THE Scottish Government’s Budget plans have passed their first vote in the Scottish Parliament.
Finance Secretary Shona Robison’s Budget Bill passed a Stage One vote after a debate on Thursday.
It includes tax rises for high earners, which Robison hailed as “progressive”, as well as spending cuts in some areas.
Local authorities have also been offered £144 million in compensation for freezing council tax, an amount they say is not enough.
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During the debate, Robison, who is also Deputy First Minister, addressed a report from the Institute for Fiscal Studies (IFS) think tank, which said the Scottish Government is presenting a “misleading picture” around certain funding.
MSPs backed the general principles of the bill by 63 votes to 53.
The IFS said health spending is facing a real-terms cut when in-year top-ups are taken into account.
Robison said: “In-year budgets do change and are still in flux when we introduce the new Budget each year, something that is recognised by the IFS – we are always transparent about this through our Budget revision process.
“I am pleased that the report also recognises that, taken together, our planned changes to income tax and the council tax freeze will be progressive.”
Labour, the LibDems, and the Tories voted against the Budget Bill at stage one.
Liz Smith (above), Scottish Tory finance spokeswoman said: “I don’t think I have ever seen a worse reaction almost on a daily basis, such is the near-universal condemnation of this Budget from a vast array of stakeholders, even some of the SNP’s own backbenchers are presumably now wondering whether they should be supporting this Budget.
“Budgets, of course, are all about choices. I don’t doubt that these choices are very tough.
“But the Scottish Conservatives will put forward our alternative proposals which include abolishing the National Care Service Bill, which is not properly costed, and on that basis we will not be supporting this Budget at stage one.”
READ MORE: MSPs asked to approve 'worst-case scenario' Budget amid Westminster funding crunch
Michael Marra, Scottish Labour’s finance spokesman, said the Budget was “chaotic and incompetent (and) will leave Scots paying much more and get much less in return”.
He said: “It is the result of 17 years of incompetence, of waste and long-term failure to grow our economy.”
Marra said lifeline services were “still in the dark” on how much they would have to spend.
“Let’s be crystal clear despite the rhetoric – it does absolutely nothing for economic growth,” he added.
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