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| Extra Scottish government fund to help councils cover UK tax hike | |
| (7 days later) | |
| Finance Secretary Shona Robison has presented her government's budget bill in the parliament | Finance Secretary Shona Robison has presented her government's budget bill in the parliament |
| Holyrood ministers are to give councils an extra £144m to help offset a UK government rise in employers' National Insurance. | Holyrood ministers are to give councils an extra £144m to help offset a UK government rise in employers' National Insurance. |
| Finance Secretary Shona Robison said she aimed to cover 60% of the reported costs across the public sector. | Finance Secretary Shona Robison said she aimed to cover 60% of the reported costs across the public sector. |
| She said the funding boost for local authorities was equivalent to a 5% increase in council tax, and would help avoid "inflation-busting" rises in council charges. | She said the funding boost for local authorities was equivalent to a 5% increase in council tax, and would help avoid "inflation-busting" rises in council charges. |
| Council body Cosla estimated in November that the National Insurance increase would directly cost local authorities £265m. | Council body Cosla estimated in November that the National Insurance increase would directly cost local authorities £265m. |
| Robison's announcement came as the Scottish government's Budget for 2025-26 passed its first parliamentary vote. | Robison's announcement came as the Scottish government's Budget for 2025-26 passed its first parliamentary vote. |
| The tax and spending plans are expected to be made into law later this month following two more stages of scrutiny from MSPs. | The tax and spending plans are expected to be made into law later this month following two more stages of scrutiny from MSPs. |
| Labour Chancellor Rachel Reeves announced last year that the rate of employer National Insurance contributions is to increase from 13.8% to 15% in April. | Labour Chancellor Rachel Reeves announced last year that the rate of employer National Insurance contributions is to increase from 13.8% to 15% in April. |
| The threshold at which employers have to start paying the contributions is also being lowered from £9,100 to £5,000. | The threshold at which employers have to start paying the contributions is also being lowered from £9,100 to £5,000. |
| Chancellor Rachel Reeves is introducing a hike in employer National Insurance contributions | Chancellor Rachel Reeves is introducing a hike in employer National Insurance contributions |
| The Scottish government estimates it will need about £550m to cover the increased costs for public sector workers, rising to £750m when indirect employees such as those in childcare, higher education or social care are included. | The Scottish government estimates it will need about £550m to cover the increased costs for public sector workers, rising to £750m when indirect employees such as those in childcare, higher education or social care are included. |
| SNP ministers have been told to expect about £300m in compensation from the Treasury. This figure is based on the Barnett formula – designed to give devolved nations a proportionate share of spending in England. | SNP ministers have been told to expect about £300m in compensation from the Treasury. This figure is based on the Barnett formula – designed to give devolved nations a proportionate share of spending in England. |
| Addressing MSPs, Robison said Scotland should not be "punished" for deciding to spend more on its public service, which is proportionally larger and better paid relative to the UK as a whole. | Addressing MSPs, Robison said Scotland should not be "punished" for deciding to spend more on its public service, which is proportionally larger and better paid relative to the UK as a whole. |
| The finance secretary described the proposed compensation from the Treasury as "unacceptable" and said it should "fully fund the actual costs for Scotland's public sector". | The finance secretary described the proposed compensation from the Treasury as "unacceptable" and said it should "fully fund the actual costs for Scotland's public sector". |
| Announcing the extra funding for local authorities, Robison cautioned against large council tax rises. | Announcing the extra funding for local authorities, Robison cautioned against large council tax rises. |
| A Holyrood freeze on the levy is to be lifted by the government in April, with some councils reportedly considering double-digit increases. | A Holyrood freeze on the levy is to be lifted by the government in April, with some councils reportedly considering double-digit increases. |
| The Treasury had said it had to make difficult financial decisions as it faced a £20bn black hole in public finances. | The Treasury had said it had to make difficult financial decisions as it faced a £20bn black hole in public finances. |
| A spokesperson said previously that the Scottish government had received a record £47.7bn budget "as part of support provided in relation to changes to employer National Insurance". | A spokesperson said previously that the Scottish government had received a record £47.7bn budget "as part of support provided in relation to changes to employer National Insurance". |
| Budget debate | Budget debate |
| The minority SNP administration has done deals with the Greens and Liberal Democrats to ensure its Budget passes. Alba's sole MSP is also supporting it. | The minority SNP administration has done deals with the Greens and Liberal Democrats to ensure its Budget passes. Alba's sole MSP is also supporting it. |
| Labour will not vote against the plans, leaving only the Conservatives in opposition to them. | Labour will not vote against the plans, leaving only the Conservatives in opposition to them. |
| Robison, introducing the Budget bill to parliament, said: "At the start of this year the first minister said there is nothing wrong in Scotland that can't be fixed by what is right in Scotland. | Robison, introducing the Budget bill to parliament, said: "At the start of this year the first minister said there is nothing wrong in Scotland that can't be fixed by what is right in Scotland. |
| "This budget is all about putting the resources in place to do just that." | "This budget is all about putting the resources in place to do just that." |
| Among her government's key proposals are plans to in effect scrap the two-child benefit cap, though no funds have been allocated to that ambition in the coming financial year. | Among her government's key proposals are plans to in effect scrap the two-child benefit cap, though no funds have been allocated to that ambition in the coming financial year. |
| Ministers also say they will provide a winter fuel payment for every pensioner household in Scotland next year. | Ministers also say they will provide a winter fuel payment for every pensioner household in Scotland next year. |
| She said the Budget would deliver record funding for health and social care, more than £15bn for councils and "progressive" tax choices that help low-income and middle-income families as well as "hard-pressed" businesses. | She said the Budget would deliver record funding for health and social care, more than £15bn for councils and "progressive" tax choices that help low-income and middle-income families as well as "hard-pressed" businesses. |
| Scottish Conservative MSP Craig Hoy took aim at Holyrood's "failed cosy socialist consensus" | Scottish Conservative MSP Craig Hoy took aim at Holyrood's "failed cosy socialist consensus" |
| Scottish Conservative finance spokesperson Craig Hoy accused Holyrood's other parties of conforming to a "failed cosy socialist consensus". | Scottish Conservative finance spokesperson Craig Hoy accused Holyrood's other parties of conforming to a "failed cosy socialist consensus". |
| He added: "A consensus that's wedded to high tax and low growth. And which stands in stark contrast to our commons sense Budget plans." | He added: "A consensus that's wedded to high tax and low growth. And which stands in stark contrast to our commons sense Budget plans." |
| He criticised the Scottish government for not replicating the UK government's business rates relief south of the border. | He criticised the Scottish government for not replicating the UK government's business rates relief south of the border. |
| Robison said the SNP administration's small business bonus scheme was the most generous of its kind in the UK. | Robison said the SNP administration's small business bonus scheme was the most generous of its kind in the UK. |
| 'Nowhere near good enough' | 'Nowhere near good enough' |
| Scottish Labour finance spokesperson Michael Marra described the Budget as "more of the same" and "nowhere near good enough". | Scottish Labour finance spokesperson Michael Marra described the Budget as "more of the same" and "nowhere near good enough". |
| However, he said his party would not vote against the plans because Labour "desperately" wanted Scottish ministers to improve frontline services using record funding provided by the Treasury. | However, he said his party would not vote against the plans because Labour "desperately" wanted Scottish ministers to improve frontline services using record funding provided by the Treasury. |
| Scottish Green finance spokesman Ross Greer criticised Labour's decision not to back the tax and spending plans. | Scottish Green finance spokesman Ross Greer criticised Labour's decision not to back the tax and spending plans. |
| He said: "I can list a long list of achievements for people and planet as a result of the Greens engagement in this budget, compared to a Labour Party that got everything it asked for out of this budget, because it simply asked for nothing." | He said: "I can list a long list of achievements for people and planet as a result of the Greens engagement in this budget, compared to a Labour Party that got everything it asked for out of this budget, because it simply asked for nothing." |
| Scottish Liberal Democrat leader Alex Cole-Hamilton said his party would "always act responsibly and try to find common ground where it exists". | Scottish Liberal Democrat leader Alex Cole-Hamilton said his party would "always act responsibly and try to find common ground where it exists". |
| But he added that support for the Budget does not equal support for the Scottish government, which he said had "failed" the country. | But he added that support for the Budget does not equal support for the Scottish government, which he said had "failed" the country. |
| The Budget passed the stage one ballot by 74 votes to 30, with 21 abstentions. | The Budget passed the stage one ballot by 74 votes to 30, with 21 abstentions. |