The Scottish National Party (SNP) secured the support of the Greens to
pass its government’s budget just hours before the first key vote on the
spending plans. The deal was reached on Thursday afternoon after days of intense
negotiations with the SNP minority government, which centred around
Green demands for an immediate boost to local government funding and,
longer term, an alternative system to the council tax. The agreement includes significant concessions, including an
additional £90m core settlement for local government; the chance for
local authorities to raise extra funds via a tourist tax and workplace
parking charges; and an increase in the cap on council tax rises to
4.79%.
The Scottish Greens co-convenor, Patrick Harvie, welcomed the deal but nevertheless said the Scottish budget process is “not what it should be”, criticising both the Scottish government for its “down to the wire” tactics and other parties for their refusal to engage with the process at all. “The outcome for Scotland would be better if all political parties took their responsibilities more seriously,” he told MSPs.
Presenting his draft budget in December, Derek Mackay told the Scottish parliament it strengthened the SNP’s progressive taxation strategy. He said he would freeze the level at which higher-rate tax will be paid, which is £43,431, from next April, rather than matching the Treasury’s plans to start the higher rate with earnings over £50,000. That would allow him to cut taxes for the lowest earners, by increasing the threshold for the starter and basic rates of tax of 19% and 20% by inflation, up to £12,500 and £14,549 respectively. As a result, 55% of Scottish taxpayers would pay less than their counterparts in the rest of the UK, he told MSPs.
The package also includes cross-party talks on a replacement for council tax with a view to publishing legislation in the next parliament; a move to three-year local authority budgets; and doubling the charge on single-use carrier bags to 10p as well as agreeing to charge for disposable drinks cups, with the possibility that some of the extra revenue raised will go directly to local government.
The Scottish Greens co-convenor, Patrick Harvie, welcomed the deal but nevertheless said the Scottish budget process is “not what it should be”, criticising both the Scottish government for its “down to the wire” tactics and other parties for their refusal to engage with the process at all. “The outcome for Scotland would be better if all political parties took their responsibilities more seriously,” he told MSPs.
Presenting his draft budget in December, Derek Mackay told the Scottish parliament it strengthened the SNP’s progressive taxation strategy. He said he would freeze the level at which higher-rate tax will be paid, which is £43,431, from next April, rather than matching the Treasury’s plans to start the higher rate with earnings over £50,000. That would allow him to cut taxes for the lowest earners, by increasing the threshold for the starter and basic rates of tax of 19% and 20% by inflation, up to £12,500 and £14,549 respectively. As a result, 55% of Scottish taxpayers would pay less than their counterparts in the rest of the UK, he told MSPs.
The package also includes cross-party talks on a replacement for council tax with a view to publishing legislation in the next parliament; a move to three-year local authority budgets; and doubling the charge on single-use carrier bags to 10p as well as agreeing to charge for disposable drinks cups, with the possibility that some of the extra revenue raised will go directly to local government.
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