KATE Forbes will today announce her third Budget as the Scottish Government continues to face the challenge of the pandemic and the pressure it is exerting on the NHS.
Health spending is expected to rise by 15% to £17 billion to fund the aim of increasing NHS capacity by 10%, both to continue the fight against Covid and to reduce the backlog of treatments for other conditions.
First Minister Nicola Sturgeon last month announced the Scottish Child Payment, a flagship policy to tackle poverty, would double to £20 a week for families on benefits. Experts have said the policy will cost more than £300 million.
The increases in spending in these areas may mean a squeeze on other services unless taxes are raised to generate extra revenue. Councils and businesses have already said they must not be short-changed.
Forbes introduced 100% rates relief for the tourism, retail, hospitality and aviation sectors for the whole of 2020/21, then extended it another year, to help firms survive a slump in trade. The benefit is due to end in April.
READ MORE: Scotland's block grant to remain 'flat in real terms' for years, economists warn
She is under pressure to offer an additional period of discounted rates to businesses in sectors which continue to be badly hit by the pandemic at a further cost to the public purse.
Ahead of the Finance Secretary’s statement to Holyrood this afternoon, the Scottish Greens, who have two ministers in the Government, said the focus of the Budget would be climate breakdown and child poverty.
The party said the plans will include funding for the doubling of the Scottish Child Payment from April and free bus travel for everyone under 22 from January.
Commenting ahead of the Budget statement, Scottish Greens co-leader Lorna Slater said: “This budget will put preventing poverty and protecting the planet at the heart of government priorities.
“We are doubling the Scottish Child Payment to directly support those worst impacted by cruel cuts from Westminster and we are providing free bus travel to everyone under 22, supporting families to travel and opening up opportunities for young people.
“Covid continues to pile pressure on budgets, inflation and the NHS, but this government is clear that we need a just transition and a green recovery from the pandemic, and today’s budget will be the start of that process.”
The Scottish Conservatives are demanding the SNP deliver a budget to rebuild the economy and boost public services.
The party said they want to see Forbes use the funding settlement from the UK Government to put Scotland on the road to recovery – and ignore Scottish Green cabinet colleagues who they described as “anti-business”.
Key measures shadow finance secretary Liz Smith (below) is calling for include:
- A £631 million business support package, comprising a freeze on the poundage rate payable by businesses and a full year of 75% rates relief on the leisure, hospitality, retail, aviation and newspaper sectors
- To pass on £2.1 billion in UK health consequentials to boost the NHS
- Increase local government funding by £1.2 billion to help councils under financial pressure
- £62 million in additional justice funding to tackle crime
- £55 million for reinstating the help to buy scheme to enable people to get on the property ladder for the first time
The Scottish Conservatives said they believed the package of measures will boost the economy and ease the pressure on vital services.
Smith said: “Scotland’s economy and public services have taken a huge hit during the pandemic, so this budget has to be about recovery.
“The choice for the SNP is stark: stand up for ordinary, hard-working Scots or stand up for their extremist, anti-business Scottish Green coalition partners.
“The SNP have to make the most of the record funding settlement from the UK Chancellor – and the package we’re proposing would do just that.
“Scottish businesses have been devastated by Covid and our extensive rates relief plans would give them the essential breathing space to recover and rebuild.
“Kate Forbes also needs to invest more in Scotland’s crisis-hit NHS by passing on the £2.1billion in UK health consequentials to tackle the huge backlog of patients awaiting treatment.
“Similarly, she must pass on the proportionate share of her increased budget – £1.2 billion – to councils.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here