HOLYROOD is set to pass the Scottish Government’s Budget later today, after MSPs backed plans to set up new income tax rates and bands.

The creation of five new bands, which will effectively cut bills for lower earners, and raise them for others, was passed by 67 votes to 50 yesterday, after Green MSPs joined forces with the SNP. The Tories and Labour opposed the changes, and are set to vote against the final Budget this afternoon, but that will have no effect.

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Speaking ahead of the vote, Finance Secretary Derek Mackay said his spending plans would protect Scotland from cuts made at Westminster. “This Budget provides the investment we need to meet the challenges of today while seizing the opportunities of tomorrow,”

he said. “It delivers increased funding for the NHS, protects low and middle-income earners, and provides further support for our economy, helping businesses, large and small to develop and thrive in the 21st century.

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“The decisions I have taken allow this Government to reverse the £200 million real-terms cut handed down by the UK Government, enabling us to invest an additional £400m in our NHS and protect our vital public services.”

LibDem leader Willie Rennie said Mackay’s Budget was “a missed opportunity” – but confirmed two of his MSPs are expected to vote for it.

Rennie said: “Our two MSPs for Orkney and Shetland will support Budget funds for their incredibly important internal ferries. Our MSPs prevented the collapse of the islands’ lifeline ferry services as a result of an unfulfilled SNP commitment. We will continue to make the case for protecting public services and investing in people and skills to boost the economy.”

The tax plans will see a new 19p “starter” rate for lower earners and a 21p “intermediate” rate for those on middling incomes. The changes will also add 1p to each of the higher and additional rates, making them 41p and 46p respectively.