Derek Mackay to lay out his first budget

Scottish Parliament - Anita Gould

Scotland’s Finance will lay out his first budget to MSPs today, which will outline the Scottish Government’s tax and spending priorities for the year.

The statement will follow today’s First Minister’s Questions.

Ahead of the statement, Mackay said his budget would focus on economic growth, tackling climate change and promoting “fairness”.

RELATED CONTENT

Scottish local authorities could face further cuts of £700m by end of parliament

SNP accused of “Tory tactics” on council cuts

“This is a historic budget, delivered in challenging economic and political times,” he said.

“The UK Government’s Autumn Statement was a missed opportunity to end austerity. It did not go far enough to get the economy back on track and lacked much needed investment in public services.”

Because the SNP no longer has an overall majority it will need the support of at least one opposition to pass the budget when it is voted on on Friday.

Scottish Labour and the Scottish Greens urged the Scottish Government to raise the top level of tax, while the Scottish Conservatives said raising taxes would put Scotland at “a competitive disadvantage”.

Scottish Labour leader Kezia Dugdale said: “The Nationalists claim to be a progressive party. If that is the case, they will use Holyrood’s historic powers to ask those with the broadest shoulders to pay more tax to raise money to tackle Scotland’s schools crisis.

“If Derek Mackay fails to do that, he is no better than a Tory Chancellor – and he will singlehandedly destroy any claim the SNP has to be a party of the progressive Left.”

Patrick Harvie MSP, co-convener and finance spokesperson for the Scottish Greens, proposed creating new tax rates to create a fairer system.

"The SNP must remember that they are a minority government once again, and that they must work together with others to pass their budget. If they’re willing to use that opportunity to tackle poverty and protect public services, we’ll respond constructively,” he said.

Speaking after a Scottish Conservative debate on taxation in Parliament yesterday, the party’s finance spokesman Murdo Fraser said the other parties formed a “high tax consensus” which showed the Conservatives were the most effective opposition.

"Our position is simple. Scottish taxpayers shouldn't have more cash taken out of their pay packets than people elsewhere in the UK,” he said.

"Not just because it is unfair, but also because it will put us at a competitive disadvantage.

"Higher taxes will be bad for our economy, bad for jobs, and will therefore reduce the sum of money available to the Scottish Government to pay for our NHS and education.”