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Summary

  1. Finance Secretary Derek Mackay pledges a funding increase of £240m for local services
  2. Opposition parties said the amount of cash going direct to councils will be cut.
  3. The finance secretary does not change income tax rates or bands - but does not pass on the UK Treasury's tax cut for high earners
  4. Mr Mackay reveals the draft budget for 2017-18
  5. £120m for the education attainment fund, with the cash going directly to schools, a u-turn with the cash coming from central government and not councils

Live Reporting

By Craig Hutchison and Colin Bell

All times stated are UK

Scottish budget recap: Derek Mackay delivers first key finance statement

Derek Mackay
BBC
Derek Mackay delivered his first Scottish budget

The Scottish government has pledged a funding increase of £240m for local services as he set out his draft budget. 

But opposition parties said the amount of cash going direct to councils will be cut in real terms. 

Finance Secretary Derek Mackay also confirmed he would not change income tax rates or bands - and would also not not replicate the UK Treasury's tax cut for higher earners. 

This means the 40% income tax rate will start at £43,430 in Scotland. But it will start at £45,000 elsewhere in the UK. 

The finance secretary also said £120m of government money would be given directly to schools, with head teachers deciding how the money will be spent. 

The funding is replace plans to council-tax revenues to tackle the attainment gap, with Mr Mackay instead stating local authorities will keep extra cash raised as a result of council-tax reforms.

Here's the SNP's take on the budget....

Scottish Land Commissioners and the Tenant farming Commissioners motion is agreed to unanimously

The motion on the appointment of Scottish Land Commissioners and the Tenant farming Commissioners is agreed to unanimously.

Gov motion
Scottish Parliament

The government motion on Scotland's food waste target, as amended, is agreed to

The government motion on Scotland's food waste target, as amended, is agreed to unanimously

Gov motion
Scottish Parliament
Tory amendment
Scottish Parliament

The Labour amendment on Scotland's food waste target is not agreed to

The Labour amendment on Scotland's food waste target is not agreed to

Labour amendment
Scottish Parliament

The Tory amendment on Scotland's food waste target is unanimously agreed to

The Tory amendment on Scotland's food waste target is unanimously agreed to

Tory amendment
Scottish Parliament

MSPs now will vote on the motion and amendments from the food waste debate

Food
Thinkstock

Scotland has been wasting 1.35 million tonnes of food and drink annually, according to Zero Waste Scotland (ZWS).

Households were responsible for 600,000 tonnes of the waste, while businesses generated about 740,000 tonnes.

The amount of food dumped would, according to ZWS, fill 17 million wheelie bins.

The figure, calculated from detailed information gathered in 2013, will be used as the baseline to measure future improvements.

The Scottish government has set itself the target of reducing food waste by one third by 2025.

Scottish budget reaction: Deloitte tax consultancy view

Ian McCall, from Deloitte tax consultancy, said the Scottish government's decision to introduce a tax differential in the UK for the first time will lead to employers reviewing their "employee population" north and south of the border.

From 2017/2018, the higher rate tax threshold will be £43,430 in Scotland compared to £45,000 in other parts of the UK. 

Mr McCall said 420,000 people in Scotland would be paying £314 more tax in 2017/18 than their equivalents in England, Wales, and Northern Ireland.

Employers north and south of the border might want to review their employee population to identify any Scottish taxpayers and consider whether any amendments to their existing payroll, tax processes, and policies for these employees need to be made.”

Ian McCallDeloitte

Decision time fast approaches, so to whet your appetite ........

Thinkstock
Thinkstock

In February we learned Scottish households throw away the equivalent of 26 million beefburgers a year, according to food waste campaigners.

Zero Waste Scotland said the total value of meat and fish discarded annually was about £190m.

The group estimates reducing food waste could save every household £460 a year.

It has joined forces with an Ayrshire-based butchers chain in promoting leftover recipes and tips to encourage people to discard less food.

Zero Waste Scotland said research carried out for the sustainable economy group WRAP revealed the extent and value of wasted food:

  • 2,900 tonnes of beef alone discarded annually
  • 22,000 tonnes of beef, lamb, poultry and pork thrown away each year, worth £140m
  • £5m worth of food wasted because it is not used in time

Scottish budget reaction: Unite union view

The Unite union says it is "shocked and disappointed" over plans to slash council budgets in Scotland.

It insists that the budget takes Scotland further down the austerity road towards social crisis in Scotland.

Despite having new powers over taxation, the Scottish Government continues to follow Westminster’s austerity road."

William McGonigleUnite regional officer

Analysis: Strathclyde University's Fraser of Allander Institute

Economists at Scotland's leading independent economic research institute says Derek Mackay's budget is a revenue raiser for public services.

However, it also kicked some of the more difficult spending decisions into future years.

Professor Graeme Roy, director of the Fraser of Allander Institute, said: “Today’s Budget contained little in the way of new surprises beyond what had been widely trailed in advance.

“The budget contained a number of policies designed to boost economic growth including cuts to business rates, and with Scotland currently growing at around one third of the UK, the government will be hoping these policies have an immediate impact."

By setting out spending plans for just one year, and with significant real terms cuts coming down the line, a lot of the hard choices have been left for another day."

Professor Graeme RoyFraser of Allander Institute

The institute says that next year’s budget is forecast to rise slightly in real-terms, but further cuts are planned for 2018-19 and 2019-20 of just over 3% in real-terms. Where these cuts will fall remain unknown, the academics add.  

Scottish budget reaction: Transform Scotland

While aviation gets a massive tax break, support for buses has been cut. This will impact upon the lowest income households in Scotland."

Colin HowdenTransform Scotland director

Transform Scotland says it is not happy that there had been a "huge" tax cut for air travellers while investment in Scotland's bus services had been cut.

Its director, Mr Howden, added that there had been an increase in spending on roads, with the budget up to nearly £1bn. 

He said: With an 18% increase in the roads budget just in the past year, the Scottish Government continues to prioritise unsustainable transport."

Scottish budget reaction: National Union of Students Scotland

It’s clear that students are in desperate need of fairer funding, and this budget must go further in addressing that before it becomes final next year."

Vonnie SandlanNUS Scotland President

The NUS Scotland president added that while it was "really positive" to see increased college funding, students were still left with the uncertainty of whether they would receive any financial support.  

She called for some of the additional money to be used to boost the outdated, discretionary system students faced. 

She went on: "And, while making much needed and welcome improvements to postgraduate support, the draft budget falls short on providing much needed increases in university places to deliver on our ambitions for fair access, and support for those students."  

Here are the headlines from the budget from the Scottish government

  • £304m in resource funding for the NHS, which is £120m above inflation
  • £120m to close the attainment gap in 2017-18 - £20m more than previously announced
  • extension to the number of business premises that pay no business rates through the Small Business Bonus Scheme to 100,000 and cutting the Business Rate Poundage by 3.7% for all business properties
Derek Mackay
bbc
  • over £240m of additional spending power to support local government services, with "all revenues raised locally being spent locally by councils"
  • protection in real terms for the revenue budget for policing
  • expansion in the provision of free early learning and childcare entitlement to 1,140 hours by the end of this parliament
  • investment in new and existing infrastructure projects, to support sustainable economic growth including

For more information on the draft Budget 2017-18 please see www.gov.scot/budget.

Scottish budget reaction: Scottish Green Party view

The Scottish Greens say the government's draft budget for 2017-18 is modest in its ambitions when "bold measures are needed" to tackle poverty and protect public services.

Patrick Harvie
BBC
Scottish Greens finance spokesman Patrick Harvie says "at first glance this budget is a missed opportunity when what's needed are bold measures."

They say Scottish ministers are sticking with Income Tax proposals that would give high earners an extra £178 a year. 

The Greens have proposed creating new rates and bands so that "lower earners would get a tax cut and that overall additional funds would be raised for public services".

Scottish Budget reaction: Scottish Labour view

Scottish Labour leader Kezia Dugdale said Mr Mackay had "acted like a Tory chancellor" as she claimed his measures would cut £327m from the overall budgets for local services such as schools and social care.

Unions gathered for an anti-cuts rally outside Holyrood in advance of the budget statement
Empics
Unions gathered for an anti-cuts rally outside Holyrood in advance of the budget statement

Scottish government food waste target

The Scottish government aims to reduce food waste by 33 per cent by 2025, which will put Scotland on track to deliver the UN Sustainable Development Goal of halving food waste by 2050. 

food waste
bbc

This builds dramatically on the 5.7% reduction achieved in Scotland since 2009.   

Scottsh budget reaction: Scottish Conservative view

The Scottish Conservative Party believes Scotland’s place as the "highest-taxed part of the UK has been confirmed" following today’s budget announced by finance secretary Derek Mackay.

The Tories says he revealed to the Scottish Parliament that levies on people and businesses would be higher than elsewhere in Britain.

They add that in addition, Mr Mackay will cut £327m from council funding.

Scottish Budget recap: Scottish government sets out budget plans

Scotland's finance secretary has pledged a funding increase of £240m for Scotland's councils as he set out his draft budget.

Derek Mackay also confirmed he will not change income tax rates or bands - but will not replicate the UK Treasury's tax cut for higher earners.

Derek Mackay
BBC
Mr Mackay's budget was the first since Holyrood was given new tax powers

This means the 40% income tax rate will start at £43,430, while in the rest of the UK it will be £45,000.

He also said £120m of government money will be given directly to schools.

The funding will replace plans to council-tax revenues to tackle the attainment gap, with Mr Mackay instead stating local authorities will keep extra cash raised as a result of council-tax reforms.