Councils promised cash to freeze tax
SCOTLAND’S Finance Secretary announced record NHS funding of £16 billion and promised local authorities cash to freeze council tax as part of a Budget aimed at dealing with the impact of the Covid-19 pandemic.
Kate Forbes said her tax and spending plans for the coming year are part of an “exceptional response” to the “exceptional circumstances” the country is facing.
She said the pandemic has “shaken our society and economy to their core”, and her draft budget for 2021-22 aims to bring much-needed stability to ensure “our economy recovers and we protect those who have been hit the hardest”.
But opposition MSPs questioned whether sufficient cash is being allocated to local authorities.
Scottish Conservative finance spokesman Murdo Fraser said councils have been “underfunded” for years, while Scottish Labour interim leader Jackie Baillie said spending on local government “falls short of what is required”.
Scottish Greens co-leader Patrick Harvie insisted the plans do not provide for the “green recovery” needed from the pandemic.
Forbes has to win support for her Budget from at least one other party if it is to be approved.
The draft Scottish Budget will see the health service receive more than £16bn – with this figure including money to support the ongoing response to coronavirus as well as £145.3m to tackle drugs and alcohol.
There will also be £1.1bn for mental health services – a figure
Scottish LibDem leader Willie Rennie insisted is not enough.
Forbes promised councils will receive a total funding package amounting to £11.6bn for 2021-22.
The Finance Secretary promised £90m so local authorities do not have to increase council tax.
On income tax, Forbes pledged the amount at which people start to pay the starter, basic and higher bands will all rise by inflation – although the starting point for the top rate will be frozen at £150,000.