The Courier & Advertiser (Perth and Perthshire Edition)
Mackay’s budget open to compromise
Finance secretary’s door is open to constructive talks
The finance secretary has said his door is open to “constructive talks” to ensure his Scottish Budget will pass.
Derek Mackay said he recognised he would need to compromise as he is in a minority government, however he is confident that it will be approved.
Unveiling the Scottish Government’s 2018-19 draft budget on Thursday, Mr Mackay announced that councils will have an increase in “core funding” of £94 million – adding that if authorities increase council tax charges by the maximum of 3%, this would raise a further £77 million. He also ended the public sector pay freeze.
The Greens have said they could not support the budget as it stands because there is a “real terms cut in the local government revenue budget” but say they could do so if more money was allocated to councils.
However Mr Mackay insisted he had given local authorities a fair deal.
Speaking on a visit to Queen Elizabeth University Hospital in Glasgow yesterday, he said: “For local government I’ve given them a very fair settlement. They were forecasting a 3% reduction and that’s £300 million 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
“What I’m describing is I’ve protected their budgets, I’ve enhanced capital budgets for local authorities. FINANCE SECRETARY DEREK MACKAY
for capital, and if local authorities use their council tax powers up to 3% then they will have a real terms increase.”
Labour have raised concerns the pay rise does not apply to 243,000 local government workers as the budget states that matters relating to their pay and employment are delegated to councils.
Asked whether council workers would be the only public sector staff left without a pay rise if local authorities don’t raise council tax by 3%, Mr 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 3%.
“What I’m describing is I’ve protected their budgets, I’ve enhanced capital budgets for local authorities and if they use their powers they will have more money in real terms. And it’s in that fiscal environment that I do believe that they can engage constructively with their own workforce.”
The budget also introduced a new five band system of income tax that will leave those on a salary of £33,000 or above paying more, while health spending next year will increase by more than £400 million, taking the overall total to over £13 billion.
The Greens said they were not prepared to back the draft budget in its current state but there were elements they could work with the Government on.
Asked how much more the Greens would want for local government for the budget to be acceptable to them, MSP Andy Wightman said around £150 million.
During his visit Mr Mackay said he would be open to talks, adding: “I’m in a minority government, I have to compromise to get a budget through.”