Thread by @theSNP

📺 Watch the statement by Finance Secretary @_KateForbes - introducing our #ScotBudget to build a fairer, greener and more prosperous Scotland.

⏰ Tune in now on scottishparliamentlive.tv, or follow this thread for live updates.

@_KateForbes 📣 @_KateForbes: "Presiding Officer, the Budget presented to Parliament today will tackle the climate emergency, will support economic recovery and reduce inequalities.

It also comes at a crucial moment for Scotland." #ScotBudget

@_KateForbes KF: "It is the first Budget of this parliamentary term.

It is also the first Budget of this partnership government – it has been developed in cooperation with the Scottish Green Party..." #ScotBudget

@_KateForbes KF: "...so it delivers on key commitments made in the Bute House Agreement - from making bus travel free for young people, to doubling the Scottish Child Payment." #ScotBudget

@_KateForbes KF: "As a result of that partnership, and in the year of COP26, this Budget redoubles our efforts to meet our emissions reduction targets, in a fair and just way that creates economic opportunities..." #ScotBudget

@_KateForbes KF: "...harnessing the many opportunities for green jobs, prosperity and greater well-being.

PWC’s Green Barometer and Lloyd Bank’s Green Growth Index both conclude that Scotland is the top ranked part of the UK for green jobs and green economic prosperity." #ScotBudget

@_KateForbes KF: "This Budget supports Scotland at a point of transition – balancing our response to the immediate pressures of Covid and the cost of living with action for the longer term." #ScotBudget

@_KateForbes KF: "If, due to necessity, my last two Budgets have been shaped by our immediate experiences of Covid, today’s Budget aims to lift our eyes to the future, while of course remaining vigilant to the effects of new variants." #ScotBudget

@_KateForbes KF: "This is a transitional Budget, as people, businesses and services get back on their feet." #ScotBudget

@_KateForbes KF: "We cannot leave anybody behind in our determination to increase prosperity, so the Budget directly contributes to deliver on our national mission to end child poverty - doubling the Scottish Child Payment and investing in employability to get people into work." #ScotBudget

@_KateForbes KF: "Government can never deliver on these ambitions alone, and so we will harness a collaborative approach across all areas of Scottish life – public and private, national and local – building on the renewed approach to partnership seen through the pandemic." #ScotBudget

@_KateForbes KF: "I have also had to make difficult choices in this year’s tax and spending plans – largely due to no confirmed Covid-related funding coming from UK Government, despite the obvious, ongoing impacts of the pandemic on public services, households and business." #ScotBudget

@_KateForbes KF: "Combined with the pressures of inflation and rising costs, and the imperative for Government to act and intervene, this Budget has had to make choices." #ScotBudget

@_KateForbes KF: "And, as the Finance and Public Administration Committee highlighted in their pre-Budget report, there will be further, difficult choices further ahead, for Government and Parliament." #ScotBudget

@_KateForbes KF: "While this Budget lays the groundwork for a green economic recovery from COVID-19, we must be clear that the UK Government’s spending review hindered rather than helped us on this mission." #ScotBudget

@_KateForbes KF: "In practice, our day-to-day funding next year is significantly less compared to the current year, with Covid funding having been removed, at a time when we undeniably need to invest in the economy and help public services to recover." #ScotBudget

@_KateForbes KF: "This means the Budget cannot deliver the resources all our partners will want and, let me be clear, there are areas where I would have wished to go further." #ScotBudget

@_KateForbes KF: "But, today I present a Budget which addresses key priorities, targets resources for low income households, and paves the way for future investment over the life of this Parliament. It is a Budget of choices." #ScotBudget

@_KateForbes KF: "It is also a transitional Budget, maximising funding where we can to deliver key priorities now but also paving the way for future fiscal choices." #ScotBudget

@_KateForbes KF: "Alongside today’s Scottish Budget and Medium Term Financial Strategy, I am publishing a framework for the Resource Spending Review, which itself will be published in May 2022 and will set out multi-year spending plans across all areas of government activity." #ScotBudget

@_KateForbes KF: "The framework consultation sets out our principles and approach, and I look forward to contributions from Members across this Chamber." #ScotBudget

@_KateForbes KF: "Presiding Officer, let me now update Parliament on the economic and fiscal context, and take a moment, first, to thank the Scottish Fiscal Commission for the forecasts and reporting which inform and underpin this Budget." #ScotBudget

@_KateForbes KF: "Supply chain bottlenecks, labour market shortages, inflationary pressures and rising energy prices are all placing extra pressure on businesses and households trying to recover from the impact of the pandemic." #ScotBudget

@_KateForbes KF: "The Fiscal Commission forecasts a level of long-term economic damage to the Scottish economy from COVID-19 of around -2%, similar to the OBR’s forecast for the UK economy." #ScotBudget

@_KateForbes KF: "This means the long-term impact of Brexit on the economy will be worse than that caused by COVID-19, with the OBR attributing a 4% long-term reduction in living standards due to the UK’s exit from the European Union." #ScotBudget

@_KateForbes KF: "The impact of Brexit has not been felt equally across the UK. Latest figures from the ONS show that Northern Ireland is the only part of the UK where the economy has recovered nearly to pre-pandemic levels." #ScotBudget

@_KateForbes KF: "This is not surprising, given that Northern Ireland has in effect remained in the EU's single market for goods due to the NI Protocol and benefited from increased trade with Ireland." #ScotBudget

@_KateForbes KF: "While all other parts of the UK have seen a negative impact of Brexit, the scale of that is three times higher in Scotland than in London." #ScotBudget

@_KateForbes KF: "We said that Brexit would be bad for Scotland, that it would have a differential impact on our economy and, as is clear, it is, which is having a direct impact on our budget." #ScotBudget

@_KateForbes KF: "Be under no illusion, the Budget I’m presenting today is smaller than it would be if it wasn’t for the impact of Brexit on our economy, a Brexit that has been imposed on Scotland against the express wish of the people that live here." #ScotBudget

@_KateForbes KF: "It is also clear that Brexit and UK Government policy on immigration continue to affect Income Tax receipts in Scotland." #ScotBudget

@_KateForbes KF: "Based on the latest SFC and OBR forecasts, Scottish Income Tax receipts are estimated to be £190 million lower than the corresponding Block Grant Adjustment in 2022-23. There are a number of factors that may explain this." #ScotBudget

@_KateForbes KF: "Both the SFC and OBR state that the continued uncertainty around the pandemic means the uncertainty around forecasts may be even greater than usual." #ScotBudget

@_KateForbes KF: "The final position on the performance of Income Tax revenues in 2022-23 will only be known once outturn data is published in 2024." #ScotBudget

@_KateForbes KF: "Strong earnings growth in London and the South East, particularly among the highest earners, means that our budget is being reduced even while earnings growth in Scotland has increased every year since tax devolution prior to the pandemic." #ScotBudget

@_KateForbes KF: "This issue is accounted for in the Welsh Fiscal Framework, but not in Scotland, and we are clear that it must form part of the upcoming Fiscal Framework Review. Rising inequality in England should not see Scotland’s budget reduced." #ScotBudget

@_KateForbes KF: "Ultimately, without full control over economic policy and immigration – which the UK Government refuses to give us – we do not have full powers to mitigate the effects of Brexit, secure a green economic recovery, and raise the revenues our public services need." #ScotBudget

@_KateForbes KF: "Despite Brexit, there are reasons for optimism for the Scottish economy.

The Fiscal Commission now forecast our economy will recover to pre-pandemic levels by April–June 2022, almost two years earlier than forecast at the previous Scottish Budget in January." #ScotBudget

@_KateForbes KF: "And although they are expecting a peak unemployment rate of 4.9% at the end of this year – reflecting the unwinding of the Furlough scheme – this is far below the 7.6% forecast at the time of the previous Scottish Budget." #ScotBudget

@_KateForbes KF: "I have taken these forecasts, and the overall state of our economy, into account when setting tax policy for the year ahead.

I am proud of the consultative approach we take to taxation in Scotland." #ScotBudget

@_KateForbes KF: "We consulted widely in advance of the Budget and met with a broad range of stakeholders, in keeping with our commitment to transparency and open government." #ScotBudget

@_KateForbes KF: "We will maintain our progressive approach, which we will reinforce when we publish Scotland’s first Framework for Tax later this month." #ScotBudget

@_KateForbes KF: "And of course I recognise the ongoing need for stability and certainty for taxpayers at this time, as well as targeted support, as a foundation for the recovery.

That is what my tax package delivers today." #ScotBudget

@_KateForbes KF: "For businesses, over the last two years I have delivered 100% rates relief for the retail, hospitality, leisure and aviation sectors - and unlike England and Wales we did not cap the level of support available at any time during that period." #ScotBudget

@_KateForbes KF: We were also the first government to offer the certainty of a rates relief in 2021-22, when businesses needed it most." #ScotBudget

@_KateForbes KF: "On 1 July 2021 when retail, hospitality and leisure businesses in England starting paying rates, their equivalents continued to receive 100% uncapped relief in Scotland for a further 9 months." #ScotBudget

@_KateForbes KF: "Those decisions, along with our unprecedented decision to cut the poundage at the peak of the pandemic, have saved businesses in Scotland around £1.6 billion through the rates system alone since 1 April 2020." #ScotBudget

@_KateForbes KF: "Recognising that we have offered the most generous rates relief anywhere in the UK for the last two years, and the importance of phasing the return of rates liabilities..." #ScotBudget

@_KateForbes KF: "...rates relief for the retail, hospitality and leisure sectors will continue at 50% for the first 3 months of 2022-23, capped at £27,500 per ratepayer. This will prevent a cliff edge for businesses in those sectors, saving them a further £56 million in 2022-23." #ScotBudget

@_KateForbes KF: "I will also continue to offer the lowest Non-Domestic Rates poundage in the UK, at 49.8p, delivering a below inflation uplift for the fourth year in a row - in addition to the UK’s most competitive package of annual reliefs worth £745 million." #ScotBudget

@_KateForbes KF: "I recognise the calls to support small businesses and our high streets. A small business, with a rateable value of less than £15,000 on a Scottish high street will continue to pay no rates for the entirety of next year, irrespective of what sector they are in." #ScotBudget

@_KateForbes KF: "A new build in one of our towns will pay no rates for the first 12 months after occupation, through the Business Growth Accelerator. Tenants occupying certain long-term empty properties on our high streets will pay no rates, if it meets the criteria." #ScotBudget

@_KateForbes KF: "Our competitive rates reliefs are directly seeking to revitalise our high streets." #ScotBudget

@_KateForbes KF: "On Income Tax, from day one this Government's priority has been to make the tax system fairer and more progressive, and to protect low and middle income taxpayers." #ScotBudget

@_KateForbes KF: "With increases in the cost of living and rising fuel prices likely to impact lower income families more than other households, I believe these principles are more important than ever." #ScotBudget

@_KateForbes KF: "I can therefore confirm that:

📌 Income Tax rates in 2022-23 will remain unchanged.
📌 The starter and basic rate bands will increase in line with inflation.
📌 The higher and top rates will remain frozen at their current levels." #ScotBudget

@_KateForbes KF: "Our progressive income tax policy means the majority of Scottish taxpayers will continue to pay less Income Tax than if they lived elsewhere in the UK, while those who earn more will pay more." #ScotBudget

@_KateForbes KF: "It maintains spending power in households who need our support the most, while the freeze to the higher and top rates will only affect the top earning 10%, yet raise crucial revenues for our public services from those who can most afford it." #ScotBudget

@_KateForbes KF: "On Land and Buildings Transaction Tax, we will maintain both residential and non-residential rates and bands at their current levels in 2022-23, and will shortly launch a call for evidence and views on changing the Additional Dwelling Supplement." #ScotBudget

@_KateForbes KF: "On Scottish Landfill Tax, we will increase both the standard and lower rates of tax from 1 April, to maintain consistency across the UK and support our ambitions for a more circular economy." #ScotBudget

@_KateForbes KF: "In sum, with our devolved tax policies we are delivering a more progressive approach to tax. We are supporting the recovery." #ScotBudget

@_KateForbes KF: "We are generating the revenues we need to invest in:

📌 our NHS recovery plan and our new National Care Service
📌 real-terms budget protection for our police
📌 the doubling of the "game-changing" Scottish Child Payment to £20 a week." #ScotBudget

@_KateForbes KF: "The continued threat posed by coronavirus will remain the primary focus of the Scottish Government in the immediate term – not least in the face of the risk of further variants." #ScotBudget

@_KateForbes KF: "Today I can set out our plans to provide increased funding to respond to the pressures created by the pandemic, and ensure that everyone can get the care they need in a time, place and way that suits." #ScotBudget

@_KateForbes KF: "We are doing that despite the absence of Covid consequentials from the UK Government, which means we must absorb these additional costs within our overall Budget." #ScotBudget

@_KateForbes KF: "This Budget provides record funding of £18 billion for Health and Social Care, not only to address immediate pressures on across the NHS, but also to ensure frontline funding which directly supports patient services increases by at least £2.5 billion by 2026-27." #ScotBudget

@_KateForbes KF: "As we set out in our manifesto, we are delivering on our commitment to pass on all health and care consequentials in full, with additional spend in excess of £1 billion in health and social care." #ScotBudget

@_KateForbes KF: "Members across this chamber will be aware of the staffing difficulties being experienced in the care sector, with Brexit and the ending of freedom of movement once again a major factor." #ScotBudget

@_KateForbes KF: "The transfer to local government for social care includes an additional £200m, which will deliver the £10.50 minimum wage for social care staff..." #ScotBudget

@_KateForbes KF: "...and support the recruitment and retention of care staff that are so vital to the health and care system, as we begin the process of creating a new National Care Service over the course of this Parliament." #ScotBudget

@_KateForbes KF: "We also reaffirm our commitment to #KeepthePromise, which will see the establishment during 2022-23 of an initial £50 million Whole Family Wellbeing Fund to provide person-centred holistic support for children and their families." #ScotBudget

@_KateForbes KF: "This funding will build during this session, as capacity and capability for transformational change builds in the sector.

This Budget also deepens our partnership with local government." #ScotBudget

@_KateForbes KF: "It delivers a settlement for local government that recognises the leadership role councils play in their communities, and their part in delivering a national recovery." #ScotBudget

@_KateForbes KF: "It provides increased resources for social care and education, ensuring the continued delivery of vital local services across Scotland – while working to increase the fiscal autonomy and power of local government..." #ScotBudget

@_KateForbes KF: "...and put more say over how local budgets are raised in local hands." #ScotBudget

@_KateForbes KF: "This includes record increased investment in teacher recruitment, supporting the recruitment of at least 3,500 teachers and 500 classroom assistants over this Parliament." #ScotBudget

@_KateForbes KF: "My investment plans for public services and action across portfolio are directed by three priority themes:

🤝 Tackling inequalities
🏴󠁧󠁢󠁳󠁣󠁴󠁿 Supporting Scotland’s economy
🌱 Ending Scotland’s contribution to climate change" #ScotBudget

@_KateForbes KF: "And so, the Budget backs our national mission to tackle child poverty, and to make Scotland truly a land of opportunity for everyone, with action across government portfolios." #ScotBudget

@_KateForbes KF: "The most immediate and direct way to tackle poverty is by putting more money into the pockets of people who need it most, and ensuring a decent standard of living, especially for children." #ScotBudget

@_KateForbes KF: "This budget invests in increasing family incomes, driving down the cost of living." #ScotBudget

@_KateForbes KF: "It provides £200 million for the Scottish Attainment Challenge – the next instalment of our commitment to provide £1 billion over this Parliament to tackle the poverty-related attainment gap." #ScotBudget

@_KateForbes KF: "Over £4 billion across social security and welfare payments, providing vital support for low income families, carers and disabled people – including £1.95 billion to start delivery of the Adult Disability Payment in 2022-23." #ScotBudget

@_KateForbes KF: "£41 million for the Scottish Welfare Fund, helping people in times of crisis - and £80.2 million in Discretionary Housing Payments." #ScotBudget

@_KateForbes KF: "£110 million to provide free bus travel for young people from January 2022 - putting more money in their pockets, and encouraging more use of public transport." #ScotBudget

@_KateForbes KF: "The Budget provides over £72 million for the continued expansion of free school lunches – providing lunches for all children in P1-5 and special schools, and supporting the infrastructure required to roll-out lunches to all primary children." #ScotBudget

@_KateForbes KF: "There is £544 million to deliver free funded early learning and childcare for three and four year olds, and two year olds from lower income households, while taking forward work to expand that to one year olds from low income households within this Parliament." #ScotBudget

@_KateForbes KF: "And it provides £831 million for affordable housing – progressing our commitment to deliver 110,000 affordable, energy efficient homes across the next decade, leveraging further private sector investment and supporting employment in the construction sector." #ScotBudget

@_KateForbes KF: "Together, these measures can make a huge difference.

But we can and must do more, despite the challenges in the public finances. " #ScotBudget

@_KateForbes KF: "I know there is consensus in this Parliament for greater action to tackle child poverty.

It is right that Government stretches every sinew to do so, and that means we have to make hard choices elsewhere in the Budget where necessary." #ScotBudget

@_KateForbes KF: "We do so in order to fund the most ambitious anti-poverty measure anywhere in the UK, and to respond to the UK Government’s decision to scrap the £20 uplift to universal credit." #ScotBudget

@_KateForbes KF: "This Budget therefore delivers not just on the pledge in the Programme for Government to double the Scottish Child Payment to £20 per week - but, as the First Minister announced last week, we will bring forward that commitment to April 2022." #ScotBudget

@_KateForbes KF: "Presiding Officer, that is nearly £200 million in next year’s Budget going directly to lift children across Scotland out of poverty." #ScotBudget

@_KateForbes KF: "I will turn next to economic recovery. I know that when our economy is prospering, there is more public revenues to reinvest.

So, we cannot talk about public services without ensuring we are supporting businesses to recover." #ScotBudget

@_KateForbes KF: "This Budget invests in Scotland’s ambition of being a wellbeing economy: an economy that enables successful business activity, entrepreneurship and innovation, is environmentally sustainable and supports places to thrive." #ScotBudget

@_KateForbes KF: "We know that the biggest challenges facing businesses are labour shortages, rising costs and inflationary pressures." #ScotBudget

@_KateForbes KF: "Our Budget seeks to respond to each of these issues in the round – to invest in skills and employability, to make catalytic investments which regenerate areas and boost trade and keep costs low." #ScotBudget

@_KateForbes KF: "That will be a long-term process and I will shortly publish the Government’s National Strategy for Economic Transformation, which will provide vision and leadership for the longer term. But it is also a process that starts now." #ScotBudget

@_KateForbes KF: "Today’s Budget provides over £205 million for the Scottish National Investment Bank, helping it deliver against its missions of:

📌 supporting Scotland’s transition to net zero
📌 building communities and promoting equality
📌 harnessing innovation." #ScotBudget

@_KateForbes KF: "Scotland’s geographical diversity is one of our economic strengths.

I can confirm investment of £51 million in rural services and islands, including activities linked to the National Islands Plan and introducing a new Islands Bond Fund." #ScotBudget

@_KateForbes KF: "There are few challenges as acute as labour shortages. We will invest over £225 million to Skills Development Scotland to support a range of national training interventions." #ScotBudget

@_KateForbes KF: "The Budget allocates nearly £2 billion to Scotland’s universities and colleges – delivering high quality education and training." #ScotBudget

@_KateForbes KF: "More generally, I am providing more than £370 million to support our enterprise agencies and nearly £50 million to VisitScotland, to strengthen key sectors to promote innovation - and to achieve sustained success in new and emerging markets." #ScotBudget

@_KateForbes KF: "These actions, taken together with the package of non-domestic rates measures I have already announced, provide a strong platform in this Budget for Scotland’s economy, now and into the future." #ScotBudget

@_KateForbes KF: "Our hosting of COP26 showcased what we are already doing in Scotland and the depth of commitment that exists to go further." #ScotBudget

@_KateForbes KF: "I have worked closely with colleagues in the Scottish Green Party to shape today’s Budget.

I welcome their support and their constructive challenge." #ScotBudget

@_KateForbes KF: "Through this Budget, we will lay the groundwork to protect and restore our natural environment, decarbonise our homes, industries and transport, and position ourselves as a global leader in renewable energy, and green and digital technology." #ScotBudget

@_KateForbes KF: "There is no doubt that meeting our ambitious emissions reduction targets will require transformative action across all sectors of the economy and across society.

It will not be an easy task, but this Government is up for the challenge." #ScotBudget

@_KateForbes KF: "The Just Transition to net zero needs investment now, and today’s Budget sets out almost £2 billion of low carbon capital investment in Scotland’s public infrastructure – supporting the decarbonisation of our homes and buildings, transport and industry." #ScotBudget

@_KateForbes KF: "We will also continue to work with the private sector to mobilise investment behind the low carbon transition." #ScotBudget

@_KateForbes KF: "This Budget will lay the groundwork to secure a green recovery, and follow through on our commitment to implement the recommendations of the Just Transition Commission across this Parliament." #ScotBudget

@_KateForbes KF: "Today I can confirm the first £20 million of our 10-year, £500m Just Transition Fund for the North East and Moray." #ScotBudget

@_KateForbes KF: "£366 million for energy efficiency, and low carbon and renewable heat – cutting emissions, making homes warmer, tackling fuel poverty and creating jobs across Scotland." #ScotBudget

@_KateForbes KF: "£60 million for large scale heat decarbonisation projects and investment of £53 million across a range of large-scale, industrial decarbonisation projects - including £20 million for Energy Transition Fund projects in the north east." #ScotBudget

@_KateForbes KF: "There is £23.5 million for our Green Jobs Fund - helping businesses create green employment through investment." #ScotBudget

@_KateForbes KF: "We're making a record investment of £150m in infrastructure to make walking, wheeling and cycling safer - and £1.4 billion to maintain, improve and decarbonise Scotland’s rail network." #ScotBudget

@_KateForbes KF: "£43 million to drive forward Scotland's circular economy - and £53 million to restore Scotland’s precious natural environment, including our internationally important peatlands, addressing the twin crises of climate change and nature loss." #ScotBudget

@_KateForbes KF: "We're investing £25 million this year to start work on transforming farming and food production in Scotland to be world leading in sustainable and regenerative agriculture..." #ScotBudget

@_KateForbes KF: "...and a further £69.5 million to be invested in woodland creation and sustainable management of Scotland’s woodlands – enabling an increase of our woodland creation target to 15,000 hectares." #ScotBudget

@_KateForbes KF: "Climate change requires global action, driven by local and national commitment to deliver the changes that are needed.

Today’s Budget demonstrates that commitment exists here." #ScotBudget

@_KateForbes KF: "This Government – working in partnership with the Scottish Greens – is absolutely committed to meeting our statutory climate change targets and delivering the net zero society we not only want, but need, to see.

The future of our planet demands it." #ScotBudget

@_KateForbes KF: "Presiding Officer, I want to lastly turn to the issue of pay.

The principle of fair work is a cornerstone of this Government’s economic approach, and I have placed that principle at the centre of my decisions about public sector pay." #ScotBudget

@_KateForbes KF: "I recognise the challenges presented by inflation and rising living costs, and also the huge effort the public sector has made in responding to the pandemic." #ScotBudget

@_KateForbes KF: "Our pay policy for next year therefore focuses on those on low incomes, continuing our progressive approach..." #ScotBudget

@_KateForbes KF: "...and guaranteeing an inflationary uplift of at least:

📌 £775 to those earning up to £25,000
📌 £700 to those earning between £25,000 and £40,000
📌 and £500 to those earning above £40,000." #ScotBudget

@_KateForbes KF: "Indeed the policy goes further.

In October, the Government announced an uplift in pay for social care workers to £10.02 per hour." #ScotBudget

@_KateForbes KF: "Today I can announce a minimum wage floor of £10.50 per hour across all bodies covered by the pay policy, with specific funding to apply this for all social care staff." #ScotBudget

@_KateForbes KF: "Today’s Budget is a budget of choices, and we have chosen to tackle child poverty, to invest in the transition and to boost economic prosperity." #ScotBudget

@_KateForbes KF: "It delivers on our manifesto promises – more teachers, more funding for our police, and record investment in our health and social care services, as we stand united against the impacts of Covid." #ScotBudget

@_KateForbes KF: "It's a Budget for households facing a cost of living crisis, targeting resources at low income families and making bold choices to address the devastating impact of child poverty." #ScotBudget

@_KateForbes KF: "It is a Budget for our businesses and workers, with further financial support for enterprises now - and a clear plan to achieve longer term prosperity." #ScotBudget

@_KateForbes KF: "And it's a Budget for a net zero future, that once again shows Scotland leading from the front, in the defining mission of our generation.

And Presiding Officer, I commend this Budget to Parliament and to the people of Scotland." #ScotBudget