:00:20. > :00:26.Hello there and a very warm welcome to the Scottish parliament here at
:00:27. > :00:30.Holyrood. Its budget day, the finance secretary will set out the
:00:31. > :00:34.details of his spending plans this afternoon but also his proposals on
:00:35. > :00:38.new tax powers in place for the first time. Of course, some of those
:00:39. > :00:41.topics may arise and questions to the First Minister. Let's cross to
:00:42. > :00:48.the chamber and my colleague Andrew care. Brian, thank you. Welcome to
:00:49. > :00:51.the chamber. John Swinney, the Education Secretary has just sat
:00:52. > :00:57.down finishing general questions. Here is the Conservative leader,
:00:58. > :01:02.Ruth Davidson. In gauge ready to take forward the Government's
:01:03. > :01:05.project for Scotland. We're used to watching budget U-turns after they
:01:06. > :01:07.have been given, but it's quite something to seize something falling
:01:08. > :01:11.apart before it is even been published. The SNP Government has
:01:12. > :01:16.been telling us for months that it will press ahead with this flagship
:01:17. > :01:20.plan to raid council budget to paper and a fund. Now, a few hours before
:01:21. > :01:24.the most important budget in this Parliament's history, we cured that
:01:25. > :01:29.policy has been dumped. Is this not a shambles, First Minister? I do
:01:30. > :01:36.concede that Tories know quite a lot about shambles. The chamber does not
:01:37. > :01:41.have too long to wait until Derek Mackay outlines the Scottish
:01:42. > :01:46.Government's budget. It is a budget that will deliver in the fool on the
:01:47. > :01:49.commitments we have made two extra investment in our schools to tackle
:01:50. > :01:54.the attainment gap and raise standards in our schools. It's also
:01:55. > :01:57.a budget that will deliver fairness for local Government services.
:01:58. > :02:02.Overall, it is a budget that will ensure we invest in our economy,
:02:03. > :02:07.protect public services and ensure fair treatment for householders. So
:02:08. > :02:11.I think people across the chamber, no matter how much they might like
:02:12. > :02:13.to moan about the budget, will have two welcome it when they hear it
:02:14. > :02:20.this afternoon. APPLAUSE
:02:21. > :02:26.It's a bit late to say wait until 2:30pm. It is on the front pages of
:02:27. > :02:29.today's papers. I don't know if the First Minister has taken the time to
:02:30. > :02:33.speak to anyone in Koestler who was at that meeting on Tuesday because
:02:34. > :02:39.if she had, I am in no doubt that she would confirm that this story in
:02:40. > :02:43.today's press is 100% true. But let me say here, if the SNP is going to
:02:44. > :02:51.dump this plan, then good. Because local communities were right, they
:02:52. > :02:54.were absolutely right, to say no to a national Government wanting to
:02:55. > :03:01.snatch local funding. But here is the thing, here is the thing that
:03:02. > :03:04.many people will be asking today, back in Septemberback in September,
:03:05. > :03:10.all of the opposition parties in this Parliament sent a crystal clear
:03:11. > :03:14.message to the Government telling it to ditch this proposal. And you
:03:15. > :03:17.would think that something that put us and the Greens on the same side
:03:18. > :03:21.of the argument might have been a warning shot that there was a
:03:22. > :03:25.problem. And yet, this Government ignored Parliament. The ignored
:03:26. > :03:27.councils and they have only climbed down out of the last minute because
:03:28. > :03:33.they have been told it will not work. Everyone else this coming, so
:03:34. > :03:36.why didn't they? I thought the comedy turn it out and use was
:03:37. > :03:41.normally reserved for Willie Rennie. It seems there is a new income but
:03:42. > :03:45.in that post today. Can I just checked, presiding Officer, that I
:03:46. > :03:49.have Ruth Davidson's position correct. I think what I'm hearing
:03:50. > :03:54.her saying is this to the Scottish Government, how dare you dump a plan
:03:55. > :04:00.that we absolutely demands that you don't? That appears to be Ruth
:04:01. > :04:06.Davidson's position today. When the budget is outlined in a couple of
:04:07. > :04:08.hours' time, what Derek Mackay will outline is the absolute
:04:09. > :04:13.determination of this Government to do what we promised we would do it,
:04:14. > :04:16.invest more money on schools to raise standards, to help teachers
:04:17. > :04:21.and to close the attainment gap. And what the chamber will also hear is a
:04:22. > :04:25.budget that delivers fairness for local Government services and I
:04:26. > :04:31.think when the chamber does hear the budget, some of the claims and
:04:32. > :04:34.accusations that we have been killing in recent days from --
:04:35. > :04:41.hearing in recent days, will appear rather silly. When she talks about
:04:42. > :04:44.claims and accusations linking local Government funding to the attainment
:04:45. > :04:49.fund, does she mean those given by her deputy who said, we got a
:04:50. > :04:54.mandate to raise an additional ?100 million per year through our council
:04:55. > :04:57.tax reforms specifically for raising educational attainment? Because that
:04:58. > :05:01.sounds quite specific to me. But the real answer today, all this chaff
:05:02. > :05:05.aside, is that they thought they could make councils pay for a
:05:06. > :05:10.Scottish Government policy and councils told them to take a running
:05:11. > :05:14.jump. So now we have two shoon, despite their complaints and a long
:05:15. > :05:18.list of grievances, that Mr Mackay is able to find a spare ?100 million
:05:19. > :05:23.down the back of his stuff to pay for the attainment fund himself
:05:24. > :05:27.unless, of course, the plan is to lock an extra ?100 million off the
:05:28. > :05:33.councils central Government grant. Who is now playing for it? Is it the
:05:34. > :05:35.councils or the Government? I am confused at this line of
:05:36. > :05:39.questioning. I can't work out whether she wants us to do something
:05:40. > :05:45.or if she doesn't want us to do something. We don't have long to
:05:46. > :05:48.wait to hear it this budget being outlined and I do think when we hear
:05:49. > :05:53.it being outlined, Ruth Davidson will look back on her line of
:05:54. > :05:56.questioning today, particularly that last question, and concludes that it
:05:57. > :06:01.probably was not be more sensible line of questioning to have pursued.
:06:02. > :06:05.This budget will deliver on the promise we made to get extra
:06:06. > :06:10.investment into schools, it will also deliver fairness for local
:06:11. > :06:13.Government and it will respect local democracy and accountability. I
:06:14. > :06:16.would have thought each and every one of these aspects of the budget
:06:17. > :06:20.would be things that people across this chamber would welcome. I
:06:21. > :06:24.certainly hope that will be the case. The budget that Derek Mackay
:06:25. > :06:29.will outline in just over two hours' time is a budget I am extremely
:06:30. > :06:36.proud to outline for this Government and I hope the entire chamber gets
:06:37. > :06:39.behind it. Sounds an awful lot like instead of taking the money out of
:06:40. > :06:44.councils' front pocket, you will dig it out of the hip pocket instead.
:06:45. > :06:48.This morning's headlines make it pretty clear that the very moment we
:06:49. > :06:51.needed Scottish Government in control, instead we have one that is
:06:52. > :06:57.distracted and utterly adrift. One which has... One which has allowed
:06:58. > :07:03.us to fall behind the rest of the UK in 25 out of 30 key economic
:07:04. > :07:07.indicators. This is deterring investment because of the threat of
:07:08. > :07:11.a second independent referendum which tries to spin its way out of a
:07:12. > :07:15.rise in unemployment by pretending that the rises in unemployment is
:07:16. > :07:20.not happening. Presiding Officer, the spin and the drift needs to end
:07:21. > :07:24.because what we need right now, more than ever, is a Government with a
:07:25. > :07:29.real focus on the economy using the powers that this Parliament now has
:07:30. > :07:35.two create new jobs, not deterring skilled workers with the highest
:07:36. > :07:39.taxes anywhere in the UK. So the First Minister is right about one
:07:40. > :07:43.thing. It is deserted time in two and a half hours' time. This
:07:44. > :07:46.Government is either for keeping Scotland competitive so that we can
:07:47. > :07:49.grow the economy or it is for taxing people more and putting a block on
:07:50. > :07:54.growth. The First Minister cannot have it both ways, so which is it?
:07:55. > :07:56.Nobody watching this will have any idea what on earth Ruth Davidson is
:07:57. > :08:04.asking me. LAUGHTER
:08:05. > :08:09.I don't think she knows. Totally confused and shambolic. You always
:08:10. > :08:12.know when Ruth Davidson is drowning at First Minister's Questions
:08:13. > :08:16.because she gets onto an independence referendum. It is the
:08:17. > :08:20.straw that Ruth Davidson keeps cutting out. As I have to say it is
:08:21. > :08:24.a bit ironic that she talks about economic uncertainty on the very day
:08:25. > :08:28.we see a story in the media, and she's very fond of citing stories in
:08:29. > :08:31.the media, that the UK Government is being advised by its own EU
:08:32. > :08:37.ambassador that it will take ten years to get a new deal with the EU
:08:38. > :08:40.in place. That is the economic uncertainty that is being created
:08:41. > :08:47.for businesses across this country and it is entirely... It is entirely
:08:48. > :08:50.on the Tories' watch. But let's get back to the budget. I think when
:08:51. > :08:55.Ruth Davidson here's Derek Mackay's budget later on, she will look back
:08:56. > :08:59.at the start of that long and winding and confused question she
:09:00. > :09:04.asked me and realise how misinformed and ill informed it was. This is not
:09:05. > :09:07.about taking money from local services, this is about investing in
:09:08. > :09:11.local services and that will be the hallmark of the budget this
:09:12. > :09:16.afternoon. But let me take you back to the core issue here and that is
:09:17. > :09:21.raising attainment in our schools. I have made absolutely clear the
:09:22. > :09:24.priority I attach to that, the Deputy First Minister attaches to
:09:25. > :09:28.that and this entire Government attaches to that and when we see the
:09:29. > :09:31.budget this afternoon, what the chamber will see and what Scotland
:09:32. > :09:35.will see is a budget that matches the investment to the ambition we
:09:36. > :09:44.have to make sure we raise standards in our schools and create a
:09:45. > :09:48.world-class education system. Kezia Dugdale. To ask the First Minister
:09:49. > :09:51.what engagements she has planned for the rest of the week. Noes
:09:52. > :09:57.engagements to take forward the Government's programme for Scotland.
:09:58. > :10:00.Today's Judgment Day. The day when the SNP will prove beyond doubt that
:10:01. > :10:04.they would rather pass on Tory cuts then use the power of this
:10:05. > :10:09.Parliament to do things differently. And nowhere is that clearer than in
:10:10. > :10:14.our education system. The last two weeks have exposed a decade of
:10:15. > :10:18.failure under the SNP. Even SNP councillors are now speaking out. In
:10:19. > :10:21.Dundee, they have said that the real problem in education is not who runs
:10:22. > :10:26.the school budget, it's the fact that the budget are being cut. Does
:10:27. > :10:31.the First Minister agree with her SNP colleagues in Dundee? I agree,
:10:32. > :10:35.we need to see increased investment in our schools. That is what the SNP
:10:36. > :10:38.pledged to deliver when won the election in May and that is exactly
:10:39. > :10:43.what Derek Mackay's budget will deliver this afternoon. I hope the
:10:44. > :10:48.First Minister has read this paper from her SNP colleagues in Dundee to
:10:49. > :10:53.the Scottish parliament. It is pages and patents of a plea to stop the
:10:54. > :10:58.cuts to education because the truth is there is nothing progressive
:10:59. > :11:02.about the SNP and we still we saw that yesterday. The SNP once again
:11:03. > :11:07.voted with the Tories against a 50p top rate of tax for the richest 1%.
:11:08. > :11:14.And we see it in the state of our schools. Ten years of the SNP has
:11:15. > :11:19.led to falling standards, a shameful gap between the richest and poorest
:11:20. > :11:23.children and more than 4000 fewer teachers. Whatever spin she put on
:11:24. > :11:26.the budget this afternoon, does the First Minister really think it will
:11:27. > :11:32.reverse a decade of damaging cuts? APPLAUSE
:11:33. > :11:35.Of course, what we saw this week was an increase in teacher numbers and
:11:36. > :11:40.part of that increase in teacher numbers, of course, was delivered as
:11:41. > :11:45.a direct result of the attainment fund set up by this Government. What
:11:46. > :11:49.we also see just to date is evidence of a narrowing of the attainment gap
:11:50. > :11:53.in terms of access to universities and we have said that we are
:11:54. > :11:56.determined to go further in our universities and in our schools.
:11:57. > :12:01.That's why we had the data published this week so that we could make sure
:12:02. > :12:04.that we focus absolutely on raising standards, closing that gap and
:12:05. > :12:10.holding Government to account for that. In terms of our tax policy is
:12:11. > :12:13.more generally, I seem to recall yesterday at decision time, Labour
:12:14. > :12:19.voted with the Tories against the position of this Government but we
:12:20. > :12:24.put our tax policies for words to the people of Scotland is in the
:12:25. > :12:28.election. I know that Kezia Dugdale doesn't like being reminded of the
:12:29. > :12:34.election in May because she let her party to the humiliation of coming
:12:35. > :12:37.third in that election, but in that election, we put forward fair,
:12:38. > :12:40.balanced tax proposals and the people of Scotland endorsed them and
:12:41. > :12:49.we will deliver them in our budget this afternoon. I know that the SNP
:12:50. > :12:52.Government has a problem with its numeracy standards, but surely even
:12:53. > :12:56.the First Minister can see that an increase in 250 teachers in one year
:12:57. > :13:03.doesn't take away a loss of 4000 over the last ten. And there are
:13:04. > :13:05.teachers... There are teachers and there are janitors and there are
:13:06. > :13:11.care workers uniting outside this chamber to date against SNP cuts,
:13:12. > :13:15.cuts which are damaging value to public services, cuts which Nicola
:13:16. > :13:19.Sturgeon has spent her whole life saying she could stop if only she
:13:20. > :13:24.had the powers. Well, now the first Mensah has the powers and she is
:13:25. > :13:30.refusing to use them. So local services will face more cuts, cuts
:13:31. > :13:34.which will hit everybody but hurt the most vulnerable. Labour will not
:13:35. > :13:40.vote for a budget which will inflict such pain on Scotland. The question
:13:41. > :13:47.is, why would the SNP? Well, we want because what we will outline this
:13:48. > :13:50.afternoon is a budget that out lines public services. When we hear the
:13:51. > :13:52.budget this afternoon, not just the questions we heard from Ruth
:13:53. > :13:55.Davidson but some of the questions we have heard from Kezia Dugdale are
:13:56. > :13:59.going to turn out to be complete the unfounded because what we will
:14:00. > :14:04.outline is a budget which supports our economy, protects public
:14:05. > :14:08.services and make sure that we do not for -- further punish hard
:14:09. > :14:11.workers. The question when we hear the budget this afternoon is not why
:14:12. > :14:15.this Government would vote for it, we are proud of it. It's like
:14:16. > :14:18.anybody else in this chamber would not fall for it because it is a fair
:14:19. > :14:25.budget, a good budget and I hope the entire chamber will get signed it.
:14:26. > :14:32.-- would not vote for it. Constituency supplementary is. Is
:14:33. > :14:36.the First Minister aware of the level of concern about the proposal
:14:37. > :14:39.to remove inpatient beds from the Centre for integrative care, a
:14:40. > :14:42.change which has been deemed not to be a major one by the Scottish
:14:43. > :14:46.health Council must the anger of patients and campaigners across
:14:47. > :14:49.Scotland? With the First Minister explain what happened to the pledge
:14:50. > :14:52.made by the Health Secretary during the election that she would consider
:14:53. > :14:55.giving the CIC National funding and would she and the Health Secretary
:14:56. > :14:56.agree to meet with campaigners before the meeting of the health
:14:57. > :15:04.board next week? The Health Secretary is or is happy
:15:05. > :15:10.to meet with campaigners and patients. The decision about whether
:15:11. > :15:13.the changes deemed a major service change has been informed by the
:15:14. > :15:17.Scottish health council. We asked them to look at it and give us
:15:18. > :15:21.advice as whether meat to whether they are major and the advice around
:15:22. > :15:26.it is that it is not a major service change because of all of the other
:15:27. > :15:31.proposals coming which have been deemed major change service
:15:32. > :15:35.proposals, and this is the right way to major these decisions and that is
:15:36. > :15:37.something that should be recognised across the Chamber. The Health
:15:38. > :15:44.Secretary will continue to engage with patients on this issue and
:15:45. > :15:49.others. First Minister, on Sunday, over 500 people complained about the
:15:50. > :15:55.transfer of oil between ships and open seas over the Murray first, a
:15:56. > :16:01.plan creating no jobs but putting at risk the marine environment and
:16:02. > :16:05.coastal communities and the tourism industry. In 2007, the Scottish
:16:06. > :16:09.Government opposed a plan like this for the Firth of Forth. Will you
:16:10. > :16:16.personally review the Scottish Government's position on this and
:16:17. > :16:19.join the growing opposition to it? I absolutely understand the concerns
:16:20. > :16:24.people are expressing, as John Finnie will be aware it is a matter
:16:25. > :16:26.reserved for the UK Government. The Scottish garment has repeatedly
:16:27. > :16:30.requested devolution of this function since 2014 but currently we
:16:31. > :16:35.have no formal role in the process despite having evolved
:16:36. > :16:38.responsibility to protect the environment. I believe the step
:16:39. > :16:43.could try state for transport and the UK, must take account of the
:16:44. > :16:48.advice previously given by Scottish actual heritage and the Scottish
:16:49. > :16:52.Environment Protection Agency -- the Secretary of State for Transport.
:16:53. > :16:55.I'm sure the Environment Secretary would be happy to meet with John
:16:56. > :17:02.Finnie to discuss the matter further. The First Minister may be
:17:03. > :17:07.aware of my constituent, Angela McDonald, who faced going to England
:17:08. > :17:11.or Northern Ireland because of a shortage of appropriate neonatal
:17:12. > :17:16.cots in the NHS in Scotland. She bypassed the maternity unit, there
:17:17. > :17:22.were no neonatal cots in Paisley, she ended up in Fife without family
:17:23. > :17:27.or friends. Then she was told she might need to go to Newcastle or
:17:28. > :17:32.Belfast because they had a pressure on neonatal cots. This is simply
:17:33. > :17:37.unacceptable. Can I ask the First Minister why there were no suitable
:17:38. > :17:40.cots in all of NHS Greater Glasgow and Clyde, why there appears to be a
:17:41. > :17:45.shortage of cots across Scotland, wider resources to buy equipment do
:17:46. > :17:49.not appear to be there and if she agrees that this was unacceptable,
:17:50. > :17:55.what will she do now to stop women travelling hundreds of miles to have
:17:56. > :17:59.their babies? Firstly, I'm not going to comment on the individual case, I
:18:00. > :18:03.have read the media report of that and the Health Secretary would be
:18:04. > :18:07.happy to correspond with Jackie Baillie about the particular
:18:08. > :18:11.constituency case she races. I simply say I hope her constituent
:18:12. > :18:16.and baby are doing well and I wish them all the best. In terms of the
:18:17. > :18:20.general issue, around maternity and neonatal services, these are vitally
:18:21. > :18:24.important services in our country, that is why we commissioned the
:18:25. > :18:27.review and the outcome into maternity and neonatal services is
:18:28. > :18:32.due next year. That will look across a range of these issues to make sure
:18:33. > :18:35.we have the right services and the right configurations in place across
:18:36. > :18:48.our country to make sure mothers get the best possible care. When will
:18:49. > :18:52.the Cabinet next meet? On Tuesday. It is not a new habit but it is a
:18:53. > :18:55.bad habit of politicians to criticise an opponent for a policy
:18:56. > :19:02.we do not like and then criticise them again when it is reversed. Can
:19:03. > :19:05.I warmly welcome the change of direction that appears to be
:19:06. > :19:10.happening on the decision to raid local tax revenues to fund a
:19:11. > :19:14.national policy? The Green Party have been consistent in arguing that
:19:15. > :19:18.local taxation should be for local priorities and local decision-making
:19:19. > :19:25.and if this is going to be a change of direction, it will be a positive
:19:26. > :19:28.one. But if the reason for it is an inability to get agreement between
:19:29. > :19:33.central and local government, surely there are two consequences. One for
:19:34. > :19:38.national government, the Scottish Government, that the ability to make
:19:39. > :19:42.Scotland wide decisions on policy, investment in services, it has to be
:19:43. > :19:47.funded by national taxation powers and that is exactly what those tax
:19:48. > :19:55.powers are for. Secondly, for local government, that they also need the
:19:56. > :19:59.flexibility, unhampered or central control, to make decisions about tax
:20:00. > :20:02.rates at local level to meet local priorities because these are the
:20:03. > :20:05.people working hard in every community to deliver the services we
:20:06. > :20:12.all depend on every day of our lives. Well, obviously I am not
:20:13. > :20:18.going to comment in detail on the budget because Derek Mackay will
:20:19. > :20:21.outline that shortly. I have said a number of things in response to
:20:22. > :20:24.other questions and I hope that when the Chamber hears the budget this
:20:25. > :20:27.afternoon, there will be a recognition that what I'm about to
:20:28. > :20:32.say is absolutely at the heart of the budget. We have put together a
:20:33. > :20:36.budget that protects nationally funded public services, a budget
:20:37. > :20:41.that will absolutely deliver on our commitment to get extra investment
:20:42. > :20:45.into schools, to help us raise standards and close the attainment
:20:46. > :20:49.gap, and a budget that seeks to protect local services and also
:20:50. > :20:52.respect local Chrissy and accountability. These are three
:20:53. > :20:56.important principles and I believe we will put forward a budget that
:20:57. > :21:01.delivers on every one of them -- local democracy. The First Minister
:21:02. > :21:06.saying, I am not going to comment that was a phrase we all expected to
:21:07. > :21:10.hear and we understand that we will hear the detail later, but I was
:21:11. > :21:13.asking about the broad direction of travel. If the First Minister is
:21:14. > :21:16.describing correctly a budget that will protect national services and
:21:17. > :21:24.local services from cuts, I will look on that with an open mind. No
:21:25. > :21:29.party gained a majority yesterday in the Chamber on the debate on
:21:30. > :21:31.taxation. No party including the government was able to convince a
:21:32. > :21:37.majority of the Parliament of its own tax position. Some have
:21:38. > :21:41.described it as a stalemate and it is in all of our interests to avoid
:21:42. > :21:47.that kind of stalemate when the budget itself comes for a vote or
:21:48. > :21:50.when the rate resolution, tax rates, come to a vote. But it is
:21:51. > :21:56.significant that SNP, green, Labour and Lib Dem MSPs were united
:21:57. > :22:01.yesterday in rejecting the Tory ideological demand that taxes should
:22:02. > :22:06.be no higher in Scotland. If we want to avoid that kind of stalemate, all
:22:07. > :22:10.we need to decide is who is going to be paying more taxes and we believe
:22:11. > :22:14.in the green party that it should be people on the wealthy end of the
:22:15. > :22:19.income scale, not those who are low earners. Can the First Minister
:22:20. > :22:24.confirm that people like ourselves, MSPs, ministers in the Scottish
:22:25. > :22:30.Government, on high incomes, we will be paying more in tax next year than
:22:31. > :22:34.this year? I will let Derek Mackay set out the details of the budget
:22:35. > :22:38.but we put our tax policies to the electorate, we put our national tax
:22:39. > :22:45.policies and local tax policies to the electorate and we emerged by
:22:46. > :22:51.some considerable distance as the largest party in this Chamber. More
:22:52. > :22:56.broadly, I welcome the fact that Patrick Harvie says he will listen
:22:57. > :22:58.to the budget with an open mind because I think he will find and
:22:59. > :23:04.hear plenty in the budget that he can agree with. I would also say to
:23:05. > :23:07.him that it is important that we seek to build progressive alliances
:23:08. > :23:12.in this Chamber and I am certainly very happy and very willing to do
:23:13. > :23:16.that. I think what we will find this afternoon is that there are acres of
:23:17. > :23:20.common ground in this budget that we can all build on. I look forward to
:23:21. > :23:26.working with those across the Chamber or at least in certain parts
:23:27. > :23:29.of the Chamber to try to build that progressive alliance that supports
:23:30. > :23:34.our economy, public services and make sure we deliver fairness to
:23:35. > :23:37.people across this country who are already starting to pay the price of
:23:38. > :23:41.the higher inflation imposed on us by the Tory Brexit obsession. These
:23:42. > :23:44.are the principles at the heart of our budget and I hope everyone will
:23:45. > :23:49.be able to support them. APPLAUSE
:23:50. > :23:54.Supplementary, the first from Richard Lochhead. Will the First
:23:55. > :23:58.Minister join me in condemning Halford to want to charge one of my
:23:59. > :24:05.constituents and astonishing ?50 for delivering a pair of car towels?
:24:06. > :24:08.They have implied the higher charge is to put off customers in the north
:24:09. > :24:12.of Scotland from ordering. So much for the season of goodwill. Will she
:24:13. > :24:15.agree that as more and more all residents buy online in the run-up
:24:16. > :24:20.to Christmas, they should not be treated with this content or fleeced
:24:21. > :24:24.by companies or disconnected against for living in the north of Scotland?
:24:25. > :24:28.Can I ask if the first list and her colleagues in the government will
:24:29. > :24:34.put pressure on to the UK Government to support this out -- to sort this
:24:35. > :24:38.out once and for all? He raises an important issue and yes we will
:24:39. > :24:41.continue to apply pressure to the UK Government to take action. The level
:24:42. > :24:50.of charge that Richard Lochhead has outlined today is shocking. It is,
:24:51. > :24:55.based on what he has said, vastly out of proportion. I am in full
:24:56. > :24:59.agreement that excessive charging is unacceptable, particularly when we
:25:00. > :25:04.know that more and more customers are taking advantage of the benefits
:25:05. > :25:07.of shopping online. That is why we played an active role in developing
:25:08. > :25:10.a statement of principles for delivery charging which reputable
:25:11. > :25:16.companies should adhere to. As Richard Lochhead has alluded to, the
:25:17. > :25:19.UK Government has the power and indeed the obligation to prevent
:25:20. > :25:25.this kind of situation from a rising and we will continue to press them
:25:26. > :25:31.to do much better by rural citizens than now -- from arising. Since
:25:32. > :25:35.February, the Scottish prison services had the power to release
:25:36. > :25:38.prisoners up to two days early so that they can access services in
:25:39. > :25:42.their community, a move supported by parties across this Chamber. The
:25:43. > :25:46.Scottish Government's policy memorandum at the time stated some
:25:47. > :25:51.4000 prisoners year are released on a Friday and that release on the
:25:52. > :25:55.days preceding weekend is, I quote, consistently raised as a key barrier
:25:56. > :25:58.to accessing services. I have now found that in the ten month since
:25:59. > :26:02.that provision was made available, it has only been used for one
:26:03. > :26:07.prisoner. What is the First Minister's assessment of the usage
:26:08. > :26:11.of this power? It is an issue that sounds as if it is one we should
:26:12. > :26:16.look into further. I am happy to do so. I do not have the detail now.
:26:17. > :26:21.The reason for the policy that he has outlined is to help prisoners
:26:22. > :26:28.before the release reintegrate and access services and it is very
:26:29. > :26:35.important to reduce reoffending. I will look into this and have the
:26:36. > :26:41.Justice Secretary write to him. Humanity is dying before our eyes
:26:42. > :26:48.and the world looks on helpless. Looking at the seams of Aleppo, I
:26:49. > :26:51.feel angry, broken, helpless and lost, angry that this could happen
:26:52. > :26:56.in our world, broken because I can only imagine if that was my children
:26:57. > :27:00.staying awake at night because of the sound of gunfire and explosions,
:27:01. > :27:05.my boys whose only hope in life was to stay alive, helpless because I do
:27:06. > :27:11.not know what I or anyone ask: do to make a meaningful difference, and
:27:12. > :27:16.lost because every option I think of it can only mean more bloodshed and
:27:17. > :27:20.filers. We need to do something but I honestly do not know what that
:27:21. > :27:25.something is. I know warm words will not save a single life in Aleppo,
:27:26. > :27:29.but I hope all of us in this Chamber can encourage people across Scotland
:27:30. > :27:32.to take part in humanitarian responses in Syria and also send a
:27:33. > :27:37.strong message of solidarity, humanity and peace to every man,
:27:38. > :27:44.woman and child struggling in Aleppo.
:27:45. > :27:50.APPLAUSE Can I thoroughly endorse his
:27:51. > :27:55.comments? And I also share his sentiments expressed to the Chamber
:27:56. > :27:59.today. Each and every one of us finds the scenes we are witnessing
:28:00. > :28:01.on our television screens nightly at the moment from Aleppo to be
:28:02. > :28:08.heartbreaking and deeply, deeply distressing. It is very difficult in
:28:09. > :28:13.the circumstances for a new of us to see what should be done to resolve
:28:14. > :28:17.the situation. -- for any of us. But we know the world cannot on this
:28:18. > :28:21.occasion, as it has done so often in the past, continue to stand back
:28:22. > :28:25.while the scenes of slaughter and destruction happen before our very
:28:26. > :28:32.eyes. There are things I think we should be supporting, more of a
:28:33. > :28:35.humanitarian intervention, I think the suggestion of humanitarian
:28:36. > :28:41.airdrops, for example, should be further discussed. Evacuation of the
:28:42. > :28:44.wounded, for example, Red Cross evacuation is happening as we speak
:28:45. > :28:48.and I think we should be supporting more of that. There should
:28:49. > :28:53.absolutely be a determination to hold anyone who is guilty of what
:28:54. > :28:59.would be war crimes to account for their behaviour in the international
:29:00. > :29:05.community -- and the international community must unite behind that. I
:29:06. > :29:08.endorse his plea that we should bear the humanitarian crisis in mind and
:29:09. > :29:14.seek to do what we can as individuals to help with the granite
:29:15. > :29:19.airing effort. More widely -- with the humanitarian effort. It does not
:29:20. > :29:23.take away from the horror we are witnessing but this time last week
:29:24. > :29:26.after First Minister's Questions, I visited a group of Syrian refugees
:29:27. > :29:32.who arrived in Edinburgh around this time last year and what I saw was a
:29:33. > :29:36.number of people still suffering trauma and real anxiety and concern
:29:37. > :29:41.about relatives in other countries or in some cases still in Syria. I
:29:42. > :29:47.also witnessed what can happen when as a society we come together and
:29:48. > :29:51.act in a humanitarian way, giving refuge, it think a home to people
:29:52. > :29:54.who need it. Let us hope today, as we hope on all days, but
:29:55. > :30:00.particularly so close to Christmas, that we can see a future where the
:30:01. > :30:05.love they stunned humanitarian instinct can overcome the horror
:30:06. > :30:10.that we witness all too often -- where the love based on that
:30:11. > :30:12.humanitarian instinct can overcome the horror that we witness all too
:30:13. > :30:22.often. I'm sure we can all welcome the
:30:23. > :30:26.children 50 additional teachers in Scotland, funded by this contraband.
:30:27. > :30:31.When we hear the budget later on, does this not reinforce the message
:30:32. > :30:35.that all politicians whether in this chamber or in local Government
:30:36. > :30:40.should get behind, fully get behind, the attainment Scotland fund. I hope
:30:41. > :30:44.the entire chamber will get behind the attainment Scotland fund.
:30:45. > :30:47.Indeed, the attainment challenge which is focused on raising
:30:48. > :30:50.attainment in our schools, I certainly have been very clear about
:30:51. > :30:54.the priority I attach as First Minister to the work that it
:30:55. > :30:57.supports. The teacher numbers figures that were published earlier
:30:58. > :31:04.this week showed an increase in teacher numbers but it is quite
:31:05. > :31:08.important, I think, as part of that increase that many of them were
:31:09. > :31:11.funded directly through the attainment fund. That is a
:31:12. > :31:15.relatively small number because the fund are still in its early stages,
:31:16. > :31:19.but it is a demonstration I think of the power of that kind of directed
:31:20. > :31:22.and targeted resource and the budget this afternoon will set out our
:31:23. > :31:28.plans to ensure that that kind of approach continues. To as the First
:31:29. > :31:32.Minister what discussions the Scottish Government has had with the
:31:33. > :31:37.oil and gas industry in light of recovering oil prices. The Scottish
:31:38. > :31:40.Government has worked closely with the oil and gas industry through the
:31:41. > :31:45.work of the energy jobs tax force to overcome the challenges it has faced
:31:46. > :31:49.as a result of the downturn. While oil prices have recently risen
:31:50. > :31:53.slightly, we are under no illusion about the challenges the sector
:31:54. > :31:57.continues to face. Of course, the UK Government holds the main levers to
:31:58. > :32:00.support the sector and we are disappointed that they provided
:32:01. > :32:03.nothing new to support in the Autumn Statement. We remain committed to
:32:04. > :32:06.supporting the sector and of course with up to 20 billion barrels of oil
:32:07. > :32:10.still to be recovered from the North Sea, it is clear that with the right
:32:11. > :32:15.investment and interventions now, the industry can and will have a
:32:16. > :32:19.bright future. I thank the First Minister for that response.
:32:20. > :32:24.Yesterday I received an update from BP, as I'm sure other North East MSP
:32:25. > :32:29.state, in which their CEO is quoted as saying the myth that the North
:32:30. > :32:33.Sea is finished is absolutely that. There is a demonstration of new
:32:34. > :32:36.activity and new big fields coming on stream. There is real economic
:32:37. > :32:40.activity that will support thousands of jobs and there is an active
:32:41. > :32:44.exploration programme that could create something really new and
:32:45. > :32:47.exciting. Given that the Westminster Government have completely failed to
:32:48. > :32:51.support the oil and gas sector and the north-east of Scotland's
:32:52. > :32:54.economy, can be First Minister outlined what work the Scottish
:32:55. > :33:00.Government is doing to maximise investment in this vital sector and
:33:01. > :33:04.to encourages exploration? The finance secretary wrote to the
:33:05. > :33:07.Chancellor in advance of the Autumn Statement outlining further action
:33:08. > :33:12.the Treasury could take to support the sector at this time, including
:33:13. > :33:14.vital measures to stimulate exploration. I think it is
:33:15. > :33:17.disappointing that the Chancellor chose not to act I hope we will see
:33:18. > :33:23.further action from the UK Government over the months to come
:33:24. > :33:26.on exploration, but also around the operation of decommissioning tax
:33:27. > :33:29.relief which is also very important in terms of the stage the North Sea
:33:30. > :33:34.sector is at right now. The Scottish Government will continue to do all
:33:35. > :33:39.we can to support the industry. The tax force I mentioned remains
:33:40. > :33:42.focused on supporting those who are affected today, but also looking to
:33:43. > :33:47.the future to lay foundations for a vibrant industry for decades to
:33:48. > :33:50.come. The ?12 million transition training fund established by the
:33:51. > :33:55.Scottish Government has been very successful supporting sofa over 1200
:33:56. > :33:59.people who have been made redundant to be retrained. These are tangible
:34:00. > :34:02.efforts to support workers in the industry and through the city deal
:34:03. > :34:06.with the UK Government, although the Scottish Government is investing
:34:07. > :34:08.more in terms of infrastructure, supporting Aberdeen and
:34:09. > :34:14.Aberdeenshire to make sure they have the infrastructure they need to
:34:15. > :34:20.compete in the future. Can I quote directly to the First Minister what
:34:21. > :34:25.oil and gas UK said in response to the Autumn Statement? We are pleased
:34:26. > :34:29.to hear the Chancellor recommit to HM Treasury's driving investment
:34:30. > :34:32.plan today. This sends a strong signal to investors that the
:34:33. > :34:36.Government recognises that the UK oil and gas tax regime needs to be
:34:37. > :34:40.predictable and internationally competitive. Presiding Officer, when
:34:41. > :34:44.the industry is so positive about the UK Government action, why can't
:34:45. > :34:54.the First Minister be? Of course, the industry... The oil and gas
:34:55. > :34:58.industry have been calling... I attended a meeting a few months back
:34:59. > :35:02.in Aberdeen with oil and gas UK and we discussed some of the particular
:35:03. > :35:05.issues that I have been talking about today, further support for
:35:06. > :35:09.exploration and in particular how decommissioning tax relief is dealt
:35:10. > :35:14.with to make sure that it can also support a new entrance into the
:35:15. > :35:17.sector. These are important practical measures. I recognise some
:35:18. > :35:22.of the earlier steps that the UK Government took around investment,
:35:23. > :35:25.for example, but I think all of us should say that there is more that
:35:26. > :35:29.needs to be done and we should unite in order to ask the UK Government to
:35:30. > :35:32.do it. I think that is a privately reasonable approach. In the
:35:33. > :35:39.meantime, as First Minister, we should make sure that we match our
:35:40. > :35:42.commitment to support retraining, upscaling, efforts to ensure that
:35:43. > :35:45.when the industry does recover, as it will, we still have the skills
:35:46. > :35:49.and abilities of Scotland to ensure that it can flourish. If we work
:35:50. > :35:53.together, I think it would be a good thing to do on this as it would on
:35:54. > :35:56.other things as well, then we can make sure that this vital Scottish
:35:57. > :36:05.industry has the support it needs and can have a very bright future
:36:06. > :36:08.indeed. To ask the First Minister, in light of recently reported
:36:09. > :36:13.issues, what action the Scottish Government is taking to ensure that
:36:14. > :36:19.farmers can have confidence in a National Basic Payment Support
:36:20. > :36:28.Scheme? Clear that it is important that it is important to learn from
:36:29. > :36:32.all issues recent reported to give farmers confidence. We have followed
:36:33. > :36:38.all of audit Scotland's recommendations and some internal
:36:39. > :36:41.actions are being undertaken. It is crucial that this does not risk
:36:42. > :36:44.delivery to farmers and crofters and I would hope that all members would
:36:45. > :36:48.agree that the thing we can do to give farmers must confidence in the
:36:49. > :36:52.2016 scheme is to deliver it by the end of June. The timescale was set
:36:53. > :36:59.up by the rural economy secretary. That is what he, me an entire
:37:00. > :37:04.Government is focused on achieving. I'm grateful to the First Minister
:37:05. > :37:09.for that answer. Last week, Scotland's rural communities saw her
:37:10. > :37:17.Government over pay loans to 106 26 farmers to a total of ?746,000 and
:37:18. > :37:22.we also saw a foul up with the efficiency schemes data protection
:37:23. > :37:25.which has led to a breach with thousands of e-mails addresses
:37:26. > :37:31.accidentally release. All on top of a dismal record on giving this EAP
:37:32. > :37:37.payments to farmers and crofters. Will she commit to delivering this
:37:38. > :37:42.year's balance of the cap payments as soon as possible and by the very
:37:43. > :37:46.latest by June of next year? Yes, that is what I just said we were
:37:47. > :37:50.absolutely focused on doing. In terms of the data protection issue,
:37:51. > :37:53.that is a serious matter. It was a human error within the Government
:37:54. > :37:57.and appropriate action will of course be taken to ensure that those
:37:58. > :38:00.errors do not happen in the future. In terms of the overpayment issue,
:38:01. > :38:04.that was identified on the day of the issue of the loans, affected
:38:05. > :38:08.businesses were contacted the next day and an apology was issued and
:38:09. > :38:12.discussions have taken place about how that money will be repaid.
:38:13. > :38:16.Prompt action was taken to alert customers about the overpayment and
:38:17. > :38:20.agreed repayment. On the more general issue, the issue I think
:38:21. > :38:24.farmers and crofters are of course concerned about, over 12.5 thousand
:38:25. > :38:29.farmers and crofters have now received a nationally funded loan.
:38:30. > :38:34.The total loans amounted to ?256 million and that is getting money
:38:35. > :38:38.into the pockets of farmers, where it needs to be. Fergus Ewing has
:38:39. > :38:42.been very clear that we are very determined that the scheme will be
:38:43. > :38:45.delivered in full by the deadline of June next year and I think the
:38:46. > :38:51.member will get behind him and the Government as we seek to ensure that
:38:52. > :38:53.that is the case. Almost one third of foreign businesses are so
:38:54. > :38:57.confident about the Scottish Government's loan scheme which
:38:58. > :39:02.closed yesterday that they are not taking it up. This means that over
:39:03. > :39:07.?200 million that was due to be spent in the rule economy this month
:39:08. > :39:11.because the December every year, that money is sitting in the
:39:12. > :39:15.Scottish Government's bank account. Does the First Minister... She is
:39:16. > :39:19.laughing at best, but does she not understand that the continued
:39:20. > :39:22.failure to deliver farm entitlements, because that is what
:39:23. > :39:28.they are, on time is damaging our whole global economy? Well, we are
:39:29. > :39:32.absolutely focused on making sure that we support the rural economy.
:39:33. > :39:36.In terms of this question about the loan scheme, we made a loan scheme
:39:37. > :39:42.available. It was the right thing to do and I think it was widely
:39:43. > :39:45.supported not just across this chamber but by the industry as well.
:39:46. > :39:48.With the greatest of respect, I cannot force farmers to agree to
:39:49. > :39:56.take a loan. The offer was made. Many farmers have taken that up and
:39:57. > :40:00.as I have said, 12,500 have received a nationally funded loan. If some
:40:01. > :40:03.farmers and crofters opt not to take that long, that is their decision
:40:04. > :40:08.and it is a decision that as the Government we have to respect. In
:40:09. > :40:13.terms of the payment of the overall scheme, in terms of last year's
:40:14. > :40:16.scheme, 99% of payments have been made there and we are absolutely
:40:17. > :40:18.focused on making sure that we were the lessons from that so that
:40:19. > :40:23.payments are made by the June deadline that we have been speaking
:40:24. > :40:27.about. I have repeatedly on previous occasions, and I have no hesitation
:40:28. > :40:31.in doing so again, apologising to farmers and liberal economy for the
:40:32. > :40:34.mistakes that were made and the delays that were encountered in the
:40:35. > :40:37.2015 scheme. We are determined to learn lessons to put it right and
:40:38. > :40:43.ensure that we meet the deadline next year and that is what we will
:40:44. > :40:46.do. To ask the First Minister what the Scottish Government's response
:40:47. > :40:51.is to be figures released by the Care Inspectorate that show that 70%
:40:52. > :40:55.of four-year-olds were recorded as receiving funded childcare. I think
:40:56. > :41:00.it's very important to note, and I hope Mr Johnson will not it, that
:41:01. > :41:05.the 70% he has derived from the Care Inspectorate's figure is based on a
:41:06. > :41:08.trial statistic numbers of funded four-year-olds and that the Care
:41:09. > :41:16.Inspectorate itself has said that these are trial statistics and may
:41:17. > :41:18.well be incomplete. In fact, its own report clearly indicates that the
:41:19. > :41:22.data has been collected for the first time and states, there are
:41:23. > :41:25.some uncertainties regarding the data quality. I and the Care
:41:26. > :41:29.Inspectorate would therefore urge caution in drawing conclusions from
:41:30. > :41:33.the statistics. The member may note that the later statistics published
:41:34. > :41:36.by the Scottish Government this week which are validated and quality
:41:37. > :41:40.assured statistics showed levels of optics for four-year-olds remain
:41:41. > :41:44.close to your arousal levels. I thank the first that answer. Fair
:41:45. > :41:48.funding for our kids have been telling the Government for two years
:41:49. > :41:51.that the that the way the Government measures childcare is wrong and that
:41:52. > :41:57.children are missing out. It is ludicrous to rely on statistics that
:41:58. > :42:00.show rates well over 100% in some areas. They Care Inspectorate
:42:01. > :42:04.figures confirm how misleading the Government's figures are. If we
:42:05. > :42:08.cannot have confidence in the Government's figures on the uptake
:42:09. > :42:12.of 600 hours, can we have confidence that we are on track to deliver
:42:13. > :42:16.double that especially when the Government's blueprint on childcare
:42:17. > :42:22.has already been delayed? I'm very happy to ask the Minister for
:42:23. > :42:25.childcare to write to the member to set out some of the details of this
:42:26. > :42:29.because I think it is important that people understand it. The figure
:42:30. > :42:33.from the Scottish Government's figure is and these are quality
:42:34. > :42:36.assured and validated figures of 98% for four-year-olds, we have
:42:37. > :42:41.recognised and partially recognised as a consequence of our discussions
:42:42. > :42:45.with Fair Funding For Our Kids but that there will be some duplication
:42:46. > :42:50.in that. But taking that duplication into account, there is confidence
:42:51. > :42:54.that the figure will be over 95% of four-year-olds registered for their
:42:55. > :42:59.entitlement for childcare. That is very close to universal levels. I
:43:00. > :43:03.have equally conceded in this chamber many times in the past that
:43:04. > :43:06.we must do more to increase the flexibility that we are offering and
:43:07. > :43:10.there is work underway with local councils to do exactly that. We are
:43:11. > :43:13.now focused and this will also be reflected in our budget this
:43:14. > :43:16.afternoon on doubling the position over the lifetime of this parliament
:43:17. > :43:19.because it is the doubling of the provision that will deal with some
:43:20. > :43:24.of the inflexibility is that parents understandably find difficult. This
:43:25. > :43:28.is an absolutely vital policy, vital for the good of our young people,
:43:29. > :43:31.vital for parents helping them get into work and one that I will be
:43:32. > :43:38.very proud of the half of this Government is he implemented over
:43:39. > :43:41.the life of this Parliament. Cala First Minister outline how much
:43:42. > :43:44.money the Scottish Government has invested in early learning and
:43:45. > :43:46.childcare and how much local authorities have spent? Does she
:43:47. > :43:51.agree with me that it is the height of hypocrisy for Labour politicians
:43:52. > :43:54.to come to this chamber the morning plc funding when Labour councils
:43:55. > :44:03.like Fifa have taken Scottish Government funding and run? One
:44:04. > :44:06.thing we know, and we know it from the financial review that was
:44:07. > :44:12.carried out, is that the expansion in childcare to 600 hours has been
:44:13. > :44:19.fully funded. Local authorities have been provided with ?500 million for
:44:20. > :44:22.that since 2014. Of course, we are committed to further funding to
:44:23. > :44:25.support the doubling of provision that I have already spoken about and
:44:26. > :44:30.the draft budget will touch on this later today. The financial review
:44:31. > :44:32.also highlighted the estimated significant underspend on the
:44:33. > :44:37.funding given to local authorities to support the expansion to 600
:44:38. > :44:41.hours. I expect local authorities to spend the funding we make available
:44:42. > :44:44.to them, to provide the outburst, flexibility and choice that parents
:44:45. > :44:53.and children have a right to expect. I also expect to see clear progress
:44:54. > :44:55.from authorities with low levels of registrations but which have failed
:44:56. > :44:58.to make full use of their funding. These are important issues. It is
:44:59. > :45:00.vital that we fund these commitments but then local authorities must use
:45:01. > :45:05.that funding to deliver those commitments. That includes First
:45:06. > :45:16.Minister's Questions. It was very largely overbudget warm
:45:17. > :45:21.up in call using -- including the closing remarks, talking about
:45:22. > :45:24.working collaboratively with local government, the remark from the SNP
:45:25. > :45:30.backbencher saying that sometimes it does not always work that struck as
:45:31. > :45:35.well as the budget remarks. Quite intriguing and remarkable
:45:36. > :45:40.intervention on the subject of Aleppo, emotive and emotional.
:45:41. > :45:44.Perhaps indicating also the difficulty and futility to some
:45:45. > :45:48.extent of efforts by Western governments to address the problem.
:45:49. > :45:54.Joined by two colleagues, Lindsay McIntosh, Severin Carrell, the
:45:55. > :45:59.emotional tone of that contribution and the First Minister, really quite
:46:00. > :46:07.striking. It did strike a different tone on a day when I think issue was
:46:08. > :46:11.taken up by political sniping over the budget. It struck a very
:46:12. > :46:15.different note on Aleppo and it was very emotive and it was one of those
:46:16. > :46:24.questions where the parliament acquits itself very well... Angry,
:46:25. > :46:30.helpless, broken and lost. He has got sons, thinking, if those were my
:46:31. > :46:34.children in Aleppo, being kept awake at night by the sound of gunfire and
:46:35. > :46:38.bombs, I feel broken because I cannot do everything. The very fact
:46:39. > :46:47.he said, I cannot do anything, it stresses to some extent that almost
:46:48. > :46:52.futility of such an emotive intervention when nothing can be
:46:53. > :46:55.done. That is right. Assad's retaking of Aleppo which is the
:46:56. > :46:59.endgame of a conflict going on for four or five years and it is the
:47:00. > :47:02.consequence of a failure of taking the right kind of action for five
:47:03. > :47:08.years ago, or a consequence of Western governments participating in
:47:09. > :47:13.this conflict as a proxy war. The best thing the Scottish Parliament
:47:14. > :47:17.could do in my view would be to start calling for some kind of
:47:18. > :47:20.support for the UN, some sort of international organisation that has
:47:21. > :47:24.the power to go in and help the people most affected. This is a
:47:25. > :47:32.consequence of four years. Problem is allowed to fester and blow up. I
:47:33. > :47:37.could not help thinking to myself when I heard the words of Wilfred
:47:38. > :47:43.Owen's poem, a sunbeam... Let us move from that of the budget. Two
:47:44. > :47:46.camps to some extent, the spending and tax elements. Spending,
:47:47. > :47:49.confirmation from the First Minister pretty well but there will be more
:47:50. > :47:54.money for education which is not going to top slice the higher bands
:47:55. > :47:56.of council tax. This was one of the most controversial proposals we
:47:57. > :48:00.thought would be coming in the budget. The increase in council tax
:48:01. > :48:03.being used in education. But crucially not to allow the
:48:04. > :48:07.individual authorities which raised the money to spend their own money.
:48:08. > :48:12.It was going to be brought back into a central pot and then redistributed
:48:13. > :48:17.to council areas that needed it most to close the attainment gap. It
:48:18. > :48:22.looks like Derek Mackay is going to reverse away from that and we do not
:48:23. > :48:26.quite know what he is going to do to close the attainment gap because
:48:27. > :48:30.clearly something needs to be done. This is Nicola Sturgeon's number one
:48:31. > :48:35.priority, closing the attainment gap in education. What is she going to
:48:36. > :48:39.do? She was adamant that however it is done, it will be done. She was
:48:40. > :48:44.challenging others to back the attainment fund process. Presumably
:48:45. > :48:48.that means they have some other challenging proposition. They will
:48:49. > :48:52.have to arrive at some sort of formula to allow them to produce the
:48:53. > :48:54.money, it has got to come from somewhere, because they are capping
:48:55. > :48:59.their own capacity to spend money because they are not going to raise
:49:00. > :49:03.income taxes anything beyond the rate of inflation that we currently
:49:04. > :49:07.have. Part of the reason why Derek Mackay Nicola Sturgeon decided to
:49:08. > :49:13.drop this pretty divisive and controversial top slicing of
:49:14. > :49:17.council... Voted against the shape of the Green motion? They have got
:49:18. > :49:21.an eye on the local elections in May. This policy would play well in
:49:22. > :49:24.places like Dundee and Glasgow, but it would play very badly in areas
:49:25. > :49:29.where there are expensive homes and it would demolish... Aberdeenshire
:49:30. > :49:34.where the SNP are trying to maintain power? And Edinburgh. It would play
:49:35. > :49:39.extremely badly in Edinburgh. They do not want to demolish that broad
:49:40. > :49:44.consensus, the coalition of different parts of Scottish society
:49:45. > :49:48.supporting the SNP's popularity. What is taking place in the
:49:49. > :49:53.background, there will be a photocall very soon with the leaders
:49:54. > :49:57.in their jerseys. We will try to let you look at it. Let us talk again
:49:58. > :50:03.about the council settlement. Overnight, talk of a 350 million
:50:04. > :50:08.cut. Nicola Sturgeon said those forecasting that would look silly.
:50:09. > :50:13.We know that in previous years what has happened with the Scottish
:50:14. > :50:17.Government budget is that in order to conserve its own budget, its
:50:18. > :50:20.Holyrood project, it has passed on a plane to local authorities. Those
:50:21. > :50:28.are the services which really affect people's lives. Organisations
:50:29. > :50:33.representing Scottish councils have been very good at wetting their
:50:34. > :50:39.voice out ahead of this budget to say, we cannot take any more pain --
:50:40. > :50:42.getting their voice. If you cut us again, we will have to ditch
:50:43. > :50:46.services provided for the electorate, they have said. Nicola
:50:47. > :50:50.Sturgeon and Derek Mackay have had to say, we cannot do that for a
:50:51. > :50:54.third time. Hold fire while they get organised with the photocall. Let us
:50:55. > :50:59.catch up on the views of some of the party leaders, first of all, Derek
:51:00. > :51:03.Mackay on the subject of the budget that we are expecting this afternoon
:51:04. > :51:06.of course. I can confirm the draft budget will respond to the
:51:07. > :51:10.challenges presented by the EU referendum and UK Government
:51:11. > :51:15.austerity, deliver positive steps to build a nation with the dynamics
:51:16. > :51:20.sustainable inclusive economy supporting all of Scotland's
:51:21. > :51:23.regions. Scotland's economy is underperforming the rest of the UK
:51:24. > :51:27.and this matters because from next year half of the money spent by the
:51:28. > :51:31.Scottish Government will have to be raised in taxes here in Scotland. We
:51:32. > :51:34.want to see the budget prioritise in measures to grow the Scottish
:51:35. > :51:39.economy and we are very clear we will oppose any budget measures to
:51:40. > :51:42.tax Scottish families and businesses more highly than those in the rest
:51:43. > :51:46.of the UK. What I'm expecting to see if hundreds of millions of pounds
:51:47. > :51:49.worth of cuts to vital public services and we talk about the
:51:50. > :51:52.funding for local government but what we are talking about is the
:51:53. > :51:57.money going into schools, paying for care for elderly parents, the
:51:58. > :51:59.resources our teachers use and we have seen substantial cuts already
:52:00. > :52:04.and councils are saying they cannot take any more. I am very much hoping
:52:05. > :52:08.that we will hear positive news from Derek Mackay but I think we will see
:52:09. > :52:12.swingeing cuts once again. The intriguing conundrum on taxation,
:52:13. > :52:17.the Labour Party want to put up tax, focusing yesterday on the 50p
:52:18. > :52:21.proposed tax rate, they want 1p increase across the bands, the
:52:22. > :52:25.Conservative saying, we do not want tax in Scotland to be any way higher
:52:26. > :52:29.than south of the border. Let us talk about what is being proposed by
:52:30. > :52:33.the Scottish Government, what do you expect from Derek Mackay on tax? I
:52:34. > :52:37.expect him to stick with the formula set out by John Swinney which is
:52:38. > :52:40.allowing the rates to increase by the rate of inflation, nothing
:52:41. > :52:44.dramatic. They have a real problem, they need to maintain the
:52:45. > :52:48.relationship with middle-class voters, they need to show they are a
:52:49. > :52:53.country open for business and welcoming to people that want to
:52:54. > :52:56.learn proper wages, but at the same time, they have a pension. It is the
:52:57. > :53:02.question about dealing with the tension, needing also to fund public
:53:03. > :53:08.services they are committed to delivering. It is very delicate and
:53:09. > :53:18.difficult to balance it, for Derek Mackay today. He will try to use the
:53:19. > :53:25.fact that he is in the sensible middle of the consequence. Severin
:53:26. > :53:31.is right. Politically, he is in the right place. Earlier you had Ruth
:53:32. > :53:38.Davidson shouting for a Scotland not to be taxed higher than the rest of
:53:39. > :53:41.the UK and Kezia Dugdale shouting for an increase in taxation to fund
:53:42. > :53:50.public services. Nicola Sturgeon right in the middle saying, Tories
:53:51. > :53:54.are saying this, Labour saying that, I am taking the centre ground. The
:53:55. > :53:58.proposal is not that people in Scotland pay more tax than they are
:53:59. > :54:01.paying at the moment. But they will end up paying more tax... The
:54:02. > :54:05.Chancellor's proposals would drive down the bill for higher earners.
:54:06. > :54:10.That is not strictly true. What it effectively means, if we increase
:54:11. > :54:14.the starting band or starting of different brands by inflation, in
:54:15. > :54:24.cash terms, they will be paying less tax, in real terms, it should be the
:54:25. > :54:27.same. The formula, the framework for Derek Mackay on this, it is
:54:28. > :54:31.different because it has additional capital borrowing, capital
:54:32. > :54:37.allocation from the Treasury. He has an extra ?820 million to spend on
:54:38. > :54:42.capital projects and infrastructure, so there will be scope for them to
:54:43. > :54:46.move money around. The Guardian has reported about the fact they have
:54:47. > :54:48.lost nearly ?1 billion worth of capital borrowing because of a
:54:49. > :54:53.problem with privatisation programmes. At the same time, they
:54:54. > :54:56.will lose ?450 million from borrowing, but they will gain a
:54:57. > :55:00.couple of hundred million pounds from capital revenue directly from
:55:01. > :55:04.the Treasury and that should allow them to shift some projects that
:55:05. > :55:08.would have been funded from day-to-day revenue funding onto the
:55:09. > :55:13.capital budget. That may free up money. We may find fairly elegant
:55:14. > :55:19.manoeuvring on the accounts here to allow them to free up cash, for some
:55:20. > :55:28.of the headline spun -- headline public spending rejects. The
:55:29. > :55:30.economic question, which of the two attacks will worry the most? The
:55:31. > :55:36.Tory attack, charging people more than people in England, or the
:55:37. > :55:40.Labour attack that it is an ambitious? Possibly the Labour
:55:41. > :55:44.attack. We have seen polling which suggest that people are becoming
:55:45. > :55:50.less happy with the way the Scottish Government is dealing with its
:55:51. > :55:54.devolved responsibilities. If Labour put forward a proposal saying that
:55:55. > :55:57.we could have more money for services, better provision for
:55:58. > :56:01.Scots, Scots might think, why are you not doing this customer however,
:56:02. > :56:07.people do not like to be taxed more. Would Labour's proposal work?
:56:08. > :56:10.Probably not. Polls say, I favour increased spending, and I want them
:56:11. > :56:18.to pay for it. That is generally the outcome. How do you see this shaking
:56:19. > :56:23.down on tax, same question, the political dynamic? It rests with the
:56:24. > :56:28.electorate. The electorate have got to sort out what they want. Lots of
:56:29. > :56:35.Scots are very much enjoying having no council tax raise in eight, nine
:56:36. > :56:38.years. That is coming in as well, potential increases, higher bands.
:56:39. > :56:43.It should go into local government spending. That will end. Free
:56:44. > :56:47.tuition, free prescriptions, the voters have got to decide what they
:56:48. > :56:53.want. Do they want better services? How will they pay for it? Or lower
:56:54. > :57:01.costs from taxation and levels the NEET -- and levies and so on? There
:57:02. > :57:06.is a point at which the tensions will represent itself in the way
:57:07. > :57:09.people behave at the ballot box. That is what Nicola Sturgeon and
:57:10. > :57:17.Derek Mackay are very nervous about. Very briefly. Let us look at how the
:57:18. > :57:20.electorate voted earlier. It started to go to the right, Ruth Davidson,
:57:21. > :57:25.shifting to the right of the country. Thank you very much indeed.
:57:26. > :57:32.They have moved on to a different one which is the DC. They are taking
:57:33. > :57:38.off the Christmas jerseys now. -- easy. There is not much festive
:57:39. > :57:41.spirit around the budget. The other parties, they are not signed up and
:57:42. > :57:46.it needs support from at least one party or acquiescence from at least
:57:47. > :57:51.one party. You can catch up with the budget on this channel at 2:30pm
:57:52. > :57:55.with my colleague, Gordon Brewer, this afternoon.
:57:56. > :58:02.about his love for American folk and roots music.
:58:03. > :58:05.Did you have a sense that you were playing with a living legend?
:58:06. > :58:38.Welcome to Cash in the Attic, the show that finds
:58:39. > :58:40.all those hidden treasures around your home
:58:41. > :58:44.I've come to Surrey, to meet a lovely lady,
:58:45. > :58:47.whose house is packed full of collectibles,