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Harvie’s party offer votes to SNP.. for extra £150m in council funding
THE Scottish Greens have set a £150million increase in local council funding as the price tag for supporting Derek Mackay’s Budget at Holyrood.
Patrick Harvie’s party said yesterday that their six Green MSPs would lend their votes to the SNP minority government in the most important vote of the parliament, as Mackay signalled his willingness to compromise.
But the Greens’ local government spokesman Andy Wightman insisted there would have to be changes before January’s crucial vote.
Asked if they would support the Budget, Wightman said: “Not as it stands, because there is a real-terms cut in the local government budget.
“We want a real-terms increase and that would involve somewhere in the region of £150million, calculated from various figures.”
Wightman zoned in on the SNP’s small business bonus scheme as a way of finding the extra cash for councils.
He said: “It is a very flawed scheme with people getting tax breaks they don’t deserve.
“We can have discussions around the small business bonus scheme – about £100million coming out of non-domestic rate revenue, from short-term lets here in Edinburgh to the ruler of Dubai not paying tax in Invernesshire. There is a lot we can talk about.”
Finance Secretary Mackay used new tax powers, won by the referendum Vow, to raise the higher and top rates of tax by 1p to 41p and 46p in Thursday’s Budget, boosting funding for public services.
Taxes for Scotland’s highest earners will rise by £164million next year to help fund pay rises for public sector workers, modest tax cuts for lower earners and £400million extra for the NHS.
The plans mean the lowest earners in Scotland will pay less tax than their counterparts in the rest of the UK, but the most any taxpayer would gain is a cut of £20 a year.
Labour raised concerns that the proposed pay increase for public sector workers does not apply to 243,000 local government employees who are paid by councils. Local authorities claim they are being hammered in what was viewed as a shrewd tax-raising Budget from Mackay.
Cosla estimated that councils needed an additional £545million just to stand still, taking account of inflation and rising demand for services such as social care.
Mackay said yesterday his door is open to “constructive talks” with opposition parties and was confident his Budget will be approved.
Speaking on a visit to Queen Elizabeth University Hospital in Glasgow, he said: “For local government, I’ve given them a very fair settlement. They were forecasting a three per cent reduction and that’s £300million of a reduction, that’s not what I’m proposing.
“I’m proposing flat cash, that’s about the same amount of money with more for capital, and if local authorities use their council tax powers up to three per cent then they will have a real terms increase.”
Asked if local authorities don’t raise council tax by three per cent council workers, would be the only public sector workers left without a pay rise, Mackay said: “That would be up to local authorities. They have control over their pay policy and the council tax up to a limit cap of three per cent.”
He added: “Am I confident this Budget will pass? Yes, I am.”