mackay's draft budget, which was published in December, outlined plans for a new tax band of 21p for those earning more than £24,000.
The higher rate of tax would be increased from 40p to 41p and the top rate from 45p to 46p, while a starter rate of 19p in the pound would also be introduced.The higher rate of tax would be increased from 40p to 41p and the top rate from 45p to 46p, while a starter rate of 19p in the pound would also be introduced.
Mr Mackay said the move to a five-band income tax system would mean no one earning less than £33,000 in Scotland will pay more tax than they do now. Mr Mackay said the income tax proposals meant about 55% of taxpayers in Scotland would pay less than they would elsewhere in the UK.
But the Greens had urged him to go further in order to raise more money for public services. What have the other opposition parties had to say?
The Conservatives and Labour have put down amendments for the stage one debate of the budget bill, with the Tories noting regret over tax increases and Labour saying the changes "do not raise enough revenue or redistribute enough wealth". Scottish Conservative finance spokesman Murdo Fraser accused the Greens of "falling sweetly into line", and caricatured the party as a "wholly owned subsidiary" of the SNP which was "taking orders from head office".
He also claimed the budget could be summed up as: "Pay more, get less".
His Scottish Labour counterpart, James Kelly, said the budget "falls well short of what is required."
Mr Kelly added: "The grubby deal that has been announced today by Derek Mackay, the Green-SNP deal, just doesn't cut it. Scotland's communities have been sold short by the SNP and Greens today."
And Liberal Democrat leader Willie Rennie said the budget did not provide the "transformational change" that Scotland needs.