15/12/2016: First Minister's Questions Politics Scotland

Hello there and a very warm welcome to the Scottish parliament here at

Holyrood. Its budget day, the finance secretary will set out the

details of his spending plans this afternoon but also his proposals on

new tax powers in place for the first time. Of course, some of those

topics may arise and questions to the First Minister. Let's cross to

the chamber and my colleague Andrew care. Brian, thank you. Welcome to

the chamber. John Swinney, the Education Secretary has just sat

down finishing general questions. Here is the Conservative leader,

Ruth Davidson. In gauge ready to take forward the Government's

project for Scotland. We're used to watching budget U-turns after they

have been given, but it's quite something to seize something falling

apart before it is even been published. The SNP Government has

been telling us for months that it will press ahead with this flagship

plan to raid council budget to paper and a fund. Now, a few hours before

the most important budget in this Parliament's history, we cured that

policy has been dumped. Is this not a shambles, First Minister? I do

concede that Tories know quite a lot about shambles. The chamber does not

have too long to wait until Derek Mackay outlines the Scottish

Government's budget. It is a budget that will deliver in the fool on the

commitments we have made two extra investment in our schools to tackle

the attainment gap and raise standards in our schools. It's also

a budget that will deliver fairness for local Government services.

Overall, it is a budget that will ensure we invest in our economy,

protect public services and ensure fair treatment for householders. So

I think people across the chamber, no matter how much they might like

to moan about the budget, will have two welcome it when they hear it

this afternoon. APPLAUSE

It's a bit late to say wait until 2:30pm. It is on the front pages of

today's papers. I don't know if the First Minister has taken the time to

speak to anyone in Koestler who was at that meeting on Tuesday because

if she had, I am in no doubt that she would confirm that this story in

today's press is 100% true. But let me say here, if the SNP is going to

dump this plan, then good. Because local communities were right, they

were absolutely right, to say no to a national Government wanting to

snatch local funding. But here is the thing, here is the thing that

many people will be asking today, back in Septemberback in September,

all of the opposition parties in this Parliament sent a crystal clear

message to the Government telling it to ditch this proposal. And you

would think that something that put us and the Greens on the same side

of the argument might have been a warning shot that there was a

problem. And yet, this Government ignored Parliament. The ignored

councils and they have only climbed down out of the last minute because

they have been told it will not work. Everyone else this coming, so

why didn't they? I thought the comedy turn it out and use was

normally reserved for Willie Rennie. It seems there is a new income but

in that post today. Can I just checked, presiding Officer, that I

have Ruth Davidson's position correct. I think what I'm hearing

her saying is this to the Scottish Government, how dare you dump a plan

that we absolutely demands that you don't? That appears to be Ruth

Davidson's position today. When the budget is outlined in a couple of

hours' time, what Derek Mackay will outline is the absolute

determination of this Government to do what we promised we would do it,

invest more money on schools to raise standards, to help teachers

and to close the attainment gap. And what the chamber will also hear is a

budget that delivers fairness for local Government services and I

think when the chamber does hear the budget, some of the claims and

accusations that we have been killing in recent days from --

hearing in recent days, will appear rather silly. When she talks about

claims and accusations linking local Government funding to the attainment

fund, does she mean those given by her deputy who said, we got a

mandate to raise an additional ?100 million per year through our council

tax reforms specifically for raising educational attainment? Because that

sounds quite specific to me. But the real answer today, all this chaff

aside, is that they thought they could make councils pay for a

Scottish Government policy and councils told them to take a running

jump. So now we have two shoon, despite their complaints and a long

list of grievances, that Mr Mackay is able to find a spare ?100 million

down the back of his stuff to pay for the attainment fund himself

unless, of course, the plan is to lock an extra ?100 million off the

councils central Government grant. Who is now playing for it? Is it the

councils or the Government? I am confused at this line of

questioning. I can't work out whether she wants us to do something

or if she doesn't want us to do something. We don't have long to

wait to hear it this budget being outlined and I do think when we hear

it being outlined, Ruth Davidson will look back on her line of

questioning today, particularly that last question, and concludes that it

probably was not be more sensible line of questioning to have pursued.

This budget will deliver on the promise we made to get extra

investment into schools, it will also deliver fairness for local

Government and it will respect local democracy and accountability. I

would have thought each and every one of these aspects of the budget

would be things that people across this chamber would welcome. I

certainly hope that will be the case. The budget that Derek Mackay

will outline in just over two hours' time is a budget I am extremely

proud to outline for this Government and I hope the entire chamber gets

behind it. Sounds an awful lot like instead of taking the money out of

councils' front pocket, you will dig it out of the hip pocket instead.

This morning's headlines make it pretty clear that the very moment we

needed Scottish Government in control, instead we have one that is

distracted and utterly adrift. One which has... One which has allowed

us to fall behind the rest of the UK in 25 out of 30 key economic

indicators. This is deterring investment because of the threat of

a second independent referendum which tries to spin its way out of a

rise in unemployment by pretending that the rises in unemployment is

not happening. Presiding Officer, the spin and the drift needs to end

because what we need right now, more than ever, is a Government with a

real focus on the economy using the powers that this Parliament now has

two create new jobs, not deterring skilled workers with the highest

taxes anywhere in the UK. So the First Minister is right about one

thing. It is deserted time in two and a half hours' time. This

Government is either for keeping Scotland competitive so that we can

grow the economy or it is for taxing people more and putting a block on

growth. The First Minister cannot have it both ways, so which is it?

Nobody watching this will have any idea what on earth Ruth Davidson is

asking me. LAUGHTER

I don't think she knows. Totally confused and shambolic. You always

know when Ruth Davidson is drowning at First Minister's Questions

because she gets onto an independence referendum. It is the

straw that Ruth Davidson keeps cutting out. As I have to say it is

a bit ironic that she talks about economic uncertainty on the very day

we see a story in the media, and she's very fond of citing stories in

the media, that the UK Government is being advised by its own EU

ambassador that it will take ten years to get a new deal with the EU

in place. That is the economic uncertainty that is being created

for businesses across this country and it is entirely... It is entirely

on the Tories' watch. But let's get back to the budget. I think when

Ruth Davidson here's Derek Mackay's budget later on, she will look back

at the start of that long and winding and confused question she

asked me and realise how misinformed and ill informed it was. This is not

about taking money from local services, this is about investing in

local services and that will be the hallmark of the budget this

afternoon. But let me take you back to the core issue here and that is

raising attainment in our schools. I have made absolutely clear the

priority I attach to that, the Deputy First Minister attaches to

that and this entire Government attaches to that and when we see the

budget this afternoon, what the chamber will see and what Scotland

will see is a budget that matches the investment to the ambition we

have to make sure we raise standards in our schools and create a

world-class education system. Kezia Dugdale. To ask the First Minister

what engagements she has planned for the rest of the week. Noes

engagements to take forward the Government's programme for Scotland.

Today's Judgment Day. The day when the SNP will prove beyond doubt that

they would rather pass on Tory cuts then use the power of this

Parliament to do things differently. And nowhere is that clearer than in

our education system. The last two weeks have exposed a decade of

failure under the SNP. Even SNP councillors are now speaking out. In

Dundee, they have said that the real problem in education is not who runs

the school budget, it's the fact that the budget are being cut. Does

the First Minister agree with her SNP colleagues in Dundee? I agree,

we need to see increased investment in our schools. That is what the SNP

pledged to deliver when won the election in May and that is exactly

what Derek Mackay's budget will deliver this afternoon. I hope the

First Minister has read this paper from her SNP colleagues in Dundee to

the Scottish parliament. It is pages and patents of a plea to stop the

cuts to education because the truth is there is nothing progressive

about the SNP and we still we saw that yesterday. The SNP once again

voted with the Tories against a 50p top rate of tax for the richest 1%.

And we see it in the state of our schools. Ten years of the SNP has

led to falling standards, a shameful gap between the richest and poorest

children and more than 4000 fewer teachers. Whatever spin she put on

the budget this afternoon, does the First Minister really think it will

reverse a decade of damaging cuts? APPLAUSE

Of course, what we saw this week was an increase in teacher numbers and

part of that increase in teacher numbers, of course, was delivered as

a direct result of the attainment fund set up by this Government. What

we also see just to date is evidence of a narrowing of the attainment gap

in terms of access to universities and we have said that we are

determined to go further in our universities and in our schools.

That's why we had the data published this week so that we could make sure

that we focus absolutely on raising standards, closing that gap and

holding Government to account for that. In terms of our tax policy is

more generally, I seem to recall yesterday at decision time, Labour

voted with the Tories against the position of this Government but we

put our tax policies for words to the people of Scotland is in the

election. I know that Kezia Dugdale doesn't like being reminded of the

election in May because she let her party to the humiliation of coming

third in that election, but in that election, we put forward fair,

balanced tax proposals and the people of Scotland endorsed them and

we will deliver them in our budget this afternoon. I know that the SNP

Government has a problem with its numeracy standards, but surely even

the First Minister can see that an increase in 250 teachers in one year

doesn't take away a loss of 4000 over the last ten. And there are

teachers... There are teachers and there are janitors and there are

care workers uniting outside this chamber to date against SNP cuts,

cuts which are damaging value to public services, cuts which Nicola

Sturgeon has spent her whole life saying she could stop if only she

had the powers. Well, now the first Mensah has the powers and she is

refusing to use them. So local services will face more cuts, cuts

which will hit everybody but hurt the most vulnerable. Labour will not

vote for a budget which will inflict such pain on Scotland. The question

is, why would the SNP? Well, we want because what we will outline this

afternoon is a budget that out lines public services. When we hear the

budget this afternoon, not just the questions we heard from Ruth

Davidson but some of the questions we have heard from Kezia Dugdale are

going to turn out to be complete the unfounded because what we will

outline is a budget which supports our economy, protects public

services and make sure that we do not for -- further punish hard

workers. The question when we hear the budget this afternoon is not why

this Government would vote for it, we are proud of it. It's like

anybody else in this chamber would not fall for it because it is a fair

budget, a good budget and I hope the entire chamber will get signed it.

-- would not vote for it. Constituency supplementary is. Is

the First Minister aware of the level of concern about the proposal

to remove inpatient beds from the Centre for integrative care, a

change which has been deemed not to be a major one by the Scottish

health Council must the anger of patients and campaigners across

Scotland? With the First Minister explain what happened to the pledge

made by the Health Secretary during the election that she would consider

giving the CIC National funding and would she and the Health Secretary

agree to meet with campaigners before the meeting of the health

board next week? The Health Secretary is or is happy

to meet with campaigners and patients. The decision about whether

the changes deemed a major service change has been informed by the

Scottish health council. We asked them to look at it and give us

advice as whether meat to whether they are major and the advice around

it is that it is not a major service change because of all of the other

proposals coming which have been deemed major change service

proposals, and this is the right way to major these decisions and that is

something that should be recognised across the Chamber. The Health

Secretary will continue to engage with patients on this issue and

others. First Minister, on Sunday, over 500 people complained about the

transfer of oil between ships and open seas over the Murray first, a

plan creating no jobs but putting at risk the marine environment and

coastal communities and the tourism industry. In 2007, the Scottish

Government opposed a plan like this for the Firth of Forth. Will you

personally review the Scottish Government's position on this and

join the growing opposition to it? I absolutely understand the concerns

people are expressing, as John Finnie will be aware it is a matter

reserved for the UK Government. The Scottish garment has repeatedly

requested devolution of this function since 2014 but currently we

have no formal role in the process despite having evolved

responsibility to protect the environment. I believe the step

could try state for transport and the UK, must take account of the

advice previously given by Scottish actual heritage and the Scottish

Environment Protection Agency -- the Secretary of State for Transport.

I'm sure the Environment Secretary would be happy to meet with John

Finnie to discuss the matter further. The First Minister may be

aware of my constituent, Angela McDonald, who faced going to England

or Northern Ireland because of a shortage of appropriate neonatal

cots in the NHS in Scotland. She bypassed the maternity unit, there

were no neonatal cots in Paisley, she ended up in Fife without family

or friends. Then she was told she might need to go to Newcastle or

Belfast because they had a pressure on neonatal cots. This is simply

unacceptable. Can I ask the First Minister why there were no suitable

cots in all of NHS Greater Glasgow and Clyde, why there appears to be a

shortage of cots across Scotland, wider resources to buy equipment do

not appear to be there and if she agrees that this was unacceptable,

what will she do now to stop women travelling hundreds of miles to have

their babies? Firstly, I'm not going to comment on the individual case, I

have read the media report of that and the Health Secretary would be

happy to correspond with Jackie Baillie about the particular

constituency case she races. I simply say I hope her constituent

and baby are doing well and I wish them all the best. In terms of the

general issue, around maternity and neonatal services, these are vitally

important services in our country, that is why we commissioned the

review and the outcome into maternity and neonatal services is

due next year. That will look across a range of these issues to make sure

we have the right services and the right configurations in place across

our country to make sure mothers get the best possible care. When will

the Cabinet next meet? On Tuesday. It is not a new habit but it is a

bad habit of politicians to criticise an opponent for a policy

we do not like and then criticise them again when it is reversed. Can

I warmly welcome the change of direction that appears to be

happening on the decision to raid local tax revenues to fund a

national policy? The Green Party have been consistent in arguing that

local taxation should be for local priorities and local decision-making

and if this is going to be a change of direction, it will be a positive

one. But if the reason for it is an inability to get agreement between

central and local government, surely there are two consequences. One for

national government, the Scottish Government, that the ability to make

Scotland wide decisions on policy, investment in services, it has to be

funded by national taxation powers and that is exactly what those tax

powers are for. Secondly, for local government, that they also need the

flexibility, unhampered or central control, to make decisions about tax

rates at local level to meet local priorities because these are the

people working hard in every community to deliver the services we

all depend on every day of our lives. Well, obviously I am not

going to comment in detail on the budget because Derek Mackay will

outline that shortly. I have said a number of things in response to

other questions and I hope that when the Chamber hears the budget this

afternoon, there will be a recognition that what I'm about to

say is absolutely at the heart of the budget. We have put together a

budget that protects nationally funded public services, a budget

that will absolutely deliver on our commitment to get extra investment

into schools, to help us raise standards and close the attainment

gap, and a budget that seeks to protect local services and also

respect local Chrissy and accountability. These are three

important principles and I believe we will put forward a budget that

delivers on every one of them -- local democracy. The First Minister

saying, I am not going to comment that was a phrase we all expected to

hear and we understand that we will hear the detail later, but I was

asking about the broad direction of travel. If the First Minister is

describing correctly a budget that will protect national services and

local services from cuts, I will look on that with an open mind. No

party gained a majority yesterday in the Chamber on the debate on

taxation. No party including the government was able to convince a

majority of the Parliament of its own tax position. Some have

described it as a stalemate and it is in all of our interests to avoid

that kind of stalemate when the budget itself comes for a vote or

when the rate resolution, tax rates, come to a vote. But it is

significant that SNP, green, Labour and Lib Dem MSPs were united

yesterday in rejecting the Tory ideological demand that taxes should

be no higher in Scotland. If we want to avoid that kind of stalemate, all

we need to decide is who is going to be paying more taxes and we believe

in the green party that it should be people on the wealthy end of the

income scale, not those who are low earners. Can the First Minister

confirm that people like ourselves, MSPs, ministers in the Scottish

Government, on high incomes, we will be paying more in tax next year than

this year? I will let Derek Mackay set out the details of the budget

but we put our tax policies to the electorate, we put our national tax

policies and local tax policies to the electorate and we emerged by

some considerable distance as the largest party in this Chamber. More

broadly, I welcome the fact that Patrick Harvie says he will listen

to the budget with an open mind because I think he will find and

hear plenty in the budget that he can agree with. I would also say to

him that it is important that we seek to build progressive alliances

in this Chamber and I am certainly very happy and very willing to do

that. I think what we will find this afternoon is that there are acres of

common ground in this budget that we can all build on. I look forward to

working with those across the Chamber or at least in certain parts

of the Chamber to try to build that progressive alliance that supports

our economy, public services and make sure we deliver fairness to

people across this country who are already starting to pay the price of

the higher inflation imposed on us by the Tory Brexit obsession. These

are the principles at the heart of our budget and I hope everyone will

be able to support them. APPLAUSE

Supplementary, the first from Richard Lochhead. Will the First

Minister join me in condemning Halford to want to charge one of my

constituents and astonishing ?50 for delivering a pair of car towels?

They have implied the higher charge is to put off customers in the north

of Scotland from ordering. So much for the season of goodwill. Will she

agree that as more and more all residents buy online in the run-up

to Christmas, they should not be treated with this content or fleeced

by companies or disconnected against for living in the north of Scotland?

Can I ask if the first list and her colleagues in the government will

put pressure on to the UK Government to support this out -- to sort this

out once and for all? He raises an important issue and yes we will

continue to apply pressure to the UK Government to take action. The level

of charge that Richard Lochhead has outlined today is shocking. It is,

based on what he has said, vastly out of proportion. I am in full

agreement that excessive charging is unacceptable, particularly when we

know that more and more customers are taking advantage of the benefits

of shopping online. That is why we played an active role in developing

a statement of principles for delivery charging which reputable

companies should adhere to. As Richard Lochhead has alluded to, the

UK Government has the power and indeed the obligation to prevent

this kind of situation from a rising and we will continue to press them

to do much better by rural citizens than now -- from arising. Since

February, the Scottish prison services had the power to release

prisoners up to two days early so that they can access services in

their community, a move supported by parties across this Chamber. The

Scottish Government's policy memorandum at the time stated some

4000 prisoners year are released on a Friday and that release on the

days preceding weekend is, I quote, consistently raised as a key barrier

to accessing services. I have now found that in the ten month since

that provision was made available, it has only been used for one

prisoner. What is the First Minister's assessment of the usage

of this power? It is an issue that sounds as if it is one we should

look into further. I am happy to do so. I do not have the detail now.

The reason for the policy that he has outlined is to help prisoners

before the release reintegrate and access services and it is very

important to reduce reoffending. I will look into this and have the

Justice Secretary write to him. Humanity is dying before our eyes

and the world looks on helpless. Looking at the seams of Aleppo, I

feel angry, broken, helpless and lost, angry that this could happen

in our world, broken because I can only imagine if that was my children

staying awake at night because of the sound of gunfire and explosions,

my boys whose only hope in life was to stay alive, helpless because I do

not know what I or anyone ask: do to make a meaningful difference, and

lost because every option I think of it can only mean more bloodshed and

filers. We need to do something but I honestly do not know what that

something is. I know warm words will not save a single life in Aleppo,

but I hope all of us in this Chamber can encourage people across Scotland

to take part in humanitarian responses in Syria and also send a

strong message of solidarity, humanity and peace to every man,

woman and child struggling in Aleppo.

APPLAUSE Can I thoroughly endorse his

comments? And I also share his sentiments expressed to the Chamber

today. Each and every one of us finds the scenes we are witnessing

on our television screens nightly at the moment from Aleppo to be

heartbreaking and deeply, deeply distressing. It is very difficult in

the circumstances for a new of us to see what should be done to resolve

the situation. -- for any of us. But we know the world cannot on this

occasion, as it has done so often in the past, continue to stand back

while the scenes of slaughter and destruction happen before our very

eyes. There are things I think we should be supporting, more of a

humanitarian intervention, I think the suggestion of humanitarian

airdrops, for example, should be further discussed. Evacuation of the

wounded, for example, Red Cross evacuation is happening as we speak

and I think we should be supporting more of that. There should

absolutely be a determination to hold anyone who is guilty of what

would be war crimes to account for their behaviour in the international

community -- and the international community must unite behind that. I

endorse his plea that we should bear the humanitarian crisis in mind and

seek to do what we can as individuals to help with the granite

airing effort. More widely -- with the humanitarian effort. It does not

take away from the horror we are witnessing but this time last week

after First Minister's Questions, I visited a group of Syrian refugees

who arrived in Edinburgh around this time last year and what I saw was a

number of people still suffering trauma and real anxiety and concern

about relatives in other countries or in some cases still in Syria. I

also witnessed what can happen when as a society we come together and

act in a humanitarian way, giving refuge, it think a home to people

who need it. Let us hope today, as we hope on all days, but

particularly so close to Christmas, that we can see a future where the

love they stunned humanitarian instinct can overcome the horror

that we witness all too often -- where the love based on that

humanitarian instinct can overcome the horror that we witness all too

often. I'm sure we can all welcome the

children 50 additional teachers in Scotland, funded by this contraband.

When we hear the budget later on, does this not reinforce the message

that all politicians whether in this chamber or in local Government

should get behind, fully get behind, the attainment Scotland fund. I hope

the entire chamber will get behind the attainment Scotland fund.

Indeed, the attainment challenge which is focused on raising

attainment in our schools, I certainly have been very clear about

the priority I attach as First Minister to the work that it

supports. The teacher numbers figures that were published earlier

this week showed an increase in teacher numbers but it is quite

important, I think, as part of that increase that many of them were

funded directly through the attainment fund. That is a

relatively small number because the fund are still in its early stages,

but it is a demonstration I think of the power of that kind of directed

and targeted resource and the budget this afternoon will set out our

plans to ensure that that kind of approach continues. To as the First

Minister what discussions the Scottish Government has had with the

oil and gas industry in light of recovering oil prices. The Scottish

Government has worked closely with the oil and gas industry through the

work of the energy jobs tax force to overcome the challenges it has faced

as a result of the downturn. While oil prices have recently risen

slightly, we are under no illusion about the challenges the sector

continues to face. Of course, the UK Government holds the main levers to

support the sector and we are disappointed that they provided

nothing new to support in the Autumn Statement. We remain committed to

supporting the sector and of course with up to 20 billion barrels of oil

still to be recovered from the North Sea, it is clear that with the right

investment and interventions now, the industry can and will have a

bright future. I thank the First Minister for that response.

Yesterday I received an update from BP, as I'm sure other North East MSP

state, in which their CEO is quoted as saying the myth that the North

Sea is finished is absolutely that. There is a demonstration of new

activity and new big fields coming on stream. There is real economic

activity that will support thousands of jobs and there is an active

exploration programme that could create something really new and

exciting. Given that the Westminster Government have completely failed to

support the oil and gas sector and the north-east of Scotland's

economy, can be First Minister outlined what work the Scottish

Government is doing to maximise investment in this vital sector and

to encourages exploration? The finance secretary wrote to the

Chancellor in advance of the Autumn Statement outlining further action

the Treasury could take to support the sector at this time, including

vital measures to stimulate exploration. I think it is

disappointing that the Chancellor chose not to act I hope we will see

further action from the UK Government over the months to come

on exploration, but also around the operation of decommissioning tax

relief which is also very important in terms of the stage the North Sea

sector is at right now. The Scottish Government will continue to do all

we can to support the industry. The tax force I mentioned remains

focused on supporting those who are affected today, but also looking to

the future to lay foundations for a vibrant industry for decades to

come. The ?12 million transition training fund established by the

Scottish Government has been very successful supporting sofa over 1200

people who have been made redundant to be retrained. These are tangible

efforts to support workers in the industry and through the city deal

with the UK Government, although the Scottish Government is investing

more in terms of infrastructure, supporting Aberdeen and

Aberdeenshire to make sure they have the infrastructure they need to

compete in the future. Can I quote directly to the First Minister what

oil and gas UK said in response to the Autumn Statement? We are pleased

to hear the Chancellor recommit to HM Treasury's driving investment

plan today. This sends a strong signal to investors that the

Government recognises that the UK oil and gas tax regime needs to be

predictable and internationally competitive. Presiding Officer, when

the industry is so positive about the UK Government action, why can't

the First Minister be? Of course, the industry... The oil and gas

industry have been calling... I attended a meeting a few months back

in Aberdeen with oil and gas UK and we discussed some of the particular

issues that I have been talking about today, further support for

exploration and in particular how decommissioning tax relief is dealt

with to make sure that it can also support a new entrance into the

sector. These are important practical measures. I recognise some

of the earlier steps that the UK Government took around investment,

for example, but I think all of us should say that there is more that

needs to be done and we should unite in order to ask the UK Government to

do it. I think that is a privately reasonable approach. In the

meantime, as First Minister, we should make sure that we match our

commitment to support retraining, upscaling, efforts to ensure that

when the industry does recover, as it will, we still have the skills

and abilities of Scotland to ensure that it can flourish. If we work

together, I think it would be a good thing to do on this as it would on

other things as well, then we can make sure that this vital Scottish

industry has the support it needs and can have a very bright future

indeed. To ask the First Minister, in light of recently reported

issues, what action the Scottish Government is taking to ensure that

farmers can have confidence in a National Basic Payment Support

Scheme? Clear that it is important that it is important to learn from

all issues recent reported to give farmers confidence. We have followed

all of audit Scotland's recommendations and some internal

actions are being undertaken. It is crucial that this does not risk

delivery to farmers and crofters and I would hope that all members would

agree that the thing we can do to give farmers must confidence in the

2016 scheme is to deliver it by the end of June. The timescale was set

up by the rural economy secretary. That is what he, me an entire

Government is focused on achieving. I'm grateful to the First Minister

for that answer. Last week, Scotland's rural communities saw her

Government over pay loans to 106 26 farmers to a total of ?746,000 and

we also saw a foul up with the efficiency schemes data protection

which has led to a breach with thousands of e-mails addresses

accidentally release. All on top of a dismal record on giving this EAP

payments to farmers and crofters. Will she commit to delivering this

year's balance of the cap payments as soon as possible and by the very

latest by June of next year? Yes, that is what I just said we were

absolutely focused on doing. In terms of the data protection issue,

that is a serious matter. It was a human error within the Government

and appropriate action will of course be taken to ensure that those

errors do not happen in the future. In terms of the overpayment issue,

that was identified on the day of the issue of the loans, affected

businesses were contacted the next day and an apology was issued and

discussions have taken place about how that money will be repaid.

Prompt action was taken to alert customers about the overpayment and

agreed repayment. On the more general issue, the issue I think

farmers and crofters are of course concerned about, over 12.5 thousand

farmers and crofters have now received a nationally funded loan.

The total loans amounted to ?256 million and that is getting money

into the pockets of farmers, where it needs to be. Fergus Ewing has

been very clear that we are very determined that the scheme will be

delivered in full by the deadline of June next year and I think the

member will get behind him and the Government as we seek to ensure that

that is the case. Almost one third of foreign businesses are so

confident about the Scottish Government's loan scheme which

closed yesterday that they are not taking it up. This means that over

?200 million that was due to be spent in the rule economy this month

because the December every year, that money is sitting in the

Scottish Government's bank account. Does the First Minister... She is

laughing at best, but does she not understand that the continued

failure to deliver farm entitlements, because that is what

they are, on time is damaging our whole global economy? Well, we are

absolutely focused on making sure that we support the rural economy.

In terms of this question about the loan scheme, we made a loan scheme

available. It was the right thing to do and I think it was widely

supported not just across this chamber but by the industry as well.

With the greatest of respect, I cannot force farmers to agree to

take a loan. The offer was made. Many farmers have taken that up and

as I have said, 12,500 have received a nationally funded loan. If some

farmers and crofters opt not to take that long, that is their decision

and it is a decision that as the Government we have to respect. In

terms of the payment of the overall scheme, in terms of last year's

scheme, 99% of payments have been made there and we are absolutely

focused on making sure that we were the lessons from that so that

payments are made by the June deadline that we have been speaking

about. I have repeatedly on previous occasions, and I have no hesitation

in doing so again, apologising to farmers and liberal economy for the

mistakes that were made and the delays that were encountered in the

2015 scheme. We are determined to learn lessons to put it right and

ensure that we meet the deadline next year and that is what we will

do. To ask the First Minister what the Scottish Government's response

is to be figures released by the Care Inspectorate that show that 70%

of four-year-olds were recorded as receiving funded childcare. I think

it's very important to note, and I hope Mr Johnson will not it, that

the 70% he has derived from the Care Inspectorate's figure is based on a

trial statistic numbers of funded four-year-olds and that the Care

Inspectorate itself has said that these are trial statistics and may

well be incomplete. In fact, its own report clearly indicates that the

data has been collected for the first time and states, there are

some uncertainties regarding the data quality. I and the Care

Inspectorate would therefore urge caution in drawing conclusions from

the statistics. The member may note that the later statistics published

by the Scottish Government this week which are validated and quality

assured statistics showed levels of optics for four-year-olds remain

close to your arousal levels. I thank the first that answer. Fair

funding for our kids have been telling the Government for two years

that the that the way the Government measures childcare is wrong and that

children are missing out. It is ludicrous to rely on statistics that

show rates well over 100% in some areas. They Care Inspectorate

figures confirm how misleading the Government's figures are. If we

cannot have confidence in the Government's figures on the uptake

of 600 hours, can we have confidence that we are on track to deliver

double that especially when the Government's blueprint on childcare

has already been delayed? I'm very happy to ask the Minister for

childcare to write to the member to set out some of the details of this

because I think it is important that people understand it. The figure

from the Scottish Government's figure is and these are quality

assured and validated figures of 98% for four-year-olds, we have

recognised and partially recognised as a consequence of our discussions

with Fair Funding For Our Kids but that there will be some duplication

in that. But taking that duplication into account, there is confidence

that the figure will be over 95% of four-year-olds registered for their

entitlement for childcare. That is very close to universal levels. I

have equally conceded in this chamber many times in the past that

we must do more to increase the flexibility that we are offering and

there is work underway with local councils to do exactly that. We are

now focused and this will also be reflected in our budget this

afternoon on doubling the position over the lifetime of this parliament

because it is the doubling of the provision that will deal with some

of the inflexibility is that parents understandably find difficult. This

is an absolutely vital policy, vital for the good of our young people,

vital for parents helping them get into work and one that I will be

very proud of the half of this Government is he implemented over

the life of this Parliament. Cala First Minister outline how much

money the Scottish Government has invested in early learning and

childcare and how much local authorities have spent? Does she

agree with me that it is the height of hypocrisy for Labour politicians

to come to this chamber the morning plc funding when Labour councils

like Fifa have taken Scottish Government funding and run? One

thing we know, and we know it from the financial review that was

carried out, is that the expansion in childcare to 600 hours has been

fully funded. Local authorities have been provided with ?500 million for

that since 2014. Of course, we are committed to further funding to

support the doubling of provision that I have already spoken about and

the draft budget will touch on this later today. The financial review

also highlighted the estimated significant underspend on the

funding given to local authorities to support the expansion to 600

hours. I expect local authorities to spend the funding we make available

to them, to provide the outburst, flexibility and choice that parents

and children have a right to expect. I also expect to see clear progress

from authorities with low levels of registrations but which have failed

to make full use of their funding. These are important issues. It is

vital that we fund these commitments but then local authorities must use

that funding to deliver those commitments. That includes First

Minister's Questions. It was very largely overbudget warm

up in call using -- including the closing remarks, talking about

working collaboratively with local government, the remark from the SNP

backbencher saying that sometimes it does not always work that struck as

well as the budget remarks. Quite intriguing and remarkable

intervention on the subject of Aleppo, emotive and emotional.

Perhaps indicating also the difficulty and futility to some

extent of efforts by Western governments to address the problem.

Joined by two colleagues, Lindsay McIntosh, Severin Carrell, the

emotional tone of that contribution and the First Minister, really quite

striking. It did strike a different tone on a day when I think issue was

taken up by political sniping over the budget. It struck a very

different note on Aleppo and it was very emotive and it was one of those

questions where the parliament acquits itself very well... Angry,

helpless, broken and lost. He has got sons, thinking, if those were my

children in Aleppo, being kept awake at night by the sound of gunfire and

bombs, I feel broken because I cannot do everything. The very fact

he said, I cannot do anything, it stresses to some extent that almost

futility of such an emotive intervention when nothing can be

done. That is right. Assad's retaking of Aleppo which is the

endgame of a conflict going on for four or five years and it is the

consequence of a failure of taking the right kind of action for five

years ago, or a consequence of Western governments participating in

this conflict as a proxy war. The best thing the Scottish Parliament

could do in my view would be to start calling for some kind of

support for the UN, some sort of international organisation that has

the power to go in and help the people most affected. This is a

consequence of four years. Problem is allowed to fester and blow up. I

could not help thinking to myself when I heard the words of Wilfred

Owen's poem, a sunbeam... Let us move from that of the budget. Two

camps to some extent, the spending and tax elements. Spending,

confirmation from the First Minister pretty well but there will be more

money for education which is not going to top slice the higher bands

of council tax. This was one of the most controversial proposals we

thought would be coming in the budget. The increase in council tax

being used in education. But crucially not to allow the

individual authorities which raised the money to spend their own money.

It was going to be brought back into a central pot and then redistributed

to council areas that needed it most to close the attainment gap. It

looks like Derek Mackay is going to reverse away from that and we do not

quite know what he is going to do to close the attainment gap because

clearly something needs to be done. This is Nicola Sturgeon's number one

priority, closing the attainment gap in education. What is she going to

do? She was adamant that however it is done, it will be done. She was

challenging others to back the attainment fund process. Presumably

that means they have some other challenging proposition. They will

have to arrive at some sort of formula to allow them to produce the

money, it has got to come from somewhere, because they are capping

their own capacity to spend money because they are not going to raise

income taxes anything beyond the rate of inflation that we currently

have. Part of the reason why Derek Mackay Nicola Sturgeon decided to

drop this pretty divisive and controversial top slicing of

council... Voted against the shape of the Green motion? They have got

an eye on the local elections in May. This policy would play well in

places like Dundee and Glasgow, but it would play very badly in areas

where there are expensive homes and it would demolish... Aberdeenshire

where the SNP are trying to maintain power? And Edinburgh. It would play

extremely badly in Edinburgh. They do not want to demolish that broad

consensus, the coalition of different parts of Scottish society

supporting the SNP's popularity. What is taking place in the

background, there will be a photocall very soon with the leaders

in their jerseys. We will try to let you look at it. Let us talk again

about the council settlement. Overnight, talk of a 350 million

cut. Nicola Sturgeon said those forecasting that would look silly.

We know that in previous years what has happened with the Scottish

Government budget is that in order to conserve its own budget, its

Holyrood project, it has passed on a plane to local authorities. Those

are the services which really affect people's lives. Organisations

representing Scottish councils have been very good at wetting their

voice out ahead of this budget to say, we cannot take any more pain --

getting their voice. If you cut us again, we will have to ditch

services provided for the electorate, they have said. Nicola

Sturgeon and Derek Mackay have had to say, we cannot do that for a

third time. Hold fire while they get organised with the photocall. Let us

catch up on the views of some of the party leaders, first of all, Derek

Mackay on the subject of the budget that we are expecting this afternoon

of course. I can confirm the draft budget will respond to the

challenges presented by the EU referendum and UK Government

austerity, deliver positive steps to build a nation with the dynamics

sustainable inclusive economy supporting all of Scotland's

regions. Scotland's economy is underperforming the rest of the UK

and this matters because from next year half of the money spent by the

Scottish Government will have to be raised in taxes here in Scotland. We

want to see the budget prioritise in measures to grow the Scottish

economy and we are very clear we will oppose any budget measures to

tax Scottish families and businesses more highly than those in the rest

of the UK. What I'm expecting to see if hundreds of millions of pounds

worth of cuts to vital public services and we talk about the

funding for local government but what we are talking about is the

money going into schools, paying for care for elderly parents, the

resources our teachers use and we have seen substantial cuts already

and councils are saying they cannot take any more. I am very much hoping

that we will hear positive news from Derek Mackay but I think we will see

swingeing cuts once again. The intriguing conundrum on taxation,

the Labour Party want to put up tax, focusing yesterday on the 50p

proposed tax rate, they want 1p increase across the bands, the

Conservative saying, we do not want tax in Scotland to be any way higher

than south of the border. Let us talk about what is being proposed by

the Scottish Government, what do you expect from Derek Mackay on tax? I

expect him to stick with the formula set out by John Swinney which is

allowing the rates to increase by the rate of inflation, nothing

dramatic. They have a real problem, they need to maintain the

relationship with middle-class voters, they need to show they are a

country open for business and welcoming to people that want to

learn proper wages, but at the same time, they have a pension. It is the

question about dealing with the tension, needing also to fund public

services they are committed to delivering. It is very delicate and

difficult to balance it, for Derek Mackay today. He will try to use the

fact that he is in the sensible middle of the consequence. Severin

is right. Politically, he is in the right place. Earlier you had Ruth

Davidson shouting for a Scotland not to be taxed higher than the rest of

the UK and Kezia Dugdale shouting for an increase in taxation to fund

public services. Nicola Sturgeon right in the middle saying, Tories

are saying this, Labour saying that, I am taking the centre ground. The

proposal is not that people in Scotland pay more tax than they are

paying at the moment. But they will end up paying more tax... The

Chancellor's proposals would drive down the bill for higher earners.

That is not strictly true. What it effectively means, if we increase

the starting band or starting of different brands by inflation, in

cash terms, they will be paying less tax, in real terms, it should be the

same. The formula, the framework for Derek Mackay on this, it is

different because it has additional capital borrowing, capital

allocation from the Treasury. He has an extra ?820 million to spend on

capital projects and infrastructure, so there will be scope for them to

move money around. The Guardian has reported about the fact they have

lost nearly ?1 billion worth of capital borrowing because of a

problem with privatisation programmes. At the same time, they

will lose ?450 million from borrowing, but they will gain a

couple of hundred million pounds from capital revenue directly from

the Treasury and that should allow them to shift some projects that

would have been funded from day-to-day revenue funding onto the

capital budget. That may free up money. We may find fairly elegant

manoeuvring on the accounts here to allow them to free up cash, for some

of the headline spun -- headline public spending rejects. The

economic question, which of the two attacks will worry the most? The

Tory attack, charging people more than people in England, or the

Labour attack that it is an ambitious? Possibly the Labour

attack. We have seen polling which suggest that people are becoming

less happy with the way the Scottish Government is dealing with its

devolved responsibilities. If Labour put forward a proposal saying that

we could have more money for services, better provision for

Scots, Scots might think, why are you not doing this customer however,

people do not like to be taxed more. Would Labour's proposal work?

Probably not. Polls say, I favour increased spending, and I want them

to pay for it. That is generally the outcome. How do you see this shaking

down on tax, same question, the political dynamic? It rests with the

electorate. The electorate have got to sort out what they want. Lots of

Scots are very much enjoying having no council tax raise in eight, nine

years. That is coming in as well, potential increases, higher bands.

It should go into local government spending. That will end. Free

tuition, free prescriptions, the voters have got to decide what they

want. Do they want better services? How will they pay for it? Or lower

costs from taxation and levels the NEET -- and levies and so on? There

is a point at which the tensions will represent itself in the way

people behave at the ballot box. That is what Nicola Sturgeon and

Derek Mackay are very nervous about. Very briefly. Let us look at how the

electorate voted earlier. It started to go to the right, Ruth Davidson,

shifting to the right of the country. Thank you very much indeed.

They have moved on to a different one which is the DC. They are taking

off the Christmas jerseys now. -- easy. There is not much festive

spirit around the budget. The other parties, they are not signed up and

it needs support from at least one party or acquiescence from at least

one party. You can catch up with the budget on this channel at 2:30pm

with my colleague, Gordon Brewer, this afternoon.

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