Stage 3 debate, Budget Bill 2017-18
Scottish Parliament, 23 February
Presiding Officer, I am delighted to lead this debate on the
Budget Bill for 2017-18.
Firstly, I’d like to confirm that I responded formally to
the Finance Committee report on the budget on Tuesday. I would like to commend
the Finance Committee and all the Subject Committees for their constructive
approach.
Our process in future will continue to adapt to our new
powers, and I look forward to seeing the output of the Budget Review Group and
to working together with all members of Parliament to ensure our future
processes are fit for our new powers and responsibilities.
Presiding Officer, this is a Bill of huge importance to
Scotland. The decisions we make today underpin the work of our public services,
our commitment to sustainable economic growth and the support we provide to
communities and individuals across the country.
The Bill before us today seeks Parliament’s approval for an
additional £900 million of expenditure focussed on the positive vision for
Scotland established in our Programme for Government.
That vision is focussed on;
- stabilising
and growing our economy;
- empowering
our communities;
- protecting
our environment; and
- promoting
equality and improving our public services.
The budget we are voting on today includes areas of
compromise – where as a minority government – we have worked hard to secure
support for the bill in order to deliver on our commitments and protect
Scotland’s hard-won social contract. I once again thank those who engaged
constructively in those discussions.
As a result I believe this Bill offers a balanced approach
that is right for our economy, for jobs and our public services, as well as
providing stability and continuity for the public and taxpayers at a time of
economic uncertainty.
As we debated on Tuesday, the Scotland Act powers mean there
is a much more direct link between Scotland’s economic performance and the
revenues available to fund our public spending.
The decisions we make must have economic growth at their
heart. In the Draft Budget I confirmed our £500 million Scottish Growth Scheme,
funding for City Deals and interventions such as funding for the new Innovation
and Investment Hubs in Dublin, London, Brussels and Berlin.
Our support is also confirmed for the Aberdeen, Glasgow and
Highland deals will total over £760 million in the years to come and we are
continuing discussions on Lothian, Tay Cities as well as the Ayrshire growth
deal.
We are using all the economic levers at our disposal and I
am pleased to confirm further progress today. I have this week confirmed
the Scottish Government’s formal approval of Fife Council’s tax incremental
financing scheme, which will enhance the Fife Energy Park and is projected to
unlock more than £11 million for the Scottish economy and create more than 220
jobs.
As well as taking forward the Fife scheme, I look forward to
receiving applications next week for the two fresh TIF opportunities announced
in the Budget.
Overall, in 2017-18 we will see investment of around £4
billion in key infrastructure projects up and down the country.
Projects across our roads and transport programmes, such as:
- the
M8/M73/M74 improvements
- the
Queensferry Crossing, which will complete this year,
- the
A9,
- the
AWPR,
- and
the Edinburgh - Glasgow Rail Improvements Programme.
We will invest to deliver ambitious targets on affordable
housing and invest also in the key area of digital infrastructure, including
our commitment to reach 100% broadband coverage.
There are actions to address climate change and improve
energy efficiency – reducing bills, creating jobs and reducing emissions.
In addition, to assist the work of our Enterprise Agencies,
our Draft Budget provided an increase in resources for HIE and at Stage 1 of
the Budget I confirmed an additional £35m for Scottish Enterprise, to support
loans and equity investments.
A fair and competitive business rates regime is crucial to
our economy.
The Draft Budget took a range of early measures ahead of the
revaluation, including cutting the tax rate and extending the Small Business
Bonus to deliver our commitment to ensure that more than 100,000 businesses pay
no rates at all.
The additional measures I have taken, warmly welcomed by the
business community, will help a further 9,500 business premises and as a result
of our £660m of investment in rates relief ensures 7/10 premises in Scotland
will pay either the same, less or no rates from the 1st of April.
The Tories & Labour, having failed to support any local
rates reliefs so far, should deliver on their rhetoric and back the government
schemes tonight, that have provided relief across the country.
Investment now in infrastructure and support for business
needs to be complemented with investment in our people, in our services and in
our communities.
Education is this Government’s number one priority and this
Budget backs that up with a comprehensive package of investment.
The Bill delivers over £1.6 billion of investment in higher
and further education, ensuring that access for eligible students is free and
maintaining at least 116,000 college places.
It maintains the £50 million Attainment Scotland Fund, to
provide targeted support.
It provides £120 million directly to our schools to address
attainment, particularly in our most disadvantaged areas. Welcomed by schools
across the land.
And we embark on expanding childcare. £60 million of
investment in the first phase of work to expand the provision of early learning
and childcare to 1,140 hours by the end of this Parliament.
This package of measures places equality of opportunity
right at the heart of this Government’s approach to Scotland’s economy.
I proposed a strong settlement for local government in the
draft budget. It included the additional £120 million for educational
attainment, £107 million additional investment in health & social care,
increased capital resources, access to City Deals and increased revenues from
Council Tax changes approved by this parliament.
By working constructively with the Green party, I added to
that proposal at Stage 1 with a further investment of £160 million to be spent
at the discretion of individual authorities.
The council tax freeze provided much-needed relief for
household budgets through difficult times. Council tax is on average is still
lower in Scotland than South of the Border.
Whilst Local authorities are able to generate extra revenues
through increasing the council tax, some clearly consider that they have
sufficient funding to deliver their services.
These are matters for individual local authorities but, I
say again, support for local services has increased thanks to this government.
Using existing resources wisely, a further public service
reform is also necessary.
As just one example, recognising the role that councils play
in the delivery of housing and social care, I am directing additional funding
over the next two years to Scotland Excel, to develop with Scotland’s care providers
and Registered Social Landlords, enhanced procurement capability that will
support plans in these vital areas.
We are backing our police and fire services, investing in
reform with an additional £25m for Police Scotland to support their future plans.
To ensure that our NHS is fit for the future, this
Government is committed to the twin approach of investment and reform. The
Health and Social Care Delivery Plan, published shortly after the Draft Budget,
highlights a range of steps to reform and further improve our health
services.
Balancing that action with investment will see NHS revenue
spending increase to £12.7 billion in 2017-18 - an increase of £120 million
above inflation and the first step towards delivering on our commitment to
increase the NHS revenue budget by almost £2 billion by the end of this
parliament.
Within that, we will for the first time in 2017-18 see
investment in mental health exceed £1 billion and additional investment of £72
million in primary care and GP services, as we increase the budgeted spend on
primary care by £500 million by the end of the Parliament.
And we have today confirmed investment of £7.5 million to
support the development of GP clusters, which will help GP practices to
collaborate on quality improvement, share resources and develop community
health services that are more tailored to their local population.
Presiding Officer, I opened today by highlighting that
voting for this Budget will deliver over £900 million of additional investment
in our public services, our people and our communities.
While this Budget delivers on this Administration’s
Programme for Government it also responded to requests from across this
chamber.
- Support
for businesses and our economy
- increasing
frontline health and police budgets;
- expanding
expenditure on local authority services;
- delivering
a living wage;
- investing
in a new social security system;
- ensuring
no one should pay the bedroom tax;
- free
tuition;
- expanding
early years provision and tackling of the attainment gap;
- improved
energy efficiency;
- increased
house building;
- and
it supports public services that are free at the point of use – including
prescriptions, eye tests and personal care.
Presiding Officer, this budget delivers the best deal for
tax payers and public services in the whole of the UK.
A fairer country, a stronger country and a budget that
delivers for our people.
I commend it to Parliament.
Source: Scottish
Government
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