Browse content similar to 16/12/2015. Check below for episodes and series from the same categories and more!
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Good afternoon and welcome to Politics Scotland. | :00:17. | :00:18. | |
The Finance Secretary, John Swinney, is preparing to deliver his budget | :00:19. | :00:23. | |
For the first time, he will have to set a Scottish | :00:24. | :00:27. | |
and reaction from the opposition parties, | :00:28. | :00:34. | |
live from the Scottish Parliament chamber | :00:35. | :00:38. | |
And John Swinney will be getting to his feet in about ten minutes | :00:39. | :00:41. | |
to set out those spending plans, which cover 2016 and 2017. | :00:42. | :00:43. | |
My guest for the day is the journalist and political | :00:44. | :00:46. | |
and I'm also joined by our business correspondent David Henderson. | :00:47. | :00:50. | |
David, remind us what these new tax powers are. | :00:51. | :01:01. | |
-- this is not the fowl and the full power that is being exercised today. | :01:02. | :01:14. | |
-- the vow. On income tax, probably in 2018, we can expect full income | :01:15. | :01:18. | |
tax powers to come the way of the Scottish parliament. Those are still | :01:19. | :01:22. | |
being debated by Westminster. They will give complete control over tax | :01:23. | :01:30. | |
rates and tax bands. What we have now our plans which were recommended | :01:31. | :01:43. | |
by the Carmen commission -- Calman commission. Here is how it works if | :01:44. | :01:48. | |
the UK Government cuts 10% from the amount of money that Scotland gets | :01:49. | :01:53. | |
through income tax, it is then left to the Scottish parliament in | :01:54. | :01:56. | |
practice, to John Swinney, to set what rate he wants for income tax. | :01:57. | :02:01. | |
If he sets it at 10%, it raises money back up to where it was | :02:02. | :02:06. | |
before, so we see no change and nobody notices any difference in | :02:07. | :02:10. | |
their income tax bill. He can lower it going he can raise it but if he | :02:11. | :02:20. | |
raises it, of course... ) the difference is he has to set it. They | :02:21. | :02:25. | |
have always had the tartan tax. Even if it is the same commie he has two | :02:26. | :02:29. | |
segment that is my political decision. I have made a political | :02:30. | :02:34. | |
decision not to raise or lower taxes. He cannot just leave it. The | :02:35. | :02:40. | |
decision he makes becomes an easy one because of the limitations of | :02:41. | :02:45. | |
the system. Basically, the power to control income tax requires him to | :02:46. | :02:48. | |
make a decision that applies to income tax right across the piece. | :02:49. | :02:55. | |
So, he cannot raise bands, he cannot raise tax for high earners and | :02:56. | :02:59. | |
reduce it for low earners. It is all or nothing. It is up or down. It | :03:00. | :03:04. | |
affects everyone. As a result, particularly because this measure | :03:05. | :03:08. | |
will not kick in until 6th of April, a month before the Scottish | :03:09. | :03:13. | |
elections, we do not expect him to do anything dramatic or radical | :03:14. | :03:18. | |
today, just leave it. You have a prediction for us. A prediction of | :03:19. | :03:33. | |
sorts. What has amazed me somewhat is, since April, John Swinney has | :03:34. | :03:36. | |
had the ability to borrow money. He has had those powers since last | :03:37. | :03:39. | |
year. He can borrow up to ?380 million. Up until now he has not | :03:40. | :03:41. | |
used those borrowing powers. We have an election in four or five months' | :03:42. | :03:45. | |
time, I would be surprised if we do not see something that John Swinney | :03:46. | :03:49. | |
takes a bit of that money from the borrowing powers just give the | :03:50. | :03:53. | |
economy are bit of the lift, maybe in construction or road building or | :03:54. | :03:56. | |
something as you go towards the May election. He is going to have one | :03:57. | :04:03. | |
heck of a fast construction project if it is going to make a difference | :04:04. | :04:09. | |
next April. If it has been announced and the money is there coming he | :04:10. | :04:12. | |
hopes that will give the feel-good factor to carry him through to the | :04:13. | :04:21. | |
election. Do you think income tax will not change? I would be very | :04:22. | :04:22. | |
surprised if it does. And we'll be bringing | :04:23. | :04:25. | |
you the Finance Secretary's budget But, first, our political editor | :04:26. | :04:28. | |
Brian Taylor is at the Scottish I do not know if you heard what we | :04:29. | :04:38. | |
were saying that possibly a dip in capital spending by using borrowing, | :04:39. | :04:42. | |
leading income tax well alone is that what you are expecting? I think | :04:43. | :04:50. | |
leave income tax well alone. It will take a particularly courageous | :04:51. | :04:52. | |
finance secretary to hike up Scotland prop Mike income tax just | :04:53. | :04:56. | |
weeks before asking the people of Scotland to give an endorsement. | :04:57. | :05:03. | |
John Swinney has suggested he favours the use of progressive | :05:04. | :05:07. | |
taxation powers, by which he means levying a bit more from the | :05:08. | :05:11. | |
relatively well off. The ability to hike the upper rates more than the | :05:12. | :05:16. | |
standard rate, as was mentioned. The Calman plan, which is currently in | :05:17. | :05:22. | |
place, the Scotland act 2012 does not allow that differentiation to be | :05:23. | :05:25. | |
made. The Smith commission proposals, currently going through | :05:26. | :05:28. | |
the new bill, would allow that to be made because it would alter all of | :05:29. | :05:43. | |
the income tax rates and bands. The Treasury says some 14% increase over | :05:44. | :05:48. | |
five years. John Swinney says it is fine and dandy but from his | :05:49. | :05:52. | |
perspective it does not make up from the cuts in capital which happened. | :05:53. | :05:56. | |
The Treasury says you are getting more in the wake of cash on | :05:57. | :06:02. | |
day-to-day spending. He says it is a big cut. You have alternative | :06:03. | :06:06. | |
interpretations of the decisions the Chancellor is about to take. On | :06:07. | :06:12. | |
spending, current spending, the truth is, it is mucking about at the | :06:13. | :06:17. | |
edges, isn't it? So much of the budget is spent on things like | :06:18. | :06:22. | |
schools and hospitals. You will not change that around very much. Any | :06:23. | :06:28. | |
leeway is limited stop These decisions have to be taken by the | :06:29. | :06:34. | |
finance secretary. Will they protect the health service? Yes, they have | :06:35. | :06:37. | |
to go if they want to win support from the people of Scotland, just as | :06:38. | :06:41. | |
the Chancellor does in England. They have already announced they want to | :06:42. | :06:45. | |
double the provision of childcare. Expect to see that funded. Given the | :06:46. | :06:50. | |
current circumstances regarding concerns over terrorism, the | :06:51. | :06:55. | |
determination by the SNP to maintain police numbers, I expect the police | :06:56. | :06:59. | |
budget to be protected. Nicola Sturgeon has said she wants to | :07:00. | :07:04. | |
support schools. Back at sit down very narrowly. What is left the | :07:05. | :07:14. | |
broader local government budget, the budget for local authorities. Would | :07:15. | :07:17. | |
I spec to see that constrained? Yes, I would. I am sure your festive | :07:18. | :07:23. | |
braces have gone viral. Does that sound reasonable to you? On | :07:24. | :07:29. | |
spending, there is not much room for manoeuvre. The room for manoeuvre is | :07:30. | :07:33. | |
getting smaller by the year. If you say, I am going to protect health | :07:34. | :07:40. | |
and do nothing to produce -- reduce health and keep the education budget | :07:41. | :07:46. | |
protected, that is the vast majority of the budget. If you are also | :07:47. | :07:51. | |
saying you're protecting the police, the room for manoeuvre is suckered | :07:52. | :07:55. | |
into areas like council spending. If I were on the council right now, I | :07:56. | :08:00. | |
would be worried. There is not anywhere else you can see where the | :08:01. | :08:05. | |
axe will fall. Something else that will change over the next view | :08:06. | :08:10. | |
years, there will be at least some responsibility the Scottish | :08:11. | :08:14. | |
parliament will have for welfare. That is a whole area of spending | :08:15. | :08:19. | |
which is at least as big as departmental spending. It is | :08:20. | :08:22. | |
excluded from the Scottish budget at the moment. There is quite a limited | :08:23. | :08:33. | |
focus in today's statement, as you say, welfare is left to one side | :08:34. | :08:38. | |
now. There is this commitment already being made to the NHS, to | :08:39. | :08:45. | |
schools. So, you wonder where the knife will fall. John Swinney is | :08:46. | :08:50. | |
boxed in. After the Autumn Statement from the Chancellor, we know the | :08:51. | :08:56. | |
budget will fall. It will fall by just over 5% in terms of day-to-day | :08:57. | :09:05. | |
spending. This is in real terms? There is a squeeze. He has to do | :09:06. | :09:10. | |
something. His focus, if he is to make savings, will have to be not on | :09:11. | :09:15. | |
the NHS and schools, it will be other departments. He may be looking | :09:16. | :09:21. | |
at local authority spending. He may be lurking there. What can he do on | :09:22. | :09:27. | |
that front? He is likely to be committed I would have thought he | :09:28. | :09:32. | |
would be likely to commit to extending the freeze on council tax | :09:33. | :09:36. | |
for another year. He might, for example, say two councils, you can | :09:37. | :09:41. | |
only increase council tax if you spend it on things I want you to | :09:42. | :09:45. | |
spend it on. That is what George Osborne did. We saw council tax as a | :09:46. | :09:51. | |
result of rising in England by 2%. Who knows? John Swinney might do the | :09:52. | :09:57. | |
same. We will hear from you after the main event which is the draft | :09:58. | :10:03. | |
budget for 2016. Let's hear what he has to say. The Deputy First | :10:04. | :10:11. | |
Minister will take questions at the end of his statement. There will | :10:12. | :10:15. | |
therefore be no interventions or interruptions. I called on John | :10:16. | :10:21. | |
Swinney, Deputy First Minister. The Scottish Government's this is to | :10:22. | :10:24. | |
sustain deliverable economic growth and create the opportunity for all | :10:25. | :10:27. | |
of our citizens to flourish. We believe with a relentless focus on | :10:28. | :10:32. | |
tap inequality and boosting productivity, we can create | :10:33. | :10:36. | |
foundations for a stronger and inclusive economy. That team has to | :10:37. | :10:42. | |
be delivered with a significant constrained public spending | :10:43. | :10:45. | |
environment. As a consequence of UK Government austerity, the UK | :10:46. | :10:51. | |
Government will continue -- the Scottish budget will continue to | :10:52. | :10:57. | |
fall. If we want to improve our services, we must be prepared to | :10:58. | :11:01. | |
continually reform the way we deliver them. This budget is driven | :11:02. | :11:05. | |
by two themes were supporting inclusive growth and protecting and | :11:06. | :11:10. | |
reforming public services. We will delivering collusive growth by | :11:11. | :11:16. | |
focusing on investment, innovation, infrastructure and skills and by | :11:17. | :11:19. | |
maintaining a competitive business environment. We will protect and | :11:20. | :11:26. | |
reform public services by delivering on service integration at local | :11:27. | :11:36. | |
level, as a shift in prevention. What I am announcing today will lay | :11:37. | :11:39. | |
the foundations for the reforms which will defined the next | :11:40. | :11:47. | |
Parliament. We will deliver a step change in educational attainment and | :11:48. | :11:50. | |
provide greater focus in the innovation system, greater taxes and | :11:51. | :11:58. | |
use taxes in a way that supports our central purpose. The current | :11:59. | :12:02. | |
financial landscape presents us with a challenge and a choice. Scotland | :12:03. | :12:07. | |
can accept these Tory cuts or we can rise to the challenge and choose the | :12:08. | :12:11. | |
Scottish alternative to austerity. We choose to rise to the challenge, | :12:12. | :12:15. | |
we choose the Scottish alternative, we choose to put reform and growth | :12:16. | :12:20. | |
at the heart of this budget. APPLAUSE | :12:21. | :12:25. | |
Residing officer, we will build on the Scottish Government record of | :12:26. | :12:30. | |
delivering for the people in this country. Over the last period, | :12:31. | :12:37. | |
employment has risen and unemployment has fallen. We have | :12:38. | :12:41. | |
invested heavily in infrastructure, modernising services and boosting | :12:42. | :12:46. | |
construction. We have invested in Scotland's NHS, staff numbers and at | :12:47. | :12:53. | |
record levels. We have delivered curriculum for excellence and a | :12:54. | :12:56. | |
record number of higher and advanced higher passes were achieved in 2015. | :12:57. | :13:03. | |
We have delivered 600 hours of high-quality early learning and | :13:04. | :13:06. | |
childcare. Our country is safer with crime at a 41 year low. We are on | :13:07. | :13:13. | |
track to reach our 2020 interim climate change targets. We are | :13:14. | :13:15. | |
confident of taking that record to the people of this country. | :13:16. | :13:21. | |
APPLAUSE This year's ground for government | :13:22. | :13:26. | |
reinforced our commitment to build on the strong foundations. It is | :13:27. | :13:30. | |
made more difficult to achieve by the continued austerity agenda. By | :13:31. | :13:34. | |
2020, our budget will be 12.5% lower in real terms than when the | :13:35. | :13:37. | |
Conservatives came to power. That is the equivalent of ?1 in every ?8 we | :13:38. | :13:44. | |
spent being cut by Westminster by 2020. Even our capital budget will | :13:45. | :13:50. | |
bestow more -- will be more than half ?1 billion lower in 2021 than | :13:51. | :13:56. | |
it was in 2010/ 11. Whilst you recognise public finances need to be | :13:57. | :13:59. | |
sustainable, the scale of the cuts is unnecessary. We laid out clear | :14:00. | :14:07. | |
and detailed plans to reduce the deficit and debt while allowing | :14:08. | :14:11. | |
public investment in the economy. The Conservatives rejected that | :14:12. | :14:14. | |
plan. Their ideological obsession with austerity is born out of choice | :14:15. | :14:19. | |
rather than the 70. We will not make the same choice. We will not make | :14:20. | :14:23. | |
the poorest in society bear the burden. | :14:24. | :14:26. | |
APPLAUSE This vision and commitment to | :14:27. | :14:30. | |
fairness underpins our approach to taxation. We recognise that to | :14:31. | :14:34. | |
support the public services we all rely on, we must assure tax policies | :14:35. | :14:38. | |
are built on the principle that the tax burden should be proportionate | :14:39. | :14:43. | |
to the ability to pay. The budget marks the first time the Scottish | :14:44. | :14:46. | |
governor will propose a Scottish rate of income tax. From April 2016, | :14:47. | :14:51. | |
the UK Government will reduce the block grant by ?4.9 billion with a | :14:52. | :14:57. | |
partial devolution of income tax powers. At the same time, switch of | :14:58. | :15:03. | |
10p of income tax in Scotland. I am required now to set the rate in | :15:04. | :15:07. | |
Scotland. The current power allows for one single rate to be set here | :15:08. | :15:12. | |
in Scotland and applied equally to all three income tax bands, the | :15:13. | :15:21. | |
basic, higher and additional rates. This means any rate set above 10p | :15:22. | :15:23. | |
would increase the tax paid by all Scottish taxpayers. By its nature, | :15:24. | :15:27. | |
exercising this power would have a distal portion at effect on the | :15:28. | :15:33. | |
amount of tax paid by those on the lowest incomes. -- a | :15:34. | :15:36. | |
disproportionate effect. We would cut the tax bill paid by all | :15:37. | :15:40. | |
taxpayers. Those on the highest incomes would see the greatest | :15:41. | :15:44. | |
benefit. The simple fact is this. The tax power does not enable me to | :15:45. | :15:48. | |
target help to those on the lowest of incomes. I do, however, have the | :15:49. | :15:55. | |
power to insure this tax does not inflict an additional burden on | :15:56. | :16:00. | |
those on low incomes. I can therefore confirm there will be no | :16:01. | :16:03. | |
change in income tax rates next year. I propose that the Scottish | :16:04. | :16:08. | |
rate of income tax will be set at 10p in the pounds. The rate people | :16:09. | :16:13. | |
pay this year will be the same rate they will pay next year. I hope, | :16:14. | :16:20. | |
providing officer, that from 2017/18, this parliament will have | :16:21. | :16:23. | |
more flexibility in setting income tax rates. That will depend on | :16:24. | :16:27. | |
reaching agreement on a new fiscal framework and final passage of the | :16:28. | :16:32. | |
Scotland Billboard I confirm that subject to achieving these outcomes, | :16:33. | :16:35. | |
the Government will set out our longer-term intentions with regard | :16:36. | :16:38. | |
to income tax, head of the dissolution of Parliament at the end | :16:39. | :16:42. | |
of March. Residing officer, the setting of the Scottish rate marks | :16:43. | :16:47. | |
the latest tax power to be transferred to Scotland. Revenue | :16:48. | :16:52. | |
Scotland has been responsible for the collection of landfill tax. We | :16:53. | :16:59. | |
are on track to meet forecast revenues for the year. Scottish | :17:00. | :17:02. | |
landfill tax returns covering the first six months of this financial | :17:03. | :17:07. | |
year amounted to over ?74 million, against a forecast of ?117 million | :17:08. | :17:14. | |
for the year as a whole. Land and buildings transaction tax revenues | :17:15. | :17:19. | |
exceeded ?218 million for the first seven months of this financial year, | :17:20. | :17:23. | |
which also compares favourably with our forecast revenues of ?381 | :17:24. | :17:29. | |
million forged 2015/ 16. In setting the rates for 2016/17, we have | :17:30. | :17:34. | |
listened to the views of the property industry and other key | :17:35. | :17:45. | |
stakeholders. For residential, nonresidential and lease | :17:46. | :17:47. | |
transactions, I want to ensure the system remains progressive. This | :17:48. | :17:52. | |
means more than 10,000 additional purchases will be taken out of tax | :17:53. | :17:56. | |
compared to the UK wide stamp duty system it replaced last year. It | :17:57. | :18:01. | |
will result in a reduced tax charge for over 36,000 house purchases at | :18:02. | :18:09. | |
or below ?330,000. Overall, 93% of house buyers pay no tax or less tax | :18:10. | :18:14. | |
than understand duty. I am however conscious of the issue of second | :18:15. | :18:18. | |
homes. We need to ensure the opportunities for first-time buyers | :18:19. | :18:22. | |
to enter the market in Scotland are as strong as they possibly can be. | :18:23. | :18:27. | |
We need to make certain that tax changes elsewhere in the United | :18:28. | :18:30. | |
Kingdom to not make it harder for people to get onto the property | :18:31. | :18:36. | |
ladder. That is why I have announced my intention to implement a | :18:37. | :18:39. | |
supplement to land and buildings transaction tax for those purchasing | :18:40. | :18:43. | |
an additional home for ?40,000 or more. Such properties will be | :18:44. | :18:50. | |
subject to of 3% of the total purchase price, payable in addition | :18:51. | :18:54. | |
to the existing LB TT charge. We will surely bring forward | :18:55. | :18:57. | |
legislation to seek parliament approval to introduce a supplement | :18:58. | :19:02. | |
to ensure it takes effect from 1st of April 20 16. In keeping with the | :19:03. | :19:06. | |
Scottish approach to taxation, we will work closely with stakeholders | :19:07. | :19:10. | |
in developing the specific policy and legislative proposals | :19:11. | :19:13. | |
underpinning this. For Scottish landfill tax, I plan to ensure the | :19:14. | :19:21. | |
lower rate of tax to ?2 65 per tonne. The standard rate of tax to | :19:22. | :19:34. | |
?2.84 per tonne. I said I would set the credit rate for the Scottish | :19:35. | :19:38. | |
landfill communities fund 10% higher than the UK as a whole. The UK | :19:39. | :19:43. | |
Government announced plans to drop its equivalent rate to 4.2%. I | :19:44. | :19:47. | |
believe this is the wrong decision for our environment. Therefore, we | :19:48. | :19:53. | |
will maintain existing credit rate of 5.6%, ensuring landfill site | :19:54. | :19:58. | |
operators contribute more to community and environmental projects | :19:59. | :20:00. | |
and elsewhere in the United Kingdom. Early this week we received the | :20:01. | :20:05. | |
report of the cross-party commission on local taxation. We welcomed the | :20:06. | :20:10. | |
fact that four of the five parties in parliament took part and reached | :20:11. | :20:14. | |
agreement on a set of crucial principles that local tax should be | :20:15. | :20:18. | |
more progressive, broader and more empowering to local government. The | :20:19. | :20:21. | |
Government will now consider this report carefully and in the New | :20:22. | :20:24. | |
Year, we will set out plans to reform the council tax in a way that | :20:25. | :20:29. | |
will deliver sustainable finances and greater fairness for local | :20:30. | :20:33. | |
taxpayers. I can also announce today that I intend to enter into a | :20:34. | :20:36. | |
consultation with local governor about possible future assignation of | :20:37. | :20:42. | |
a proportion of income tax receipts, thereby giving local authorities an | :20:43. | :20:47. | |
incentive to boost economic growth in their areas. Residing officer, | :20:48. | :20:52. | |
taken together, we expect to raise ?671 million from the holy default | :20:53. | :20:59. | |
taxes in 2016/ 17. These forecasts have been assessed as reasonable. | :21:00. | :21:05. | |
The report will be published setting out its own assessment. I'm grateful | :21:06. | :21:09. | |
for the work and for the scrutiny that has been applied over the past | :21:10. | :21:15. | |
12 months. The commission's port challenges us to improve the | :21:16. | :21:20. | |
robustness of forecasting methodology is. For the first time | :21:21. | :21:25. | |
we are publishing five-year forecasts. This will aid | :21:26. | :21:28. | |
transparency around the medium-term assessment of the Scottish finances. | :21:29. | :21:34. | |
Eight strong and sustainable economy lies at the heart of a successful | :21:35. | :21:40. | |
Scotland. Economic strategy set out our approach to deliver the dual | :21:41. | :21:47. | |
uncomplimentary objectives of tackling the economy and boosting | :21:48. | :21:50. | |
competitiveness. This gives us the revenues needed to tackle | :21:51. | :21:57. | |
inequality. We also believe tackling economic inequality boosts growth. | :21:58. | :22:01. | |
It boosts prosperity. The draft budget provides resources to deliver | :22:02. | :22:07. | |
this by supporting innovation, investment, internationalisation and | :22:08. | :22:11. | |
inclusive growth. We will work in partnership with employers, | :22:12. | :22:14. | |
employees and trade unions through the Scottish business Pledge and | :22:15. | :22:18. | |
that fair work convention to deliver their work and inclusive growth. One | :22:19. | :22:20. | |
of our most significant investments in the future of the Scottish | :22:21. | :22:26. | |
economy is the delivery of 600 hours of free high-quality, early learning | :22:27. | :22:31. | |
and childcare for all three and four-year-olds and bone | :22:32. | :22:33. | |
22-year-olds. We are going further. We are committed to the ambitious | :22:34. | :22:41. | |
plan to double free nursery provision. The First Minister set | :22:42. | :22:45. | |
out in the programme for government the priority replays on educational | :22:46. | :22:50. | |
attainment for the yesterday, the OECD report examining curricular | :22:51. | :22:53. | |
mixers provided encouragement that Scotland is on the right track in | :22:54. | :22:58. | |
our schools. Just this morning, new figures were publishing record | :22:59. | :23:03. | |
number of school leavers in positive destinations, work, education or | :23:04. | :23:06. | |
training. We have a good education system that we are committed to | :23:07. | :23:10. | |
making it better. We must raise attainment for all and close the gap | :23:11. | :23:21. | |
that has existed for decades between children in our most and least | :23:22. | :23:23. | |
deprived areas. The budget makes provision for that commitment, with | :23:24. | :23:25. | |
?33 million investment in attainment programmes for 2016/17 which will | :23:26. | :23:33. | |
reach the Scottish attainment challenge. It reaffirms our | :23:34. | :23:36. | |
commitment to improving the wider education system. We will continue | :23:37. | :23:39. | |
to invest in high-quality schools and community health facilities | :23:40. | :23:46. | |
throughout new Hub programme. In this difficult financial context, I | :23:47. | :23:52. | |
have protected college funding, delivering the budget stability the | :23:53. | :23:55. | |
further education system needs. We will deliver on our promise to | :23:56. | :23:59. | |
expand the education maintenance allowance and modern apprenticeship | :24:00. | :24:04. | |
programmes to help more young people fulfil their potential and into | :24:05. | :24:07. | |
positive rewarding employment. The Scottish Government has placed the | :24:08. | :24:11. | |
principle of higher education based on utility to learn not the ability | :24:12. | :24:17. | |
to pay at the heart of what believe. I can confirm we will continue to | :24:18. | :24:21. | |
fund our commitment to free tuition. We have backed up our commitment to | :24:22. | :24:26. | |
keeping universities world class by investing over ?4 billion in the | :24:27. | :24:29. | |
higher education sector over the last four years. Now we will renew | :24:30. | :24:37. | |
this commitment, investing a further ?1 billion in 2016/17 to support the | :24:38. | :24:42. | |
continued success of our world-class universities, delivering high | :24:43. | :24:44. | |
quality learning and research excellence. We want to go further. | :24:45. | :24:49. | |
We want to see a new relationship with higher education, a long-term | :24:50. | :24:54. | |
partnership underpinned by ongoing significant investment to support | :24:55. | :24:56. | |
the delivery of key shared priorities. That is our ambition and | :24:57. | :25:01. | |
we welcome the constructive approach universities have taken as we | :25:02. | :25:04. | |
discuss with them how to make this a reality. Critical to that long-term | :25:05. | :25:10. | |
approaches our investment in higher education research. This budget | :25:11. | :25:14. | |
settlement will enable the core research budget for higher education | :25:15. | :25:17. | |
to be protected as a key investment for the future of Scotland. The | :25:18. | :25:23. | |
Government is always prioritising investment in infrastructure to | :25:24. | :25:27. | |
stimulate the economy. We are on track to build 30,000 affordable | :25:28. | :25:30. | |
homes over the course of this Parliament. We recognise the | :25:31. | :25:33. | |
importance of extending our commitment on housing to create the | :25:34. | :25:37. | |
quality of accommodation people require to provide continued | :25:38. | :25:42. | |
stimulus to the construction industry. We are committed to | :25:43. | :25:46. | |
building 50,000 new homes jarring the next Parliament. I am delighted | :25:47. | :25:50. | |
to announce that as the first step towards this will be increasing the | :25:51. | :25:55. | |
budget for affordable housing next year by ?90 million, enabling us to | :25:56. | :26:00. | |
invest around ?690 million in housing supply. On fuel poverty, we | :26:01. | :26:09. | |
will continue to invest to help people have affordable homes, | :26:10. | :26:12. | |
building on achievements to date through a home energy efficiency | :26:13. | :26:18. | |
plan in Scotland. In total, over ?100 million to tackle fuel poverty | :26:19. | :26:22. | |
and climate change and help improve the condition of Scotland's home. | :26:23. | :26:26. | |
The development of energy efficiency is a national infrastructure | :26:27. | :26:31. | |
priority will create change in improving energy efficiency and the | :26:32. | :26:37. | |
heating of homes, reducing fuel bills and greenhouse gas emissions. | :26:38. | :26:43. | |
Our investment in collectivity is essential in our vision of | :26:44. | :26:47. | |
harnessing the opportunities for growth and improving public services | :26:48. | :26:51. | |
across all aspects of Scottish life. We will invest ?130 million in | :26:52. | :26:57. | |
Scotland's Digital structure to help meet our 2017 target that 95% of | :26:58. | :27:03. | |
premises in Scotland will have access to next-generation broadband, | :27:04. | :27:06. | |
alongside our investment through the emergency services project, which | :27:07. | :27:10. | |
will enhance mobile coverage into the bargain. We will invest almost | :27:11. | :27:16. | |
?1 billion in transport projects, on rail this will include the | :27:17. | :27:24. | |
completion of the electrification of the line. It includes the | :27:25. | :27:29. | |
construction of the first section of another line. I can announce that | :27:30. | :27:34. | |
new projects are also able to succeed. I have authorising the | :27:35. | :27:39. | |
commencement of work in 2016 /17 to the bypass in Ayrshire and on the | :27:40. | :27:45. | |
Aberdeen Western peripheral Route, I confirm work will begin in 2016 to | :27:46. | :27:51. | |
improvements to the roundabout in the city of Aberdeen. -- at a | :27:52. | :28:00. | |
roundabout. The fourth replacement crossing is on track to be | :28:01. | :28:05. | |
completed. Alongside these major projects, we will invest in trunk | :28:06. | :28:11. | |
roads and motorways. Investment will also be made to support ferry | :28:12. | :28:15. | |
services with two new 100 metres vessels. We will also continue to | :28:16. | :28:24. | |
support air travel through the air this can scheme which offers a 50% | :28:25. | :28:30. | |
discount on core airfares. We are committed to a significant programme | :28:31. | :28:36. | |
of investment in the sewage infrastructure for the 2015/21 | :28:37. | :28:42. | |
period, worth ?3.5 billion, and including 250 million to upgrade | :28:43. | :28:45. | |
Glasgow's waste water infrastructure and improve the environment of the | :28:46. | :28:49. | |
River Clyde and tackle flooding. On flooding specifically, there have | :28:50. | :28:52. | |
been a number of incidents issue that have caused enormous distress | :28:53. | :28:56. | |
to members of the public. In this financial year, we will provide ?4 | :28:57. | :29:01. | |
million to the local authority areas affected most by the flooding. It | :29:02. | :29:10. | |
will help with recovery and help households and businesses access the | :29:11. | :29:14. | |
support they require. Scotland's businesses are key to creating jobs | :29:15. | :29:18. | |
and boosting prosperity. This draft budget maintains the bonus scheme | :29:19. | :29:25. | |
where homes across Scotland will benefit from reduced or zero | :29:26. | :29:31. | |
business rates. This matches the English poundage rate. Mindful of | :29:32. | :29:35. | |
the views and representations of many in the business community that | :29:36. | :29:38. | |
the future business rates in Scotland, I share with Scottish | :29:39. | :29:42. | |
business recognition that our system of business rates must minimise | :29:43. | :29:45. | |
barriers to investment, be responsive to economic conditions | :29:46. | :29:49. | |
and support long-term economic growth and investment. I can | :29:50. | :29:52. | |
therefore announce we will relaunch -- we will launch a review of the | :29:53. | :29:57. | |
rate system in Scotland. Over the last two years the levels of | :29:58. | :30:00. | |
inflation coupled with below inflation increases in poundage have | :30:01. | :30:05. | |
generated lower income than anticipated. Those income | :30:06. | :30:08. | |
projections have not kept pace with benefits to business from the small | :30:09. | :30:12. | |
business bonus scheme. That is why our proposing today to increase the | :30:13. | :30:16. | |
large business supplement to nondomestic rates and make changes | :30:17. | :30:20. | |
to other released. Taken together, this will raise around ?130 million | :30:21. | :30:23. | |
to fund invested in the economy. The budget also in this is the | :30:24. | :30:40. | |
importance of third sector. The busy economy is now in a sustained PDA of | :30:41. | :30:48. | |
course, but the future health relies on improving productivity, from | :30:49. | :30:53. | |
innovation. We are committing funding, about ?345 million, to | :30:54. | :31:00. | |
support research and innovation, from the funding council. They have | :31:01. | :31:07. | |
committed ?124 million, to the network of innovation centres, but | :31:08. | :31:11. | |
we believe that the approach needs greater focus, to achieve economic | :31:12. | :31:17. | |
impact. The Scottish Government is going to work with partners, | :31:18. | :31:23. | |
including agencies, universities, to align the approach to innovation, | :31:24. | :31:26. | |
get funding, and simplify the landscape. This ambitious reform, | :31:27. | :31:34. | |
the next, allows us to create an environment that drives new | :31:35. | :31:39. | |
products, services, through improved collaboration. One of the two key | :31:40. | :31:48. | |
elements of the budget. The other element, the reform of the public | :31:49. | :31:54. | |
services. Public services play a vital part in shaping the economy | :31:55. | :31:58. | |
and society, making a major contribution to the well-being of | :31:59. | :32:03. | |
communities, promoting prosperity and enable people to participate in | :32:04. | :32:08. | |
society. Having removed the ring fencing of local authority budgets, | :32:09. | :32:12. | |
we have encouraged a greater degree of working at local level, with | :32:13. | :32:16. | |
public bodies, meeting the needs of individual citizens. The Christie | :32:17. | :32:24. | |
commission reinforce this, the integration of public services and a | :32:25. | :32:30. | |
shift towards preventative spending. Since then we have reformed the | :32:31. | :32:34. | |
delivery of college education, and the police and Fire Services as a | :32:35. | :32:39. | |
result. This budget underscores the commitment, to continue reforming. | :32:40. | :32:46. | |
We will take steps to extend Digital publications, increase the use of | :32:47. | :32:51. | |
the services, make more effective use of public assets, and reduce | :32:52. | :32:58. | |
overlap between public services. Presiding Officer, the police | :32:59. | :33:01. | |
service qui a vital role protecting communities. In the last few years, | :33:02. | :33:06. | |
they have undergone difficult but necessary reform. A distinctive | :33:07. | :33:10. | |
build on that. We will provide you the protection, to the front line | :33:11. | :33:17. | |
resource in budget, and if we're going to be re-elected, for every | :33:18. | :33:22. | |
year of the next Parliament, a boost of ?100 billion. When this | :33:23. | :33:27. | |
parliament passed legislation, it agreed that the current financial | :33:28. | :33:31. | |
year would effectively marked the end of the time-limited police | :33:32. | :33:34. | |
reform budget. But given the challenges facing the police, | :33:35. | :33:40. | |
arising from the security situation, we are announcing more support | :33:41. | :33:44. | |
today. Instead of removing the reform budget as Parliament | :33:45. | :33:48. | |
intended, in order to consolidate reforms and support the police, I am | :33:49. | :33:54. | |
committing another ?55 million next year, to this important task of | :33:55. | :34:02. | |
Divinity safety. -- community. In all of these reforms, the objective | :34:03. | :34:11. | |
is to provide cohesion public services, the government has | :34:12. | :34:19. | |
invested significant importance. From 2012 to 2016, local funding has | :34:20. | :34:24. | |
been maintained on a like-for-like basis, with extra resources | :34:25. | :34:26. | |
allocated to do with responsibilities. Compare this to | :34:27. | :34:38. | |
England. Facing a cut in funding, of 27.4%, and more reductions in this | :34:39. | :34:43. | |
and the next financial year. Local government has been a founding | :34:44. | :34:46. | |
partner, in the reform of health and Social Care Act services. The | :34:47. | :34:50. | |
government is making a radical reform, to the way that social care | :34:51. | :34:55. | |
is paid for. It intends to allocate 250 million, from the health | :34:56. | :35:01. | |
service, and the social there, in 2016 and 2017. This is going to | :35:02. | :35:12. | |
build the capacity of community services, and have the largest | :35:13. | :35:16. | |
impact, since the creation of the National Health Service in Scotland | :35:17. | :35:20. | |
in the it will mean fewer people have to go to hospital, but when it | :35:21. | :35:24. | |
is necessary people will get home quickly. And it is addresses the | :35:25. | :35:34. | |
underlying thought, the boundary between NHS and local government | :35:35. | :35:39. | |
spending. It has stopped so many attempts, to improve cure, but it | :35:40. | :35:51. | |
ceases to exist. A strong but challenging financial settlement for | :35:52. | :35:54. | |
local government, we have to recognise that it will support the | :35:55. | :36:03. | |
delivery, but essential service, we won't ditch with local government, | :36:04. | :36:07. | |
in terms of the financial settlement, in advance of stage | :36:08. | :36:13. | |
three can settlement. The key to those discussions, the focus on | :36:14. | :36:17. | |
reform. Local government an essential partners, leading to the | :36:18. | :36:20. | |
creation of sustainable public services. | :36:21. | :36:31. | |
This government is absolutely committed, I am going to be | :36:32. | :36:43. | |
allocating more than ?500 million, resulting in total planned spending, | :36:44. | :36:47. | |
of nearly 13 billion, next year, an increase of 6.5% on numbers for | :36:48. | :36:59. | |
2015, 20 16. But let me make this clear. The nature of the challenges | :37:00. | :37:04. | |
facing us, the National Health Service, mean that additional money | :37:05. | :37:09. | |
will not equip that properly, for the future. To be blunt, if all that | :37:10. | :37:15. | |
we do is find the health service, to do more of the scene, it will not | :37:16. | :37:21. | |
cope with the pressure. To protect the National Health Service, we need | :37:22. | :37:24. | |
to do more than death extra money, we need to deliver fundamental | :37:25. | :37:28. | |
reform and change the way that it delivers care. That despite this | :37:29. | :37:35. | |
additional investment is just as important, than the skill of the | :37:36. | :37:41. | |
resources involved. In addition to the fundamental realignment, this | :37:42. | :37:46. | |
investment will support more reforms, shaping the National Health | :37:47. | :37:48. | |
Service and equipping for the future. We intend to transform | :37:49. | :37:59. | |
primary care, an extra ?45 million, multidisciplinary teams working | :38:00. | :38:01. | |
together, to meet the needs of communities. Secondly, an additional | :38:02. | :38:08. | |
elective capacity, to meet the needs of an older population. We will | :38:09. | :38:12. | |
invest ?200 million over the next five years, six new treatment | :38:13. | :38:25. | |
centres, and their ability to carry out these operations. Investment for | :38:26. | :38:28. | |
reform Soviet protect the National Health Service, for the long term, | :38:29. | :38:34. | |
and this budget shows that the precious National Health Service is | :38:35. | :38:36. | |
going to be safe in the hands of this government, now and in the | :38:37. | :38:48. | |
future. We are committed to being term increases, in the National | :38:49. | :38:51. | |
Health Service budget, not just 2016 and 2017, but the generation of the | :38:52. | :38:57. | |
next Parliament if we are going to be re-elected. The Scottish | :38:58. | :39:06. | |
Parliament has been forced to do this, it is not practical to undergo | :39:07. | :39:12. | |
the full spending review, Scottish ministers continue to discuss the | :39:13. | :39:18. | |
framework, as part of the Scotland Bill. That will have an impact on | :39:19. | :39:25. | |
the resources available. It is possible to set out the vision, we | :39:26. | :39:32. | |
will continue to reject austerity, continue to prioritise investment in | :39:33. | :39:35. | |
public services that people value the most. And we will undertake | :39:36. | :39:40. | |
ambitious reforms, to ensure this remains sustainable. We will invest | :39:41. | :39:47. | |
in schools, to ensure children have the opportunity to the full | :39:48. | :39:52. | |
potential, support the attainment challenge, and implement the | :39:53. | :39:56. | |
recommendations of the commission, developing the workforce. We will | :39:57. | :40:01. | |
also create a stronger economy, investing in innovation, and | :40:02. | :40:05. | |
structure. We will support job creation, and employers, living | :40:06. | :40:12. | |
wage, increasing productivity. We will tackle inequalities, making | :40:13. | :40:22. | |
Scotland fairer, but what we will not do, is full in the UK | :40:23. | :40:27. | |
Government's footsteps, targeting the most vulnerable people in | :40:28. | :40:32. | |
society. This brings me to the final part of this budget statement. The | :40:33. | :40:37. | |
welfare reform agenda of the UK Government is presenting | :40:38. | :40:41. | |
difficulties for families in Scotland, impacting on the most | :40:42. | :40:46. | |
wrong. In contrast, the Scottish Government continues to do for the | :40:47. | :40:50. | |
time, to protect and comes. I can't inform the day, we maintain the | :40:51. | :40:59. | |
commitment -- can confirm today, the allocation of 38 million, up to 340 | :41:00. | :41:08. | |
million for the council tax reduction, and more for the Beijing | :41:09. | :41:15. | |
tax. We will continue to help family budgets, free prescriptions, eye | :41:16. | :41:26. | |
checks, travel for old, disabled and young people. Free school meals for | :41:27. | :41:29. | |
children. We told its support for those on low incomes, requiring that | :41:30. | :41:39. | |
employers or pay the -- all pay the living wage. Band maintaining the no | :41:40. | :41:45. | |
compulsory redundancy policy. Personal and no sincere, -- nursing | :41:46. | :41:58. | |
care, will also be maintained. I turn to the council tax. This week's | :41:59. | :42:04. | |
report said that the card and it's a tax system is unfair. It also said | :42:05. | :42:11. | |
many people pay too much. Correct. This government is committed to | :42:12. | :42:17. | |
protecting household budgets, and I have already frozen income tax | :42:18. | :42:20. | |
rates. We proposed to freeze the case of tax, -- council tax, we will | :42:21. | :42:30. | |
keep that promise, and do that next year. This means council tax will be | :42:31. | :42:35. | |
frozen for nine consecutive years. Saving the average household, ?1500, | :42:36. | :42:46. | |
on a band D bill. Dual freeze on income and council tax. Helping | :42:47. | :42:56. | |
families, week in, week out, across Scotland. The government is looking | :42:57. | :43:01. | |
to promote the economy, the lover opportunities, and protect public | :43:02. | :43:06. | |
services for the future. It is a budget for reform, a budget for | :43:07. | :43:10. | |
Scotland, and I commend this to Parliament. Thank you. Order. Deputy | :43:11. | :43:33. | |
First Minister will take questions. After that, the next item of | :43:34. | :43:45. | |
business. Thank you. Let me thank the finance secretary. So much, | :43:46. | :43:54. | |
hidden. We're not just talking about the statement. My disappointment, in | :43:55. | :44:02. | |
my memory, first time in this Parliament, it has been redacted. | :44:03. | :44:12. | |
Genuinely disappointing. This is a historic budget. Probably the most | :44:13. | :44:16. | |
significant since the Scottish Parliament opened. Major attacks and | :44:17. | :44:30. | |
will powers, they could have outline plans, to Interstate 80, and close | :44:31. | :44:33. | |
the gap between the richest and the police. He says he has delivered on | :44:34. | :44:42. | |
that. -- poorest. But he has not rejected austerity, simply managing | :44:43. | :44:47. | |
that. Scottish Labour, calling for the genuine budget, but instead, | :44:48. | :44:56. | |
what we have from the SNP... The budget for an election. Short term. | :44:57. | :45:04. | |
All the cuts hidden. But we know they are still to come. The finance | :45:05. | :45:12. | |
minister should have laid out the plans, across the budget, for at | :45:13. | :45:19. | |
least three years. Scottish spending review. He selected the good news, | :45:20. | :45:27. | |
hid the bad. Austerity, hidden, not avoided. People deserve to know the | :45:28. | :45:35. | |
truth. The SNP credibility on the economy has been questioned by | :45:36. | :45:41. | |
experts. Growth is down. We are behind the rest of the United | :45:42. | :45:48. | |
Kingdom. Oil prices low. And employment statistics, double | :45:49. | :45:59. | |
prerecession levels. -- below. After nine years, the finance secretary | :46:00. | :46:02. | |
has only just discovered tea can do something about productivity. A | :46:03. | :46:12. | |
freeze is not progressive. It does not help the poorest people. The | :46:13. | :46:19. | |
Scottish Government have given us recycled announcements. They have | :46:20. | :46:23. | |
told us what budgets they are increasing, but not what is being | :46:24. | :46:27. | |
cut. The finance secretary has said he is protecting schools, he said he | :46:28. | :46:36. | |
is increasing health, social care, but slashing the budgets of | :46:37. | :46:47. | |
councils. The experts have told us that they are more significant, | :46:48. | :46:58. | |
these are the hidden cuts, that the Scottish National Party are not | :46:59. | :47:01. | |
telling us about. The most significant budget, from a party, | :47:02. | :47:06. | |
telling us they were going to stand up against Conservative austerity, | :47:07. | :47:13. | |
deliver a long-term plan, no. Doesn't deliver the anti-austerity | :47:14. | :47:24. | |
alternative? After nine years, a majority in parliament, more power | :47:25. | :47:29. | |
than before, insubstantial parts of this budget, John Swinney is simply | :47:30. | :47:40. | |
copy and George Osborne. -- copying. That is not anti-austerity. Scotland | :47:41. | :47:50. | |
deserves better than that. On the first point... I think this | :47:51. | :47:56. | |
highlights the atrocious lack of communication within the Labour | :47:57. | :48:06. | |
Party. Not the first time a financial statement has been | :48:07. | :48:09. | |
redacted. It was done last year, so I was able to announce the | :48:10. | :48:14. | |
Parliament, the tax rates being put forward. I cannot remember who the | :48:15. | :48:19. | |
Labour finance spokesperson was, I have gone through so many over the | :48:20. | :48:25. | |
years. If Jackie had talked to them... They would have found out | :48:26. | :48:36. | |
that was redacted last year. That as a basic illustration, of how lacking | :48:37. | :48:46. | |
in detail Jackie Baillie is. In those several minutes, the | :48:47. | :48:50. | |
contribution to Parliament, not a single alternative proposition from | :48:51. | :49:01. | |
Jackie Baillie. This is a character trait of Jackie Baillie. All that | :49:02. | :49:07. | |
the Labour Party deliver, abuse, of the people, they do not produce | :49:08. | :49:11. | |
alternatives of what they would do differently. This is now the chance | :49:12. | :49:21. | |
for Jackie Baillie to redeem also. The opportunity, through the | :49:22. | :49:27. | |
process, now that I have published hundreds of pages of financial | :49:28. | :49:32. | |
information. The choices that we have made. Jackie Baillie can look | :49:33. | :49:35. | |
at this, decide what she would do differently. What taxes she would | :49:36. | :49:45. | |
put up. All the regions, changes. What I have put forward, the budget | :49:46. | :49:49. | |
that protects the incomes of the lost income households in Scotland. | :49:50. | :49:53. | |
That is the most effective way that we can use the powers available to | :49:54. | :49:59. | |
us, to help the people we are elected to serve. Mr Fraser. This is | :50:00. | :50:15. | |
a historic budget. For the first time, since devolution, not just | :50:16. | :50:21. | |
concerned about the devolution of resources, he has the powers to | :50:22. | :50:25. | |
visit the budget, amending the rate of income tax. The finance secretary | :50:26. | :50:32. | |
has chosen to sit that at the same rate elsewhere in the United | :50:33. | :50:36. | |
Kingdom. We applaud that decision. We do not believe that hard-pressed | :50:37. | :50:40. | |
families in Scotland should pay more tax than those elsewhere. But it | :50:41. | :50:47. | |
cannot be forgotten the finance secretary had a choice. He chose not | :50:48. | :50:53. | |
to increase the resources, by waving additional taxes. We need to | :50:54. | :50:59. | |
remember, the total budget for the coming year, in cash terms, 400 | :51:00. | :51:10. | |
million higher. In the returns, smoggy trees, but that is | :51:11. | :51:14. | |
substantially less than the most recent underspend. In that context, | :51:15. | :51:25. | |
any talk of cuts Wilshere data was. But it is still the position, it is | :51:26. | :51:29. | |
too more, the solution is in the run hands. He could have chosen to raise | :51:30. | :51:37. | |
the rate of income tax. He has portrayed himself as the prisoner of | :51:38. | :51:42. | |
Westminster austerity. But he has been given the key to the door of | :51:43. | :51:51. | |
his cell. I trust we are not going to hear any more about austerity, | :51:52. | :51:56. | |
when they have chosen not to increase the size of the budget. | :51:57. | :52:02. | |
They had the chance, flunked it. The Scottish Conservatives will detail | :52:03. | :52:08. | |
and scrutinise the budget, suggest constructive changes. For the | :52:09. | :52:12. | |
moment, we welcome the extra money for housing, and nondomestic rates. | :52:13. | :52:20. | |
Straight from the Conservative manifesto. Conservatives lead... SNP | :52:21. | :52:32. | |
follow. I am disappointed the finance secretary has not brought | :52:33. | :52:38. | |
forward great changes, to wind and action, it is already having a | :52:39. | :52:42. | |
detrimental impact on the market. -- land. Looking at the significant | :52:43. | :52:57. | |
shortfall, but I do welcome him following George Osborne's lead in | :52:58. | :53:03. | |
increasing by 3%, the supplement for second only homes. Conservatives | :53:04. | :53:13. | |
lead. SNP follow. I know it is early days, the scrutiny of the budget, | :53:14. | :53:21. | |
but the fundamental problem in the argument that Mr Fraser deployed. | :53:22. | :53:25. | |
That they had not taken states to increase the amount of money | :53:26. | :53:33. | |
available. I have. The business rates, ?130 million. That was not | :53:34. | :53:40. | |
sneaked in. I have expressed that the Parliament. ?130 million. All of | :53:41. | :53:51. | |
that pre amble, of total inflated nonsense from Mr Fraser. Punctured | :53:52. | :53:59. | |
by that fact! I have used the opportunity to increase the money | :54:00. | :54:04. | |
available. We can ignore that part of his rant. We will not ignore the | :54:05. | :54:16. | |
last part of his rant, we'll dismantle! Mr Fraser may have wanted | :54:17. | :54:24. | |
me to use the Scottish rate of income tax, to increase the level of | :54:25. | :54:37. | |
tax that could have been lifted, -- levied. I can see why that would | :54:38. | :54:45. | |
have suited Mr Fraser. It would have led to an increase of 2.6%. That was | :54:46. | :54:53. | |
John Swinney. Talking about the budget. | :54:54. | :54:59. | |
Hamish Macdonell is still with me and we're also | :55:00. | :55:01. | |
joined by our Business and Economy Editor, Douglas Fraser. | :55:02. | :55:03. | |
Let's take a look at some of the key points from | :55:04. | :55:06. | |
No change with the income tax? Going into the election, he did not want | :55:07. | :55:14. | |
to increase that. People will say the same -- see the same bills. 10p | :55:15. | :55:31. | |
going to the Chancellor. 10p going to the Scottish tragedy. He could | :55:32. | :55:34. | |
have cut that, but that would have gone against anti-austerity. More | :55:35. | :55:45. | |
tax on second homes? He has forward what George Osborne has done. I | :55:46. | :55:47. | |
think that would include landlords as well. 3% extra on top. Stamp | :55:48. | :56:00. | |
duty. Fully evolved. One of the reasons George Osborne was doing | :56:01. | :56:09. | |
that, a problem of overheating the south east of England, trying to | :56:10. | :56:16. | |
cool it down. That was part of the agenda for Westminster, but he wants | :56:17. | :56:26. | |
to level the playing field. We were talking about how the Chancellor | :56:27. | :56:36. | |
would be brave to put taxes up. Murdo Fraser having a stab. He said | :56:37. | :56:39. | |
we were supposed to vote for independence, countering | :56:40. | :56:46. | |
conservative austerity. They had the chance to put income tax. Where is | :56:47. | :56:57. | |
anti-austerity? He said that he had to get some money from somewhere. | :56:58. | :57:00. | |
Some of the receipts have not been the size that they would have liked. | :57:01. | :57:11. | |
He said that he did not seek it through, -- sneak, but he needed the | :57:12. | :57:20. | |
money from somewhere, it would not be suicide, but it would be | :57:21. | :57:24. | |
difficult to tell the public. I will find it from big business. Spending. | :57:25. | :57:33. | |
Some of that. Police... Echoing George is on. -- George Osborne. | :57:34. | :57:46. | |
Particularly, in Scotland, from several forces down to one. The | :57:47. | :57:52. | |
response on that. On health, they have stuck to what they said. Except | :57:53. | :57:59. | |
for one significant element. 250 million out of the hill service, to | :58:00. | :58:03. | |
give that to councils. And also slashing Tencel budgets. -- council. | :58:04. | :58:12. | |
Social justice, down about 600 million. But getting more | :58:13. | :58:17. | |
responsibility. Tandy force the council 's to spend that? -- can | :58:18. | :58:28. | |
they force. Or could the councils just take that? Legal requirements, | :58:29. | :58:38. | |
to deliver on expectations that central government has for social | :58:39. | :58:45. | |
care. These are added responsibilities. 250 million. | :58:46. | :58:51. | |
Significant message to his own party, backbenchers, that more money | :58:52. | :58:54. | |
is not always the answer. He said that reform would be more important | :58:55. | :59:01. | |
than finance. This is an issue, that not just the Scottish National | :59:02. | :59:08. | |
Party, but also the previous coalition were criticised for. Just | :59:09. | :59:13. | |
wanting to spend more money? He talked about reform, in general, I | :59:14. | :59:21. | |
was not getting specifics. Merging health and social care. But he | :59:22. | :59:25. | |
talked about reform as though that would see the money. | :59:26. | :59:27. | |
That's all we have time for this afternoon. | :59:28. | :59:29. | |
You can see further analysis of the Budget statement | :59:30. | :59:32. | |
on Reporting Scotland at 6:30pm tonight on BBC One Scotland. | :59:33. | :59:34. | |
First Minister's Questions is tomorrow at noon here on BBC Two. | :59:35. | :59:37. | |
'and each object has a story to tell.' | :59:38. | :00:06. | |
'for their favourite outdoor events around the country, | :00:07. | :00:14. | |
'I'll be pitching up with my silver trailer | :00:15. | :00:17. | |
'to meet the locals with their precious antiques and collectables.' | :00:18. | :00:20. | |
I'm feeling inspired myself. Thank you very much. | :00:21. | :00:24. |