Scottish Parliament, 3 February 2016

383 contributions from 59 members. The official report.

Social Justice, Communities and Pensioners’ Rights

John Scott (Conservative, Ayr)

Good afternoon. The first item of business this afternoon is portfolio questions. So that we can get as many members in as possible, I would prefer short and succinct questions and answers.

Housing Supply Budget 2016-17

Gavin Brown (Conservative, Lothian)

1. To ask the Scottish Government what the priorities are for the housing supply budget in 2016-17. (S4O-05504)

Alex Neil (Scottish National Party, Airdrie and Shotts)

Let me answer succinctly, Presiding Officer.

This Government’s priority is to increase affordable housing supply across Scotland, with a particular focus on increasing the number of social rented homes. In addition, we recognise the importance of offering a range of home ownership options, to help people to buy a new home. All our investment in housing not only provides more homes for rent and home ownership but helps to support construction jobs and sustain business across Scotland.

Gavin Brown (Conservative, Lothian)

I am grateful for that succinct answer. Is it correct to say that the help-to-buy budget is being reduced? If so, by how much?

Alex Neil (Scottish National Party, Airdrie and Shotts)

The help-to-buy budget is £195 million and is funded through financial transactions. All financial transactions funding is committed, including to other parts of the housing budget. Nearly 7,500 people will be assisted by the new phase of the help-to-buy scheme. That is an increase of 1,000 on the number of people who were assisted by the first phase.

Homelessness (Prevention)

Jayne Baxter (Labour, Mid Scotland and Fife)

2. To ask the Scottish Government what it is doing to prevent people becoming homeless. (S4O-05505)

Margaret Burgess (Scottish National Party, Cunninghame South)

Preventing homelessness is a priority for the Scottish Government, and we have seen consistent falls in recorded homelessness in Scotland in recent years. The falls in homelessness are due to the promotion of the housing options approach to prevention, which local authorities and their partners have developed, with financial and practical support from the Scottish Government. We are committed to continual improvement in the delivery of the approach. Non-statutory guidance and a training toolkit will shortly be available to help to improve the consistent delivery of homelessness prevention.

Preventing homelessness is part of our overall housing strategy. With investment of more than £1.7 billion in this parliamentary session, we have exceeded our target to deliver 30,000 affordable homes, including 20,000 for social rent. We have pledged to deliver 50,000 new affordable homes over the next five years.

Jayne Baxter (Labour, Mid Scotland and Fife)

Homelessness is becoming increasingly visible on the streets of our cities this winter. “The homelessness monitor: Scotland 2015”, which Crisis published recently, noted that attempts to prevent homelessness are often “relatively ‘light touch’”, consisting primarily of information and signposting. Will the minister commit to a renewed approach to tackling and preventing homelessness, including a new cross-departmental strategy?

Margaret Burgess (Scottish National Party, Cunninghame South)

We have a strong focus on preventing homelessness in Scotland, and we work with a stakeholder group, the homelessness prevention and strategy group. I am a member of the group, as are the Convention of Scottish Local Authorities, Shelter Scotland, NHS Health Scotland and other organisations. We are looking closely at how we ensure that everyone who is homeless in Scotland can access the services and the support that is available to them, and we review the position at every meeting. Reducing homelessness in Scotland is an absolute priority.

Alex Johnstone (Conservative, North East Scotland)

Will the minister consider looking again at people who have specific problems holding down a tenancy, to see whether additional aid can be given to support such people with their tenancies and prevent them from becoming homeless?

Margaret Burgess (Scottish National Party, Cunninghame South)

The member is right to highlight the issue. Support to keep people in tenancies is on-going. I visited a housing options team in Ayr this week to see how that works in practice. If there is practice that we can spread to other local authority areas and other housing options teams, who meet regularly, we will do that. Lots of good work is going on in local authorities across the country to support people with their tenancies. It is recognised that the approach works and prevents homelessness, and we will continue to work with people to ensure that we see the results of that activity.

Climate Change Targets (Fuel Poverty and Housing)

Graeme Pearson (Labour, South Scotland)

3. To ask the Scottish Government what analysis it has made of the effect of the reduction in fuel poverty and energy efficiency funding in the “Draft Budget 2016-17” on its ability to meet its statutory fuel poverty and housing climate change targets. (S4O-05506)

Margaret Burgess (Scottish National Party, Cunninghame South)

We have allocated £103 million to tackle fuel poverty and energy efficiency in 2016-17, which will be used to help install energy efficiency measures, including solid wall insulation, in 14,000 homes, building on the more than 900,000 measures that have been delivered since 2008.

We have broadly maintained the expenditure that is available for fuel poverty and energy efficiency in the budgets that we have under our control, in what is a tough financial climate. The 2015-16 budget was increased over the course of the year with £15 million of consequentials from the United Kingdom Government’s green deal home improvement fund. That scheme was ended without warning by the UK Government and is therefore no longer available to us.

The Scottish Government is fully committed to eradicating fuel poverty in Scotland and overall we are on track to meet our statutory 2020 target of a 42 per cent reduction in greenhouse gas emissions, but we recognise the scale of the challenge before us.

Graeme Pearson (Labour, South Scotland)

The Government’s Scottish house condition survey has just reported. Between 2012 and 2014, it records a 3 per cent rise in people in East Ayrshire, my area, reporting that they are living in fuel poverty, and a 1 per cent rise in Dumfries and Galloway. Has the minister considered any specific steps to deal with that rise in fuel poverty, in light of the 13 per cent cut in the budget allocation?

Margaret Burgess (Scottish National Party, Cunninghame South)

The methodology that is used in the Scottish house condition survey to estimate fuel poverty was recently changed to include the contribution of the warm homes discount scheme. However, we are always considering ways to reduce fuel poverty. Recently, the Cabinet Secretary for Social Justice, Communities and Pensioners’ Rights announced the energy efficiency programme for Scotland and the national infrastructure scheme, which is looking at the detail of ways in which we can improve energy efficiency in homes—in the social rented sector and other sectors—and in other buildings across Scotland.

All of that is part of our energy efficiency programme. We will continue to make progress with that programme and work with our stakeholders. We have a strategic working group that will advise and inform the Government. It is working alongside the Scottish fuel poverty forum and the rural fuel poverty task force to build on our efforts and drive forward the fuel poverty agenda.

Tavish Scott (Liberal Democrat, Shetland Islands)

Is the minister aware that the Scottish house condition survey, which has been mentioned, shows that more than half of households in Shetland are in fuel poverty? What specific steps will the Government take to address the particular problems in rural communities such as Shetland?

Margaret Burgess (Scottish National Party, Cunninghame South)

As I said in my previous answer, we have set up the rural fuel poverty task force, which is specifically considering issues in global and remote areas. We have also adapted our home energy efficiency programme Scotland—HEEPS—scheme to take into account the issue of fuel poverty in rural areas and ensure that more can be spent in those areas, because we recognised the difficulties that they face.

We have implemented a number of other measures to help with the training and accreditation of the installers, to ensure that we can support local businesses in rural areas as well.

Kenneth Macintosh (Labour, Eastwood)

As well as cutting the fuel poverty budget in this year’s budget, the minister has cut business rates relief for the renewables industry in Scotland. How much money will that cost, and what will be the impact on climate change of that measure?

The Deputy Presiding Officer

You can answer that if you want, minister, but it is not relevant to the initial question.

Margaret Burgess (Scottish National Party, Cunninghame South)

I will speak to the Minister for Business, Energy and Tourism and write to the member on that issue.

Elections (Participation Rights)

Christian Allard (Scottish National Party, North East Scotland)

4. To ask the Scottish Government what rights non-United Kingdom European Union citizens who live in Scotland have to participate in elections. (S4O-05507)

Joe FitzPatrick (Scottish National Party, Dundee City West)

Non-UK EU citizens who live in Scotland can vote at European Parliament, Scottish Parliament and local government elections. In addition, Commonwealth citizens from Malta and Cyprus and citizens of the Republic of Ireland who are resident in Scotland can vote at UK parliamentary elections.

Christian Allard (Scottish National Party, North East Scotland)

As the minister will know, that does not concern me: I live in neither Malta nor Cyprus. Would he agree with me that stopping EU citizens who reside in Scotland from voting in the EU referendum—after they will have been able to vote in every Scottish parliamentary election and in two Scottish constitutional referendums since 1997—is in fact a breach of human rights law?

Joe FitzPatrick (Scottish National Party, Dundee City West)

The Scottish Government is very disappointed that the franchise is not being extended to EU nationals resident in the UK. Around 170,000 non-UK EU citizens have chosen to make Scotland their home. EU citizens can vote in Scottish Parliament elections, as I said. Most recently, as Christian Allard said, they had a vote in our independence referendum.

The case for extending to EU citizens a vote in the EU referendum is clear, and I urge the UK Government to reconsider. While it is at it, the UK Government should make arrangements to allow 16 and 17-year-olds to vote, too.

Argyll and Bute Council (Discussions)

Jamie McGrigor (Conservative, Highlands and Islands)

5. To ask the Scottish Government what recent discussions it has had with representatives of Argyll and Bute Council. (S4O-05508)

Marco Biagi (Scottish National Party, Edinburgh Central)

I am meeting Argyll and Bute Council on 1 March to discuss matters of mutual interest. Other ministers and officials also meet council representatives regularly.

Jamie McGrigor (Conservative, Highlands and Islands)

Is the minister aware of the extent of the concern among councillors and the public in Argyll and Bute about the severity of the spending cuts that are being considered there and about their impact on vital local services? In particular, can he comment on the possible loss of core funding to the Argyll and Bute citizens advice bureaux network, which directly prevents dozens of people each year from becoming homeless and thus saves the council hundreds of thousands of pounds every year?

Marco Biagi (Scottish National Party, Edinburgh Central)

The local government settlement as a whole has been challenging but fair. That applies to Argyll and Bute as much as it does to anywhere else, and represents a 2 per cent reduction of the overall expenditure available.

I point out that, for Argyll and Bute, many of the things that we are asking for come with attached funding. The council tax freeze will be funded to the tune of £1.4 million for Argyll and Bute Council, and its share of the £250 million for health and social care is £4.6 million. I will endeavour to investigate the specific issue in Argyll and Bute that the member raises, as I am not aware whether that is a local funding issue or a national funding issue. I will write to the member on the matter.

Neil Findlay (Labour, Lothian)

When the minister meets representatives of Argyll and Bute Council and other councils, is he not embarrassed and ashamed of what his Government is doing to local government?

Marco Biagi (Scottish National Party, Edinburgh Central)

It is always a ray of sunshine when Neil Findlay comes to ask a question, isn’t it? I am very proud of the effect that our policies have had on local government since we came into government.

Neil Findlay (Labour, Lothian)

Proud?

Marco Biagi (Scottish National Party, Edinburgh Central)

We came into government and we immediately removed £2.7 billion of ring fencing, allowing local government to address its own priorities and answer to its own electorate. We have consistently protected local government from the scale of the cuts that have happened in England. If we really want to see what an embarrassing record on local government is, I suggest looking at England—[Interruption.]

The Deputy Presiding Officer

Mr Findlay.

Marco Biagi (Scottish National Party, Edinburgh Central)

There, figures range from 27 per cent in cuts to a figure I saw last night in an analysis from the Institute for Fiscal Studies, which said that, in the run-up to the 2015 election, there was a 36 per cent cut in central Government funding to local government in England. We are far away from that and I am very proud that we are.

Third Sector Services (Commissioning)

Margaret Mitchell (Conservative, Central Scotland)

6. To ask the Scottish Government what recent discussions it has had with local authorities in relation to the commissioning of third sector services. (S4O-05509)

Marco Biagi (Scottish National Party, Edinburgh Central)

Scottish ministers and Government officials regularly meet representatives of all local authorities to discuss a wide range of matters of current interest to local organisations. Under the local authority single outcome agreement, delivery decisions on commissioning services are made locally, reflecting knowledge and understanding of local need.

Margaret Mitchell (Conservative, Central Scotland)

Can the minister outline the process for the allocation of the additional £1.85 million of criminal justice funding, which was invested in providing additional support for victims of sex crimes across Scotland, including male and female survivors of childhood sexual abuse? Can he indicate when the many small charities that do specialist work in this area and that are awaiting decisions about their core funding applications, which were submitted in September 2015, can expect a decision?

Marco Biagi (Scottish National Party, Edinburgh Central)

The member raises some very important issues and I will endeavour to have my justice colleagues investigate and respond in as short order as possible.

Home Ownership (Support)

Graeme Dey (Scottish National Party, Angus South)

7. To ask the Scottish Government how many people have received support into home ownership since 2007. (S4O-05510)

Margaret Burgess (Scottish National Party, Cunninghame South)

Since 2007, the Scottish Government has spent more than £800 million supporting more than 20,000 households into home ownership through a range of initiatives, which include the low-cost initiative for first-time buyers scheme and the help to buy (Scotland) scheme.

From sales forms returned by buyers, we know that between 70 and 75 per cent of all sales across the different low-cost home ownership and help to buy schemes were to buyers aged between 18 and 34.

Graeme Dey (Scottish National Party, Angus South)

Can the minister outline how the Government intends to build on that success in supporting people into home ownership and whether such measures will be targeted at those who need support to get on to or move up the housing ladder?

Margaret Burgess (Scottish National Party, Cunninghame South)

Yes, I can certainly say to the member that we are committed to doing everything that we can to help first-time buyers and existing homeowners to buy a home where that is sensible and sustainable for them.

For 2015-16, we have allocated £160 million to help up to 5,000 people buy a home; £80 million of that has been allocated to our popular open market shared equity scheme to help up to 2,000 first-time buyers buy their first home and £80 million has been allocated to our help to buy (Scotland) scheme. It is an affordable build scheme to help first-time buyers and existing homeowners to get a new-build home. The £80 million allocated to the help to buy (Scotland) affordable new-build scheme forms part of the £195 million allocated over the next three years to help up to 7,500 homeowners to buy a new home.

Gavin Brown (Conservative, Lothian)

The minister just said that £160 million has been allocated for 2015-16. What will the amount be for 2016-17? [Interruption.]

Margaret Burgess (Scottish National Party, Cunninghame South)

Sorry, I am just checking what we announced, but certainly in the budget announcement we set out that we will be investing a further £80 million through the open market shared equity scheme in 2016-17. That remains the same as we have spent in 2015-16. Also, £80 million has already been announced of the £195 million that has been allocated to help to buy over the next three years. That announcement was made by the cabinet secretary last month, I believe.

Housing (Dumfries and Galloway)

Elaine Murray (Labour, Dumfriesshire)

8. To ask the Scottish Government how many homes for social rent and how many for mid-market rent will have been built in Dumfries and Galloway between May 2011 and March 2016. (S4O-05511)

Margaret Burgess (Scottish National Party, Cunninghame South)

Between 1 May 2011 and 30 September 2015, £23 million of funding supported the construction of 642 homes for social and mid-market rent in Dumfries and Galloway. That included 595 social rented homes and 47 intermediate rented homes. Our projected investment for this year is a further £8.255 million to support the building of more affordable homes in the region.

A “Housing Statistics for Scotland Quarterly Update” will be published in March 2016 on the Scottish Government website. It will include the number of completions for the period October to December 2015. Housing statistics to the end of March 2016 will be published in June 2016.

Elaine Murray (Labour, Dumfriesshire)

I thank the minister for her full response. Minister, I was contacted recently by a couple with four children in a two-bedroom property with a box-room. They had 40 overcrowding points and they were one of 24 families who were applying for eight four-bedroom properties in the Annan area, none of which have become available in the past 12 months.

Consideration was being given to other methods of funding for housing associations to build additional properties for social rent, such as the use of pension funds. Can the minister give any update on whether progress has been made in looking for additional sources of funding?

Margaret Burgess (Scottish National Party, Cunninghame South)

We have set a clear target of 50,000 new affordable homes for the next five years of the Parliament, backed by £3 billion of investment. We are also working with housing associations, local authorities and right across the sector to look at other ways of supporting and funding affordable rented houses, so yes, that work is on-going. We have a scheme up and running in Falkirk through the Falkirk pension fund, which can set an example to other pension funds. It is clearly up to the trustees of funds where they wish to make their investments but, yes, we are certainly still looking at that issue.

Attendance Allowance

Joan McAlpine (Scottish National Party, South Scotland)

9. To ask the Scottish Government what assurances it can provide on the future of attendance allowance in Scotland in light of concerns in England regarding its proposed transfer to local authorities. (S4O-05512)

Alex Neil (Scottish National Party, Airdrie and Shotts)

The United Kingdom Government has not yet published its consultation on transferring attendance allowance to local authorities down south, so I am not in a position to comment in any detail on the proposal. However, my understanding is that it will not impact on the devolution of attendance allowance to the Scottish Parliament that will be implemented through the Scotland Bill.

We are considering how we will use the new devolved social security powers, and we will publish our plans in the coming months. In the meantime, we will continue to engage with users and stakeholders as we develop the detail of our policies. I can assure members that current attendance allowance recipients will be protected however we choose to use the devolved powers.

Joan McAlpine (Scottish National Party, South Scotland)

There is a lot of concern in England about devolving attendance allowance, because of what happened to the independent living fund. When the ILF was devolved to English local authorities it was cut—

The Deputy Presiding Officer

Can we have a question?

Joan McAlpine (Scottish National Party, South Scotland)

—whereas when it was devolved to the Scottish Government it was continued. Can the cabinet secretary assure us that something similar will happen to attendance allowance?

Alex Neil (Scottish National Party, Airdrie and Shotts)

The independent living fund is a good example of how we protect services in Scotland, compared to the axing of services south of the border. The Scottish independent living fund is a new scheme in Scotland that went live in July 2015, safeguarding the rights of 2,800 existing ILF users in Scotland, with an extra £5 million committed to open up the scheme to new users.

The successful creation of the Scottish welfare fund, after the abolition of elements of the UK Government’s social fund, is another example of where we have protected provision of a vital service and increased the funding over and above that devolved by the UK Government. The latest statistics for the welfare fund show that it has paid out £81 million and helped 178,000 households since April 2013.

Equal Pay Claims (Local Authorities)

Stuart McMillan (Scottish National Party, West Scotland)

1. To ask the Scottish Government how many local authorities have outstanding equal pay claims. (S4O-05514)

Annabelle Ewing (Scottish National Party, Mid Scotland and Fife)

Local authorities as employers are responsible for dealing with equal pay claims by their staff, so information on the number of claims is not held centrally. The Minister for Local Government and Community Empowerment, Marco Biagi, has written to all Scottish local authorities asking for information about equal pay claims. The letter reiterated the need for cases to be resolved with urgency and commitment, so that those affected receive their legal entitlements and local authorities meet their legal obligations.

Stuart McMillan (Scottish National Party, West Scotland)

The minister will be aware that the long-standing issue of equal pay claims was raised in the chamber in November, when the First Minister encouraged local authorities to conclude settlements as quickly as possible. Thankfully, Fife Council has done that since then, but elsewhere many claims remain outstanding.

The minister said that the local government minister wrote to local authorities. Will she consider writing to local authorities before Parliament dissolves for the election to impress on them the importance of the issue, so that they can allow people to move on with their lives?

Annabelle Ewing (Scottish National Party, Mid Scotland and Fife)

I share the frustration of the member and his constituents who may be affected with the on-going delays to the settlement of the claims, but I reiterate that the settlement of the claims is the responsibility of local authorities.

Mr Biagi wrote to all local authorities on 28 October. He received only 11 replies and wrote again to the local authorities that did not reply on 11 December. Following that second letter, it has been agreed that there will be a meeting between the minister and representatives from the Convention of Scottish Local Authorities and the Society of Local Authority Chief Executives and Senior Managers, which will take place on 12 February.

I encourage all local authorities that have outstanding claims to do the right thing and ensure that they are settled as quickly as possible.

Women’s Employment

Claudia Beamish (Labour, South Scotland)

2. To ask the Scottish Government what information it has on women employed in part-time and temporary work. (S4O-05515)

Annabelle Ewing (Scottish National Party, Mid Scotland and Fife)

The labour force survey that is produced by the Office for National Statistics is the source of information on women employed in part-time and temporary work. The latest available labour market statistics, which are from September to November 2015, show that female part-time working decreased by 38,000 over the year and female temporary working decreased by 7,000 while female full-time working increased by 27,000 over the year.

Claudia Beamish (Labour, South Scotland)

Although that is encouraging, I have information from the Scottish Parliament information centre that, in Scotland in 2015, 41 per cent of women worked part-time compared to 11 per cent of men. As women are more likely to work part-time and make up the majority of those in the workforce who are part-time, Close the Gap suggests that it is relevant to compare men and women’s earnings on that basis.

The Deputy Presiding Officer

What is your question?

Claudia Beamish (Labour, South Scotland)

For every £1 that a man earns, a woman earns 83.2p. What is the Scottish Government actively doing to rectify that very bad situation?

Annabelle Ewing (Scottish National Party, Mid Scotland and Fife)

If I have understood correctly, the member’s supplementary question principally concerns the issue of the gender pay gap. Of course, the gender pay gap is unacceptable. It is unacceptable that we are still talking about it in 2016. In Scotland, the gap has decreased from 9.1 per cent in 2014 to 7.3 per cent in 2015, but of course it is still unacceptable that there is any gender pay gap. The equal pay legislation was introduced in Westminster in 1970. Notwithstanding the success of Westminster Governments of both hues, we are still faced with that situation.

The Scottish Government will do everything that we can to ensure that the pay gap is narrowed to the point at which it no longer exists. We are pursuing a number of important initiatives in that regard, such as the expansion of childcare, the promotion of flexible working, challenging pay and pregnancy and maternity discrimination, challenging occupational segregation, promoting a 50:50 gender balance on boards, and of course promoting the living wage for social care workers. I hope that local authorities across Scotland will respond to the very good funding deal that is on offer and do the right thing by social care workers, the majority of whom are of course women.

Trade Union Bill

Malcolm Chisholm (Labour, Edinburgh Northern and Leith)

3. To ask the Scottish Government what recent discussions it has had with the United Kingdom Government about the Trade Union Bill. (S4O-05516)

Roseanna Cunningham (Scottish National Party, Perthshire South and Kinross-shire)

In addition to a telephone call with Nick Boles, Minister of State for Skills, on 8 October 2015, I have now written to him on five separate occasions setting out the Scottish Government’s increasing concern with the bill proposals and seeking Scotland’s exemption from the extent of the bill. However, he has not yet responded to any of those letters.

The First Minister raised the issue in her meeting with the Prime Minister on 14 December. The Scottish Parliament debate that was held on 26 January demonstrated the opposition of Parliament to the bill. I want to reassure each and every worker in Scotland that we are doing what we can to deal with the potentially damaging legislation. Just before I came into the chamber, I received confirmation of a meeting with Nick Boles, specifically to discuss the Trade Union Bill. That will take place tomorrow morning.

Malcolm Chisholm (Labour, Edinburgh Northern and Leith)

I support any and all means to defeat this appalling bill and its intrusion on areas of devolved competence. However, if all else fails, will the Scottish Government join councils in Scotland in refusing to comply with the legislation?

Roseanna Cunningham (Scottish National Party, Perthshire South and Kinross-shire)

All that I can do is to refer to the words of the First Minister, who has said that we will go on doing what we are doing at the moment. There are aspects of the bill that it will be impossible to avoid. We are currently discussing some aspects directly with the Scottish Trades Union Congress among others, including the Convention of Scottish Local Authorities, to establish how best we can deal with the likely consequences if the worst comes to the worst and the bill is passed. However, we are not giving up on seeking exemptions in respect of the various aspects.

Skills and Training (Adults)

Elizabeth Smith (Conservative, Mid Scotland and Fife)

4. To ask the Scottish Government what innovative steps it is taking to help improve skills and provide training for adults. (S4O-05517)

Annabelle Ewing (Scottish National Party, Mid Scotland and Fife)

Achievement of our ambitions for a more productive and inclusive Scotland involves a greater focus on strengthening and developing the skills of all our people. The Scottish Government is committed to developing those skills, whether in colleges, universities, communities or workplaces, and to ensuring that our people are able to thrive in sustainable employment. In particular, Skills Development Scotland delivers an all-age careers service. We also have our modern apprenticeship programme, which applies in key and enabling sectors to those who are aged over 25.

Elizabeth Smith (Conservative, Mid Scotland and Fife)

The minister will be aware that the principal at Dundee and Angus College, Grant Ritchie, has suggested that one way of addressing the key education needs of the long-term unemployed would be to provide more opportunities to develop literacy in information technology. He has suggested that colleges could help to do that by opening in the evening to provide additional classes. Will the Scottish Government undertake to discuss with Colleges Scotland that important initiative?

Annabelle Ewing (Scottish National Party, Mid Scotland and Fife)

I thank the member for her interesting point. I suspect that I should discuss it first with the Cabinet Secretary for Education and Lifelong Learning, because it seems to fall within her remit. I promise to do that.

I know that Dundee and Angus College has been pursuing an interesting programme with its code academy, which I have been interested in learning about. I will visit the college in a couple of weeks, albeit to discuss another matter, but I will take the opportunity when I am there to hear more about the proposals that the member referred to.

Stuart McMillan (Scottish National Party, West Scotland)

The 2015 employer skills survey showed that 71 per cent of Scottish employers offer their staff training. That is a higher rate than in England, Wales or Northern Ireland. Will the minister provide an update on what else can be done to continue that good progress?

Annabelle Ewing (Scottish National Party, Mid Scotland and Fife)

The recent statistics show that employers in Scotland are doing more and more to ensure that young people are given an opportunity. We will continue to work as hard as we can to bring more employers on board.

We have set a very ambitious target for modern apprenticeships of 30,000 starts a year by 2020. We are working closely with employers, training providers, the third sector and others to ensure that young people get the training that they need and that employers have the possibility to create a more dynamic workplace with young people on site and to ensure proper succession planning for themselves.

Richard Simpson (Labour, Mid Scotland and Fife)

What progress has been made on ensuring that people with disabilities enter the modern apprenticeship scheme? When we previously looked at the percentages of people who are disabled who had entered the scheme, the figure for England was around 7 per cent, while the figure for Scotland was less than 1 per cent. The Government gave an undertaking to do something about that. What has happened since?

Annabelle Ewing (Scottish National Party, Mid Scotland and Fife)

I remember that exchange in the chamber with Dr Simpson. Since that time, a number of issues have come to light. One is the issue of self-certification—whether someone certifies that they have a disability. If we leave that issue—which we have already aired in the chamber—to one side, the member may be aware that we have published, through Skills Development Scotland, the equality action plan that I referred to in previous debates. I believe that it was published on 2 December last year. We will work closely with SDS to ensure that we meet the objectives and targets that are set forth in that plan on this important issue.

Highlands and Islands Enterprise (Fair Work)

Rob Gibson (Scottish National Party, Caithness, Sutherland and Ross)

5. To ask the Scottish Government what aspects of fair work it has discussed recently with Highlands and Islands Enterprise. (S4O-05518)

Roseanna Cunningham (Scottish National Party, Perthshire South and Kinross-shire)

The Scottish Government promotes the benefits of fair work in the Highlands and Islands, as we do across Scotland. We have regular discussions with Highlands and Islands Enterprise on a range of issues. For example, HIE has actively contributed to the development and implementation of the Scottish business pledge, discussions on future employment services and Investors in People. In October 2015, HIE contributed to discussions with the fair work convention in Inverness. Account managers from HIE regularly discuss fair work, innovation and internationalisation with individual businesses as part of their efforts to boost productivity and inclusive growth.

Rob Gibson (Scottish National Party, Caithness, Sutherland and Ross)

I do not know whether the cabinet secretary has sought HIE’s views on the impact on hotels of changing to the Scottish Government’s version of the living wage for hospitality workers, as the Scalloway hotel in Shetland has announced that it has done.

Roseanna Cunningham (Scottish National Party, Perthshire South and Kinross-shire)

I have not had a specific discussion with HIE about the Scalloway hotel announcement, which we strongly welcome. I am pleased to say that the number of living wage-accredited organisations is growing rapidly and has now reached 460 out of our target of 500. Of those organisations, 37 are in the HIE area.

The accreditation of the Scalloway hotel—an excellent hotel—emphasises that employers from across Scotland, and in all sectors, are recognising the benefits of fair pay. There are now a variety of accredited employers in tourism and hospitality that are making significant efforts to reward staff—that is in two sectors where roles are traditionally low paid. The move that the Scalloway hotel has taken shows that it can be done.

Employment Support Services (Devolution)

Christina McKelvie (Scottish National Party, Hamilton, Larkhall and Stonehouse)

6. To ask the Scottish Government when it last discussed devolution of employment support services with the United Kingdom Government. (S4O-05519)

Roseanna Cunningham (Scottish National Party, Perthshire South and Kinross-shire)

The Scottish Government is in frequent discussions with the UK Government regarding the contracted employment support services that will be devolved from April 2017. My next meeting with the UK Minister for Employment, Priti Patel, is scheduled for 11 February. My officials continue to work with those in the UK Government to build strong relations that are focused on the future needs of unemployed Scots.

Christina McKelvie (Scottish National Party, Hamilton, Larkhall and Stonehouse)

Does the cabinet secretary agree that cutting the budget by 87 per cent after deciding to devolve the powers is one of the things that break the so-called vow and that it goes against the spirit of the Smith agreement?

Roseanna Cunningham (Scottish National Party, Perthshire South and Kinross-shire)

The drastic reduction in programme spend that the UK Government has suggested undermines the spirit and intention of the Smith commission. More to the point, it fundamentally reduces the Scottish Government’s ability to provide employment support for those who face significant barriers to entering employment. We are still awaiting progress through the fiscal framework on details of the final settlement that the UK Government is to offer. However, we believe that what is proposed on employment support would create severe financial restrictions for us to operate under following devolution of the services.

Employment Skills and Training (Ayrshire)

Margaret McDougall (Labour, West Scotland)

7. To ask the Scottish Government what skills and other training it provides to people in Ayrshire who have been made redundant. (S4O-05520)

Roseanna Cunningham (Scottish National Party, Perthshire South and Kinross-shire)

Redundancy triggers support through our initiative for responding to redundancy situations, partnership action for continuing employment, which is more commonly known as PACE. Skills Development Scotland leads on the delivery of PACE support on the Scottish Government’s behalf in conjunction with a number of key partners, including the Department for Work and Pensions. Through providing skills development and employability support, PACE aims to minimise the time for which individuals who have been affected by redundancy are out of work.

PACE support is tailored to meet individual needs and local circumstances. In Ayrshire, from April 2015 until December 2015, PACE support was provided to 552 individuals from 13 companies.

Margaret McDougall (Labour, West Scotland)

The minister will be aware that, in recent months, there have been announcements of job losses that roll into the hundreds across Ayrshire. Around 60 job losses have been announced at Clydeport, 77 at Red Cross house and 212 including agency workers at Mahle in Kilmarnock. Just last week, we heard that the Brantano and Next stores in Irvine are closing.

In addition, Howco in Irvine will shed 50 jobs after public money was invested in the plant, although neither the Scottish Government nor Scottish Enterprise appears to be willing to disclose to Labour councillor Joe Cullinane how much public money was invested for the return of 50 P45s. What will the Scottish Government do about the steady leakage of jobs in Ayrshire? What will it do to protect the Ayrshire economy?

Roseanna Cunningham (Scottish National Party, Perthshire South and Kinross-shire)

We work hard to use a number of ways to protect the Scottish economy as well as local labour markets. Work will be done by Skills Development Scotland through the apprenticeship scheme, through local employers and through the local developing the young workforce group. The local authorities are also actively encouraging employment opportunities through their local employment hubs. A great deal is being done. When people are made redundant, we put in as much support as we can to ensure that their period of redundancy lasts as little time as possible.

Kenneth Gibson (Scottish National Party, Cunninghame North)

Does the cabinet secretary agree that the Ayrshire growth deal will do a lot to help to create jobs in North Ayrshire and put a lot of the redundant workers back to work? It shows the tremendous co-operation between the three Ayrshire councils, the Scottish Government and private business that that deal is on-going and should deliver substantially for Ayrshire in the years ahead.

Roseanna Cunningham (Scottish National Party, Perthshire South and Kinross-shire)

I know that there is a great deal of co-operation between the three councils and that is to be commended. They are delivering and developing a good employability offer locally. I am delighted at the increased number of opportunities that have been provided in North Ayrshire. I am also encouraged by the partnership between local authorities, Skills Development Scotland, local employers and wider partners in supporting our ambitions for the further expansion of the programme and the opportunities that it will provide for young people and employers in the area.

Budget (Scotland) (No 5) Bill: Stage 1

Tricia Marwick (None, Mid Fife and Glenrothes)

The next item of business is a debate on motion S4M-15522, in the name of John Swinney, on the Budget (Scotland) (No 5) Bill.

John Swinney (Scottish National Party, Perthshire North)

Last week, I introduced the Budget (Scotland) (No 5) Bill for 2016-17, which will implement the draft budget that I set out in December. I welcome the report of the Finance Committee, and I will formally respond to it in advance of stage 3, as agreed with the committee.

The budget that is before Parliament today is a budget that will promote growth in the economy and reform public services. It will ensure that the maximum impact is generated from our expenditure and that decisions on revenues raised reflect our principles-based approach to taxation.

Public spending in Scotland continues to face significant challenges, as another real-terms reduction has been applied to our total departmental expenditure limit for 2016-17. Looking ahead, the settlement that we received in the United Kingdom spending review will mean that the Scottish budget will continue to fall in real terms in every year until the end of this decade.

The financial context is also set by the continued pressure on household incomes. Since its election, the Government has been determined to protect household incomes, particularly for low earners. Our longer-term financial decisions are influenced by the expectation that we will get further powers from what will be the Scotland Act 2016. In December, I said that the Government would set out its longer-term intentions on use of those new powers before Parliament is dissolved for the election. To use those powers, we need a fiscal framework that delivers on the Smith commission; it must be a framework that is faithful to that agreement and fair to Scotland.

I met the Chief Secretary to the Treasury again this week, and work is going on, as I speak, to try to reach an agreement, but I must make it clear to Parliament that there is a long way to go; there is significant difference between our respective views and time is short to reach an agreement. On one point, I want to be absolutely definitive: I will sign only a deal that is fair to Scotland and is consistent with the principles that were agreed by the Smith commission. I will not sign a deal that is harmful to the interests of the people of Scotland.

The budget provides the resources that are necessary to deliver a strong and sustainable economy while tackling economic inequality. It delivers an extensive capital programme that will support our economy, enhance our social infrastructure and help to address climate change. It takes forward a bold and ambitious programme of public sector reform, together with our delivery partners, to ensure the sustainability and quality of our services, and it delivers on our commitments to the people of Scotland at a time of continued pressure on household incomes.

In the December budget statement, the Government proposed a Scottish rate of income tax for the first time. The limited nature of the income tax power that is currently available to the Scottish Parliament allows only for a single rate to be set and then applied to all three income tax bands, which means that any increase on the wealthiest taxpayers would also apply to those on the lowest incomes. The proposals from other parties to increase income tax by 1p next year would hit the taxpayers who are least able to pay.

Willie Rennie (Liberal Democrat, Mid Scotland and Fife)

How does that comment match the comment that John Swinney made to the Finance Committee last month? He said:

“I view the Scottish rate of income tax as a progressive power ... Clearly, people on higher incomes will pay comparatively more than people on lower incomes.”—[Official Report, Finance Committee, 13 January 2016; c 40.]

Therefore, surely what he has just said is wrong.

John Swinney (Scottish National Party, Perthshire North)

If Mr Rennie had been listening, he would know that what I said was that the proposal to increase income tax by 1p next year would hit the taxpayers who are least able to pay. Of course it would. It would put up tax for the lowest-paid people in our society, whether those individuals were newly qualified teachers, police officers, firefighters, postal staff, bus drivers, charity workers, shop workers or hotel workers. Workers the length and breadth of the land would see their income tax rise.

Jackie Baillie (Labour, Dumbarton)

Would the cabinet secretary reflect on the fact that teachers are doing their own photocopying and buying jotters for the classroom because there are no resources in our classrooms? They absolutely understand why we are proposing to increase income tax by 1p.

Does the cabinet secretary welcome the rebate that we propose that would help to protect people who are on the very lowest incomes?

John Swinney (Scottish National Party, Perthshire North)

I want to say to teachers and public service workers the length and breadth of the country, who have had to endure pay constraints because of the austerity programme of the UK Government, that I value the sacrifices that they have made, and that the last thing that I am going to do is put up their taxes.

Jackie Baillie just raised the proposed rebate to mitigate the effects of the tax rise. The immediate conclusion to draw from that announcement of a proposed rebate is that there is recognition that the tax rise is damaging to the incomes of low-paid workers. There are also the legislative and practical issues that would need to be overcome—and quickly—to make that concept a reality from April this year. [Interruption.]

Let us go through the detail. Labour will need to demonstrate clearly the legal basis under which it believes that such a payment can be made. If it is—[Interruption.]

Tricia Marwick (None, Mid Fife and Glenrothes)

Order. Let us hear the Deputy First Minister.

John Swinney (Scottish National Party, Perthshire North)

I am only helpfully going to dismantle Labour’s proposals, so they should be quiet and listen.

If the rebate is a tax relief, it is outside the powers of the Scottish Parliament in relation to income tax, as conferred by the Scotland Act 2012. If it is a social security payment, that is outside the competence of the Parliament, as defined in the original Scotland Act 1998.

Further evidence that the proposal is not properly thought through is provided by the lack of clarity about how it would be administered and, in particular, how it could be done within the £75 million that has been allocated for the proposal by Labour. An estimated 1 million taxpayers—workers and pensioners—could be eligible for the £100 rebate, which would cost £100 million. That is more than Labour has budgeted for the rebate, which does not even meet the needs of individuals within our society.

The second problem is that on top of that would be the costs of setting up and operating administrative systems by 32 local authorities across Scotland. We know already that it costs local authorities many millions of pounds to administer help with council tax bills, for which authorities already have a lot of information about the circumstances of claimants.

Thirdly, the rebate payment is likely for tax purposes to be counted as income, and so those who receive it would be liable to pay tax on it. It does not seem to me to be too much to expect that those who propose policies of this kind have at least considered those issues, but there seems to be little evidence that that has happened.

The only conclusion we can draw is that it is unlikely that anyone would receive the rebate on the basis of the proposition that Labour has offered to the people of this country.

Jackie Baillie (Labour, Dumbarton)

Mr Swinney’s speech is very reminiscent of what we heard from his back benchers yesterday, which was all about detail—fine aspects of detail. [Interruption.]

Tricia Marwick (None, Mid Fife and Glenrothes)

Order. Let us hear Ms Baillie.

Jackie Baillie (Labour, Dumbarton)

Let me say to John Swinney that it is, to be frank, an excuse for not addressing the question of principle. I want to know what he thinks about the principle of what we are proposing, because that, politically, is important.

John Swinney (Scottish National Party, Perthshire North)

That was a very revealing intervention, because the detail matters. On 1 April, a citizen of this country who was going to have their tax raised by Labour—but who will not have it raised by the SNP—would have the right to expect that what is being promised by Labour can actually be delivered. What Jackie Baillie must do in her speech today is explain how the legal, practical and operational issues that I have raised will somehow be overcome by what she has written on the back of a fag packet.

This Government will freeze income tax, and we will deliver a pay rise to around 50,000 of the lowest-paid workers in Scotland. The uprating of the living wage, its extension to social care workers and an uplift of £400 for people who are covered by public sector pay policy who earn £22,000 or less will see tens of thousands people being better off because of this budget.

That is the difference between the SNP and Labour. We want to give the lowest paid a pay rise; Labour wants to give them a tax rise. [Applause.]

Lewis Macdonald (Labour, North East Scotland)

I am sorry that Mr Swinney was, I understand, too busy to come out of the Parliament today to talk to the local government workers who were lobbying outside it. As he has reiterated that he has set his face against any increase in tax, what is his message to the 16,000 local government workers who are liable to lose their jobs as a result of £500 million of cuts in the coming financial year?

John Swinney (Scottish National Party, Perthshire North)

I say to those individuals that the Scottish National Party is determined to protect their incomes, not punish them with a tax rise that the Labour Party has come out with.

Neil Findlay (Lothian) (Lab) rose—

No afternoon would be complete without Mr Findlay.

Neil Findlay (Labour, Lothian)

It is fairly simple. How can the Government protect people’s income if they do not have a job? [Interruption.]

Tricia Marwick (None, Mid Fife and Glenrothes)

Let us hear the Deputy First Minister. [Interruption.] Enough, Mr Findlay!

John Swinney (Scottish National Party, Perthshire North)

The Government has given public sector workers the guarantee of no compulsory redundancies. That is what we have delivered for the people of this country.

The budget reaffirms our commitment to deliver inclusive growth through investment in education and skills. Almost £5 billion is invested annually in delivering school education, and average expenditure per pupil is higher in Scotland than in England. The health budget in Scotland will reach over £13 billion. We will protect the budget for colleges in Scotland and ensure that higher education spending is over £1 billion in 2016-17.

The Scottish Government is investing £250 million in supporting the integration of health and social care services at local level. That is the biggest reform in how we deliver health and social care services since 1948. That money is designed to pay the living wage to social care workers in our country, which I thought the Labour Party would have welcomed, and which I thought its local authority leaders would embrace and think is a good idea. [Interruption.]

Tricia Marwick (None, Mid Fife and Glenrothes)

Order.

John Swinney (Scottish National Party, Perthshire North)

What have we had? We have had obfuscation from the Labour Party and complaints about the SNP Government doing the right thing to protect people on low incomes in our society. We want to ensure that the health and social care reforms bring together those important services to expand the social care that is available to members of the public, to deal with the financial pressures that are felt across the system, and to ensure that workers are able to command the living wage. Those are the SNP Government’s priorities on health and social care.

As well as doing that, we will maintain 1,000 additional police officers on the streets of Scotland and protect the front-line policing budget in real terms next year. With a further £55 million being provided to support a new phase of change and transformation, we will ensure that police services meet the needs of the people of Scotland.

In a time of austerity, we will inject resources to protect household incomes from the welfare changes that the United Kingdom Government has undertaken.

Richard Simpson (Labour, Mid Scotland and Fife)

Will the Deputy First Minister take an intervention?

Tricia Marwick (None, Mid Fife and Glenrothes)

I am sorry, but the Deputy First Minister is winding up.

John Swinney (Scottish National Party, Perthshire North)

The investment that we are making in the Scottish welfare fund is £38 million, and there is £343 million for council tax reduction and £35 million to ensure that nobody pays the bedroom tax in Scotland. That is on top of the commitments to providing free school meals for our youngest citizens and free personal care for our most elderly citizens.

The budget meets the needs and expectations of the people of Scotland. It confronts austerity, protects people and their household incomes, stands in the face of a rise in people’s tax by the Labour Party; and delivers for the people of this country.

I move,

That the Parliament agrees to the general principles of the Budget (Scotland) (No.5) Bill.

Jackie Baillie (Labour, Dumbarton)

Politics is all about choices, and the SNP today has to make its choice. The budget before us is an austerity budget and so far it is clear that John Swinney has chosen to pass austerity on, rather than break from it.

It does not need to be that way. There is a real opportunity and a chance to do things differently. The SNP can make different choices and our amendment shows the way. We have new powers now, and new powers are coming. I ask the SNP to work with us to use those new powers to invest in our children and in Scotland’s future, and to keep the promise that it has made to the Scottish people time after time: that more powers will mean the chance to do things differently and to make fewer cuts.

The SNP believed in that during the general election when it set out plans to end austerity that it wanted an incoming UK Government to adopt. What has changed since last May? Let me tell the Government. You now have the power to do that for Scotland. You can deliver real change right now.

Mark McDonald (Scottish National Party, Aberdeen Donside)

Will the member give way?

Jackie Baillie (Labour, Dumbarton)

In a minute. This is about our future. I am ambitious for Scotland: I want a growing economy, and I want our young people to do better than the generation that went before them, with better skills for the jobs of tomorrow in the industries of the future.

However, you do not get that without investing in your people and specifically in their education and skills. Investing in education is one of the most significant ways of growing our economy and we have a lot of catching up to do. Take a look at what has happened in education over the past nine years. There are 4,000 fewer teachers in our classrooms and 152,000 fewer students in our colleges, classroom assistants have gone and not enough young people are achieving their potential. What a waste.

Mark McDonald (Scottish National Party, Aberdeen Donside)

Will the member give way?

Kevin Stewart (Scottish National Party, Aberdeen Central)

Will the member take an intervention?

Jackie Baillie (Labour, Dumbarton)

I will take an intervention from Mark McDonald.

Mark McDonald (Scottish National Party, Aberdeen Donside)

Jackie Baillie asked what has changed since May. In the Finance Committee’s report on the budget—[Interruption.]

Tricia Marwick (None, Mid Fife and Glenrothes)

Order.

Mark McDonald (Scottish National Party, Aberdeen Donside)

Wait for it. Paragraph 27 of the Finance Committee’s report states:

“The Committee supports the Scottish Government’s proposal to set SRIT at 10p for 2016-17.”

Jackie Baillie is a member of that committee and that recommendation was agreed unanimously, so I ask her: what has changed since Friday?

Jackie Baillie (Labour, Dumbarton)

I am sure that Mark McDonald, if he had been paying attention, would have realised that I was not at the meeting on Friday.

Members: Oh!

Tricia Marwick (None, Mid Fife and Glenrothes)

Order.

Jackie Baillie (Labour, Dumbarton)

Perhaps—[Interruption.]

Tricia Marwick (None, Mid Fife and Glenrothes)

Order, order. Let us hear Ms Baillie.

Jackie Baillie (Labour, Dumbarton)

Perhaps Mark McDonald—[Interruption.]

Tricia Marwick (None, Mid Fife and Glenrothes)

Order! Let us hear Ms Baillie.

Jackie Baillie (Labour, Dumbarton)

Thank you, Presiding Officer. Mark McDonald might want to get his glasses tested.

Education spending on the SNP’s watch has fallen by 8 per cent for pre-school, 11 per cent for primary school and 4 per cent for secondary school. Put simply, that is £561 less per head being spent on our school children. That is not a picture of a Government that is investing in our economy or in our future. The SNP has cut the central education budget by £130 million and it wants to cut the local government budget by at least £350 million. As education is local government’s biggest budget, it is inevitable that there will be more cuts to come.

Make no mistake: the big losers in John Swinney’s budget are the local communities, schools and public services that people value. The budget cut to local government is hundreds of millions of pounds. The UK Government has cut the Scottish Government’s budget, but John Swinney has taken that cut and doubled it before passing it on to local government. That is austerity on stilts and it is John Swinney’s choice to do that.

We should not worry, however; as the First Minister told us, it is all simply reprofiling. When is a cut not a cut? When it is reprofiling, of course. Members should expect to see that word used quite often in future.

The share of local government spending is down to 30 per cent, which is a further drop of 1.7 per cent in comparison with last year. Gone is the concordat and mutual respect; gone are the warm smiles and the handshakes. Now it is all threats and draconian sanctions, and a complete disregard for local democracy. The temperature in relations is near freezing. When I am told by John Swinney that he has been very generous and fair to local government—

John Swinney (Scottish National Party, Perthshire North)

Will the member give way?

Jackie Baillie (Labour, Dumbarton)

I ask the member to listen to the point first, then he can respond to it.

I point to the 40,000 fewer public sector workers, with the GMB estimating that at least 8,000 more will go and the Convention of Scottish Local Authorities suggesting that it could be 15,000. If this was a private sector closure, John Swinney would have MSPs on their feet in the chamber demanding that task forces be set up. Where is the task force to save local services and jobs from John Swinney’s cuts?

John Swinney (Scottish National Party, Perthshire North)

I point out to Jackie Baillie that employment in Scotland is at its highest level. Secondly, Jackie Baillie knows that there are three elements to the local government package that I have required it to sign up to—the council tax freeze, the integration of health and social care and the protection of teacher numbers. Which one of those does Jackie Baillie object to?

Jackie Baillie (Labour, Dumbarton)

John Swinney threatens the lot. [Interruption.] Can I also say to him—

Members: Answer the question.

I will, if members are silent.

Tricia Marwick (None, Mid Fife and Glenrothes)

Order. Let us hear Ms Baillie.

Jackie Baillie (Labour, Dumbarton)

I did not hear a denial that 40,000 public sector workers have lost their jobs. The workers outside who are protesting for their jobs and their communities are looking to us in the chamber. Where were the SNP ministers or back benchers? John Swinney would not even meet the trade unions to consider the impact of the cuts.

Kevin Stewart (Scottish National Party, Aberdeen Central)

Will Jackie Baillie take an intervention?

Jackie Baillie (Labour, Dumbarton)

Let me touch on the living wage for care workers—something that Labour members have been demanding for some time now, and that Labour councils such as Renfrewshire Council have been delivering and leading the way on.

Kevin Stewart (Scottish National Party, Aberdeen Central)

Will Jackie Baillie take an intervention?

Tricia Marwick (None, Mid Fife and Glenrothes)

I do not think that Ms Baillie is giving way, Mr Stewart.

Jackie Baillie (Labour, Dumbarton)

I ask John Swinney whether it is fair, in all honesty, to deliver a living wage for workers that is paid for by sacking thousands of their colleagues. Many of us joined the trade unionists from the GMB, Unite and Unison and the councillors from across Scotland who are outside the Parliament today protesting about the cuts to local government, but they have done more than simply protest. They have been positive in offering alternatives and trying to find solutions. Unite has suggested a debt amnesty and Unison has suggested changing how councils borrow, both of which would realise savings. The GMB has worked alongside local councils to protect services. All of them care about the future of their communities and they know that the cuts to come in years 2 and 3 will potentially be even worse than this year’s. No wonder John Swinney did not want to do a spending review and has hidden the cuts to come.

It is time for grown-up politics. It is time to choose.

John Swinney (Scottish National Party, Perthshire North)

Will Jackie Baillie give way?

Jackie Baillie (Labour, Dumbarton)

Rory Mair, the outgoing chief executive of COSLA, said:

“If you self-deny the ability to raise more money and you decide that the way to deal with a downturn in resources is to cut, however you dress it up, that’s an austerity budget.”

Too true.

John Swinney (Scottish National Party, Perthshire North)

Will Jackie Baillie give way?

Tricia Marwick (None, Mid Fife and Glenrothes)

Ms Baillie is not giving way, Mr Swinney.

Jackie Baillie (Labour, Dumbarton)

Given the choice between using our powers and making cuts to our children’s future and our country’s future, we choose to use our powers. Scottish Labour would use the tax system in a fair way, raising the Scottish rate of income tax by 1p to avoid making cuts to local schools and local communities.

Income tax is by its nature progressive. An army of experts tell us that, and even John Swinney has said:

“Clearly, people on higher incomes will pay comparatively more than people on lower incomes.”—[Official Report, Finance Committee, 13 January 2016; c 40.]

Those are his words, so there we go. However, with the proposed rebate of £100 to those taxpayers who earn between the £10,800 threshold and £20,000, we would make it even fairer and even more progressive.

I have heard SNP MSPs who are opposed to increasing tax in principle pretend that this is about detail, and I heard that from the cabinet secretary as well. It is really about the decision.

John Swinney (Scottish National Party, Perthshire North)

Will Jackie Baillie give way?

Jackie Baillie (Labour, Dumbarton)

I do not have time.

Tricia Marwick (None, Mid Fife and Glenrothes)

Ms Baillie is in her last 30 seconds.

Jackie Baillie (Labour, Dumbarton)

We have done the detail. Leaders in councils—

John Swinney (Scottish National Party, Perthshire North)

There was no answer on the detail. [Interruption.]

Jackie Baillie (Labour, Dumbarton)

I am happy to share and discuss the detail with John Swinney, but let me say to him—[Interruption.] Presiding Officer—

Tricia Marwick (None, Mid Fife and Glenrothes)

It is time to wind up, Ms Baillie.

Jackie Baillie (Labour, Dumbarton)

Leaders of councils across Scotland, which already make payments, have made it clear that they are ready, willing and able to do this, so the Government should stop pretending that it is too difficult.

It is not too late for the SNP. We could work together to end Tory austerity in Scotland—the SNP used to want to do that—and invest in our children, our economy and our future. I say to John Swinney that he should not persist with the cuts. For all his noise, he knows how painful those cuts are and he knows that he does not have to do that. Let us use the powers that we have, because faced with a choice of using our powers to invest in the future of Scotland or continuing Tory austerity, which is exactly what he is doing, there is no contest.

Tricia Marwick (None, Mid Fife and Glenrothes)

You need to close, Ms Baillie.

Jackie Baillie (Labour, Dumbarton)

We would choose to use our powers.

I move amendment S4M-15522.1, to insert at end:

“, and, in so doing, believes that the Scottish rate of income tax should be set at 11p for 2016-17, 1p higher than the UK rate set by the Chancellor of the Exchequer”.

Kenneth Gibson (Scottish National Party, Cunninghame North)

It is with pleasure that I speak on behalf of the Finance Committee in this stage 1 debate on the Budget (Scotland) (No 5) Bill for 2016-17 and to our draft budget report, which was published last Friday.

Scrutiny of the draft budget always works to a tight and demanding schedule. This year’s timetable was even more challenging than usual as the Scottish Government had to await publication of the UK Government’s spending review in late November 2015 before it introduced its budgetary proposals. I would like to thank all those who contributed to our scrutiny, particularly given the challenging circumstances.

As most members are aware, we approach budget scrutiny on the basis of four principles: affordability, which is the wider picture of revenue and expenditure and whether they are appropriately balanced; prioritisation, which is a coherent and justifiable division between sectors and programmes; value for money, which is the extent to which public bodies are spending their allocations well and achieving outcomes; and budget processes, which is the integration between public service planning and performance and financial management.

This year, we concentrated our scrutiny on affordability and budget processes. Historically, budget scrutiny has focused almost entirely on the Government’s spending plans, with little consideration of taxation. However, the devolution of some tax powers, along with the expectation of more to come, fundamentally changes the process and caused us to reassess it. Last year, we considered in detail the land and buildings transaction tax and landfill tax; this year, a key element of our scrutiny was on the Scottish rate of income tax.

Subject committees considered Government spending plans in their areas and we recommended that they examine the extent to which public bodies are adopting a priority-based budgeting approach to deliver the outcomes set out in the national performance framework. The Finance Committee welcomes the work of the subject committees in making the shift towards a more outcomes-based approach. I thank them for their helpful contribution to our scrutiny process.

To enable us to hit the ground running when the draft budget was published, we issued separate calls for written evidence on, in addition to taxation, the work of the Scottish Futures Trust and progress in delivering preventative spending. I thank all who submitted evidence.

Given the new tax powers, for the first time we questioned the Deputy First Minister over two sessions. The first session considered the Government’s tax proposals in detail; we then scrutinised its spending proposals at an external meeting in Pitlochry. That worked well and we will consider the need for any further changes to budget scrutiny as part of our legacy report.

In Pitlochry, we also held workshops with representatives of local businesses, voluntary organisations and public bodies, hearing first-hand about the impact of public spending on their community and how spending should be prioritised. The key issues raised included flood prevention, access to high-speed broadband, transport, housing and community empowerment. Nevertheless, given the topicality and importance of issues relating to taxation, I intend to largely concentrate on those, although I will also briefly touch on the work of the Scottish Futures Trust and on delivering the prevention agenda. Other members will wish to discuss the Government’s spending priorities and I look forward to hearing from them.

Turning first to affordability, the committee considered the need for a balanced budget, with expenditure being no greater than revenue. The draft budget proposes to apply a 10 pence Scottish rate of income tax, meaning that Scottish taxpayers will continue to pay the same rate of income tax as those in the rest of the UK.

To inform our consideration of the issue, we held several oral evidence sessions during the autumn. One or two witnesses favoured a reduced rate of SRIT on the basis that that would act as a stimulus to the wider economy, boosting jobs and growth; others advocated an increased rate on the basis that higher revenues could be used to reduce inequalities. However, a clear majority of responses supported the maintenance of the 10p rate for 2016-17, citing factors such as the complexity for employers, the mobility of labour, the economy’s on-going but incomplete recovery from recession, the impact on our workforce, which has endured below-inflation pay rises in recent years, and the blunt nature of the power.

Having considered the matter in detail in our report, the committee unanimously supported the Government’s proposal to set the Scottish rate of income tax at 10p for 2016-17. Nevertheless, we heard some innovative proposals for changes to taxation going forward, and recommended a wide-ranging debate across Scotland on taxation policy in anticipation of expected new financial powers from April 2017.

To inform such a debate, one of our key recommendations is that future decisions on taxation policy must be informed by behavioural analysis. Expert witnesses explained how taxpayers could be expected to change their behaviour in response to tax changes. Evidence from around the world suggests that higher rates of income tax are likely to lead to behaviours that impact negatively on tax revenues, including reductions in labour supply, tax avoidance and migration. Those behavioural responses are particularly important in relation to high earners, who are more likely to have the means, mobility and motivation to change their behaviour in response to tax changes. Professor David Bell told us that the highest 10 per cent of taxpayers pay more than half of income tax revenues, while the top 1 per cent contributes around a fifth. He estimated that there are around 11,000 additional-rate taxpayers in Scotland. As such a large proportion of tax revenue depends on a relatively small number of taxpayers, the committee was clear that it is imperative that the potential impact of behavioural responses on tax revenues is assessed before changes to taxation policy are made.

Ultimately, the intention underlying the devolution of tax powers is that the Scottish Parliament will be responsible for raising more of the money that it spends and thus that it will be more accountable to the electorate. Nevertheless, a large part of its income will continue to be dependent on the block grant and, as members know, the mechanism by which it will be reduced to compensate for devolved tax powers is of supreme importance to Scotland’s future financial wellbeing. We have consistently raised concerns about the impact of relative population growth on the indexation of the block grant adjustment. We therefore welcome the fact that the Deputy First Minister supports the indexed deduction per capita method and we recommend that that method is agreed in the fiscal framework that will underpin the devolution settlement.

Members will not need reminding that time is of the essence in agreeing the framework if the Parliament is to scrutinise it prior to dissolution. We look forward to questioning the Deputy First Minister and the Chief Secretary to the Treasury on the framework in the coming weeks to consider whether it meets the criteria agreed by the Smith commission and, importantly, whether it is fair to Scotland and to the rest of the UK and meets the no detriment principle. The Finance Committee has consistently raised concerns about the current lack of transparency in relation to block grant adjustments arising from the devolution of financial powers and we believe that full transparency is an essential element in securing public confidence in the process. It is therefore imperative that the fiscal framework contains detailed explanations of how the block grant will be adjusted in 2016-17 and beyond.

Regarding taxes that are already devolved, we have closely followed developments in the first year of their operation, particularly with regard to the land and buildings transaction tax. Stakeholders raised concerns that LBTT had a negative effect on sales at the higher end of the property market. Although it is not possible to fully assess LBTT’s impact before outturn figures for the full year are available, the latest indications are that high-value sales are returning to previous levels, while according to Your Move and Acadata, the middle and lower tiers of the market have been given a new lease of life by the Government’s approach. On that basis, we are supportive of the proposal to maintain the current rates and bands for residential LBTT. However, we have also recommended that the Government conducts and publishes a review of LBTT once the outturn figures for its first year of operation become available. That will doubtless assist the Parliament in its scrutiny of next year’s draft budget proposals regarding LBTT.

Members will be aware that the committee takes a keen interest in the Scottish Fiscal Commission’s work. Indeed, stage 2 proceedings on the bill that puts the commission on a statutory basis will take place next week. I look forward to discussing the issues raised in our stage 1 report then, so I do not intend to discuss the commission at length today, except to reiterate our recommendation that greater clarity is needed on the role of the commission and how it works in practice, particularly regarding whether it is asked to agree the forecasting methodology prior to publication of the official forecasts and what happens if it does not do so.

Regarding the Scottish Futures Trust, the committee invited written evidence on how successful it is in achieving its aim,

“to improve the efficiency and effectiveness of infrastructure investment in Scotland by working collaboratively with public bodies and industry, leading to better value for money and ... improved public services.”

The overwhelming majority of responses were positive and indicated a high level of regard for the SFT, its staff and their professionalism and collaborative approach. Suggestions on how the SFT could further improve its work were also made, and we look forward to hearing the SFT’s views on those suggestions in due course.

Staying with capital investment, an issue around which on-going concerns have been raised relates to the impact of the European system of accounts 2010 regulations, which have led to certain non-profit-distributing projects being reclassified as public sector spending. We note that £398 million was allocated from the capital departmental expenditure limit budget in 2016-17 to cover NPD projects, and we believe that it is vital that full transparency is provided on the impact of reclassification, particularly where it resulted in delays to other planned capital investment projects.

That is no doubt relevant to the fiscal framework negotiations that relate to additional borrowing powers. We would welcome an update from the Deputy First Minister in that regard.

The committee continues to scrutinise the Government’s commitment to

“a decisive shift towards preventative spending.”

We have long taken an interest in the subject. Although there is evidence of progress, the committee remains frustrated by the lack of evidence of a large-scale shift towards prevention. We received more than 40 responses to our call for evidence on the topic, several of which highlighted perceived barriers, including a lack of shared ownership among public sector partners.

It is clear that if a decisive shift towards prevention does not take place, public bodies will face growing demands for services against a backdrop of finite and perhaps diminishing resources. The committee therefore agreed to take further evidence on prevention before reporting its conclusions by the end of this parliamentary session.

As I said, the committee’s budget scrutiny focused on affordability and budget processes, but many other topics were covered in our report, which I am sure that members will raise in the debate. I hope that I have given a flavour of the increasingly broad range of subjects that the Finance Committee considers as part of our draft budget scrutiny, and I look forward to hearing from members.

Murdo Fraser (Conservative, Mid Scotland and Fife)

The Deputy First Minister is fond of telling us the extent to which he is a victim of so-called Tory austerity from Westminster, so I thought that it might be useful to ask the Scottish Parliament information centre where the total Scottish Government budget for 2016-17 stands in relation to previous years. SPICe told me that the total budget for 2016-17 will be higher in real terms than the budget in every year of devolution from 1999 to 2007. It will be higher than the budget in each of the years 2011-12, 2012-13 and 2013-14. In cash terms, it will be nearly £400 million higher than the current year’s budget.

We know that the Scottish Government will always complain that it does not have enough money, and we know that it will always put the blame for that at Westminster’s door. The difference in this budget is that the finance secretary could have chosen to increase taxation, if he wanted to, and he chose not to do so.

Those of us in the Parliament who have long memories will remember the Scottish Parliament election in 1999, when a fresh-faced Mr Swinney was the architect of the penny for Scotland campaign. It is something of an irony that, 17 years later, that very campaign has been taken up by Labour and the Liberal Democrats and it is Mr Swinney who is holding the line against increases in income tax.

Kevin Stewart (Scottish National Party, Aberdeen Central)

Will the member take an intervention?

Murdo Fraser (Conservative, Mid Scotland and Fife)

No, I will not.

Kevin Stewart (Scottish National Party, Aberdeen Central)

No?

Elaine Smith (Labour, Coatbridge and Chryston)

Mr Stewart, the member said no.

Murdo Fraser (Conservative, Mid Scotland and Fife)

Mr Swinney is right to hold the line against increases in income tax. As we have often said, the Scottish Conservatives believe that people in Scotland should not be taxed more highly than people in the rest of the United Kingdom. Sometimes that has been a lonely message to put out, but no more. It gladdens my Tory heart to hear those self-proclaimed social democrats and political progressives on the SNP benches arguing so vigorously and passionately against increases in taxation.

Conservative members are happy to stand shoulder to shoulder with the SNP in holding the line against the tax grabbers on the Labour and Liberal Democrat benches, who would clobber Scottish families. To coin a phrase, we are happy to be better together with the SNP on this issue.

However, the SNP can hardly complain about Tory austerity when it had the choice to raise taxation. [Interruption.]

The Deputy Presiding Officer

Order, please.

Murdo Fraser (Conservative, Mid Scotland and Fife)

What all that means is that in the coming election, for those who are unionist voters and for those who voted no in the referendum, there is now only one party that will protect their pockets and household incomes, and that is the Scottish Conservatives.

Willie Rennie (Liberal Democrat, Mid Scotland and Fife)

Will the member give way?

Murdo Fraser (Conservative, Mid Scotland and Fife)

I will of course give way to Mr Rennie, tax grabber.

Willie Rennie (Liberal Democrat, Mid Scotland and Fife)

I have studied the Conservative proposals for the budget, which comprise £189 million in tax cuts and spending increases, but I can see only £50 million in cuts—that involves a cut to the bus pass scheme. Where would the rest of the money come from? How would Mr Fraser pay for his policies?

Murdo Fraser (Conservative, Mid Scotland and Fife)

If Mr Rennie had studied our proposals in detail, he would have seen that we challenge some of the assumptions in Mr Swinney’s budget about the revenue that is likely to be raised. For example, we know that, according to the Office for Budget Responsibility, LBTT revenue is about £42 million behind his projected revenue. We think that some of his sums are wrong.

We would also make different choices. For example, as Mr Rennie well knows, we would introduce a graduate contribution. We have been clear about that. If Mr Rennie studies what we said in more detail, he will see that we have a package of proposals, and I will spell out in more detail why they are important.

We have determined that our priority should be the Scottish economy. A strong and vibrant economy is essential not just for the economic and social benefit of the people of Scotland but as a means of generating the tax income that the Scottish Government requires. That will be particularly important in the coming year and in subsequent years as a closer link between Scotland’s economic performance and the Scottish Government’s tax take is established.

With that in mind, we have proposed a number of changes to the budget—I am glad that Willie Rennie was paying attention to them. First, we have concerns about the increase in non-domestic rates. Partly, that involves the doubling of the large business supplement from 1.3 per cent to 2.6 per cent. Notwithstanding its title, that supplement will hit many relatively modest businesses, as it applies to properties with a rateable value of £35,000 or more, which include relatively modest shops in many Scottish high streets. The First Minister has told us that she wishes Scotland to become the most competitive part of the United Kingdom in which to do business. Unfortunately, having a rate that is double that payable south of the border flies in the face of that.

Perhaps more worrying are the proposals to change empty property relief and end the exemption for industrial property. The business community has expressed the strong view to us that that will be extremely damaging, that it could bring to a halt new speculative industrial development and that it might even lead to the demolition of 1 million square feet of empty factories. That is important because a vibrant, dynamic economy needs a stock of empty properties for new and expanding businesses to move into. We share the business community’s concerns about the adverse impact that those changes will have on the potential for economic growth and on our ability to attract inward investment.

We have concerns about LBTT, which I have spelled out, and we believe that the threshold for the 10 per cent rate should be increased. We maintain the opposition that we have had in recent years to the cuts in college funding, which have resulted in a decrease in college places of 153,000, which particularly impacts on people such as women who are trying to get back into the workforce.

Our package of proposals would put the Scottish economy first and foremost, as we are always conscious that a growing economy is necessary to widen the tax take. We will abstain on stage 1 of the bill tonight to allow further discussions to take place. However, we are clear that this party will not support proposals to increase taxation and, if necessary, we shall be happy to go into the coming election as the only party defending hard-pressed Scottish households that feel that they are already contributing quite enough to Government coffers. That is the distinctive Conservative message.

The Deputy Presiding Officer

We come to the open debate. At the moment, I can allow speeches of six minutes, but that might have to change, as we are tight for time.

Before I call the first speaker, I remind everyone that the code of conduct dictates that members should not turn their backs on the chair. I ask members to bear that in mind for the rest of the debate.

Joan McAlpine (Scottish National Party, South Scotland)

I welcome the budget and highlight the £250 million health and social care package. It bears particular scrutiny as it represents the greatest shift in health spending that we have seen since 1948 and it puts our talk about preventative agendas into practice.

We would think that there would be a consensus in the chamber on that extra money for health and social care, particularly since Mr Swinney has specifically said that it should go to provide a living wage for care workers. That issue has been raised repeatedly in the chamber, because providing the living wage for care workers also in turn tackles delayed discharges, delivers improved quality of care, speeds up the delivery of care packages and increases the number of care packages.

Of course, increasing wages to care workers improves job satisfaction rates, which reduces churn in the sector and ensures that there are fewer staff shortages. That leads to continuity in care packages, which is another issue that has been raised repeatedly in the chamber, as it is important that people who receive care packages in the community see the same people.

That is all very good news, but it is being rejected by Labour councils, backed by their political allies in the Parliament. It is astounding that they would walk away from the budget, given the number of times that Labour has raised the issues of health and social care and of the living wage in that sector.

Jackie Baillie (Labour, Dumbarton)

Will the member give way?

Joan McAlpine (Scottish National Party, South Scotland)

I will finish this point. Two years ago, Neil Findlay lodged a motion about the results of Unison’s staff survey, which were published in its document “Scotland—It’s time to care”. The motion said that resources should be provided to ensure the payment of the Scottish living wage, which we have done.

The Economy, Energy and Tourism Committee recently completed an investigation into low wages.

Drew Smith (Labour, Glasgow)

Will the member give way?

Joan McAlpine (Scottish National Party, South Scotland)

In that investigation, Labour members of the committee repeatedly asked us to introduce the living wage in the care sector.

I will give way.

The Deputy Presiding Officer

Ms McAlpine, who are you giving way to?

Joan McAlpine (Scottish National Party, South Scotland)

I will give way to Mr Smith, who is on his feet.

Drew Smith (Labour, Glasgow)

Given that Ms McAlpine quoted what Unison rightly had to say about the living wage for social care workers, does she agree with what Unison has said about the scale of public sector cuts and job losses that will come as a result of the budget? Why is there no task force for the tens of thousands of public sector workers who will be put out of a job by this SNP budget?

Joan McAlpine (Scottish National Party, South Scotland)

When we look in detail at the budget, we can see that it is absolutely despicable that Labour councils around the country are threatening to sack workers. We are talking about a 12.5 per cent cut to this Government’s budget under the Tories. Councils here have been relatively protected, as Mr Swinney has said, compared with councils in England. [Interruption.]

The Deputy Presiding Officer

Order, please.

Joan McAlpine (Scottish National Party, South Scotland)

The package represents a 1 per cent cut. If the Labour bosses of councils do not have the imagination and the ability to manage that in the same way as Mr Swinney has managed the budget of the country, they are doing a disservice to the workers they claim to represent.

Jackie Baillie (Labour, Dumbarton)

Will the member take an intervention?

Lesley Brennan (Labour, North East Scotland)

Will the member take an intervention?

Joan McAlpine (Scottish National Party, South Scotland)

I will.

The Deputy Presiding Officer

Jackie Baillie.

Jackie Baillie (Labour, Dumbarton)

Will Joan McAlpine tell us what SNP-controlled Dundee City Council is doing in issuing notices to 6,000 employees to ask whether they will take redundancy?

Joan McAlpine (Scottish National Party, South Scotland)

My understanding is that that is completely misleading—it misinterprets what is actually happening.

Labour has pinned its principles to the mast on social care repeatedly in the chamber. It has raised the issue of the living wage for healthcare workers and it has raised the issue of delayed discharges. It has pinned its principles to the mast on that. Now Labour’s principles are under water, because its members have a chance to implement what they say they want, but they are walking away. As far as I can see, they are making a last desperate attempt to hurt the SNP before the election. However, they are not hurting the SNP. The people they are really hurting are the long-term sick, the terminally ill, the frail elderly, the disabled and people stuck in hospital beds. They are the people who will be hurt if the £250 million social care package is not put in place because their Labour councils are walking away from it.

What is Labour’s message to care workers—the care workers to whom it is denying the living wage? Not only is it denying them the living wage, but it is now threatening to tax them. [Interruption.]

The Deputy Presiding Officer

Order, please.

Joan McAlpine (Scottish National Party, South Scotland)

As well as threatening to tax them, Labour is offering those low-wage workers—who are not going to get the living wage—a rebate, but we do not even know the legal status of the rebate. It would be a matter of going back to Labour councillors for means testing of the rebate.

Jenny Marra (Labour, North East Scotland)

Will the member give way?

Joan McAlpine (Scottish National Party, South Scotland)

No—I have already taken two interventions. I am sorry; I do not have time.

The Deputy Presiding Officer

The member is now closing.

Joan McAlpine (Scottish National Party, South Scotland)

People will have to go back to Labour councillors to claim their rebate—if it is legal and if it can be introduced. Of course, Labour members just love means testing, don’t they? [Interruption.]

The Deputy Presiding Officer

Ms McAlpine, could you draw to a close, please?

Joan McAlpine (Scottish National Party, South Scotland)

Somebody mentioned the trade unions. I remind members that the Trades Union Congress found that under the Tories real wages in Scotland have fallen by the equivalent of £1,500. That is the amount of money that we have saved people through the council tax freeze, which, week after week, Labour councillors continue to oppose.

The Deputy Presiding Officer

Ms McAlpine, you must close.

Joan McAlpine (Scottish National Party, South Scotland)

It is the SNP Government that is protecting workers in the home care service and everywhere else. It is a shame that Labour has lost—

The Deputy Presiding Officer

Close, please, Ms McAlpine.

Joan McAlpine (Scottish National Party, South Scotland)

—the tag of the workers’ party that it used to have.

The Deputy Presiding Officer

I remind members that, if they take more than six minutes, it is colleagues’ time that they are taking up, and I will have to reduce the time later.

Willie Rennie (Liberal Democrat, Mid Scotland and Fife)

This is the budget of many firsts. It is the first budget with substantial tax powers. It is the first budget without a fixed income. It is the first budget where we can increase Government spending. It is the first budget with costed alternative tax proposals on the table. It is the first budget where any pretence that councils have flexibility over their budgets has completely evaporated.

This is also the first year when John Swinney has been deprived of his well-worn and rather shabby songbook—the book of songs that he trots out on these occasions. “We value the relationship with our local authority partners”—he cannot say that any more; he has strong-armed them into submission with a triple whammy of fines worth £408 million. If Scotland’s 32 councils were to increase the council tax by just £1 each, they would face fines imposed by the SNP Government totalling £408 million. The historic concordat is simply history.

What else can John Swinney no longer sing? “We have a fixed budget”—he has flexibility now. “If only we had the powers”—he has the tax powers now. “This is a budget against austerity”—not if he uses the powers; he can do something about that if he does. His favourite—“These are Westminster cuts”—is gone, too. With a triple lock on councils to deny them any choice and his refusal to use the Parliament’s powers, he is imposing the kind of budget that he has previously condemned.

The people of Scotland will know that his refusal to act means that every single cut to public services to Scotland is a John Swinney cut. He cannot shirk that; he must accept it. He cannot point anywhere else any more. The £500 million cut to schools and council services is a John Swinney cut. The loss of 152,000 college places—John Swinney is responsible for that. The failure to invest to meet our climate change targets and fuel poverty targets, the cuts to police budgets and mental health services not being treated on an equal footing—this is John Swinney’s budget and he must accept the consequences of his decisions today.

The Liberal Democrats’ case is that the situation is so urgent that we must use the Calman powers that we have now rather than wait for the Smith powers that are due in two years. We recommend that we increase income tax by one penny to deliver £475 million of investment to repair the damage of SNP cuts to education and to make a transformational investment in education.

John Swinney rose—

If Mr Swinney getting to his feet, can he explain how he will protect the incomes—

John Swinney (Scottish National Party, Perthshire North)

I am more than happy to explain if Mr Rennie will give way.