What can we expect from the Scottish Budget?
Shona Robison will set out the Government’s tax and spending plans in a speech at Holyrood on Tuesday.
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Your support makes all the difference.Deputy First Minister and Finance Secretary Shona Robison will deliver her first Scottish Budget on Tuesday amid much speculation over what will be included.
Possible plans to bring in a new rate of taxation for higher earners have sparked debate, while Ms Robison is also expected to outline plans on how a council tax freeze will be funded.
Here, the PA news agency takes a look at what to expect in the Scottish Budget.
– What can we expect on tax increases?
First Minister Humza Yousaf said during the SNP leadership election earlier this year that he was keen to explore increasing taxes for higher earners.
Reports suggest there will be a new income tax band for higher earners, but the University of Strathclyde’s Fraser of Allander Institute has warned tax increases will not be enough to plug funding gaps in Scotland’s finances.
The new bracket is rumoured to be 45% for those earning between £75,000 and £125,000 a year.
Prime Minister Rishi Sunak questioned the move, saying the Scottish Government “needs to explain why it’s choosing a different path which is one of higher tax for both people and businesses”.
– What action can we expect on the cost-of-living crisis?
Mr Yousaf said on Monday that funding will be announced to wipe school meal debt for thousands of families across Scotland.
In a letter to Scottish Sun editor Gill Smith, Mr Yousaf confirmed there will be a “one-off emergency fund” to help remove the impact of school meal debt.
The newspaper has been running a campaign to have the debt wiped.
Meanwhile, the Child Poverty Action Group has called for the Scottish child payment benefit to be increased from £25 per week to £30 per week.
Mr Yousaf said during the SNP leadership campaign he would like to do this.
A council tax freeze has already been announced by Mr Yousaf, with Ms Robison expected to set out how the move will be funded in her Budget statement.
– What cuts are expected?
The Scottish Government will inevitably have to make cuts to public spending.
While there have been no concrete calls from the Government that jobs will have to be cut, local government, Police Scotland and the Scottish Fire and Rescue Service have all announced they will have to slash jobs in order to make ends meet as well as cutting budgets.
Over the weekend, Ms Robison said the amount of money available to Scotland will be reduced as a result of real-term cuts by the UK Government.
She claimed the settlement is more than £700 million lower than if it had matched the increase in inflation over the last two years.
Ms Robison said the Scottish Government is operating with “one hand behind their back”.