Mackay: ‘Budget may be revisited’

Scotland’s finance secretary has said he may have to amend his budget if the UK government sets different tax rates.

The Scottish budget will be announced on 6 February, weeks before Chancellor Sajid Javid reveals his tax and spending plans.

Speaking on BBC Radio Scotland yesterday, Derek Mackay acknowledged he may have to return to the Scottish Parliament to make changes if there are significant differences between the tax rates.

“If there is a variance, then I can return to Parliament after the start of the financial year – having had the budget approved – to do revisions that Parliament can hold me to account for,” Mr Mackay said.

The finance secretary will have to write his budget without knowing the economic forecasts published alongside the UK’S version.

He said: “I’m making a judgment that going earlier to ensure local government and other public services have certainty is the right thing to do.” Waiting until after the UK government set its budget on 11 March would have left Scotland in a “calamitous position” of having to pass its spending plans with “unprecedented” speed, he said.

Although Mr Mackay said he would not “play politics” amid the row over the delayed UK Budget date, he repeated his suggestion it was “disrespectful to the established devolution arrangements”.

He said: “I have been absolutely right, the UK government is at it. They’re leaving it to the last possible minute to do their own budget and that has caused a terrible impact for us.”

Holyrood has to pass a rates resolution, setting out income tax rates for the Scottish bands, by the start of the new financial year. Failure to do this by 31 March could mean powers to collect the Scottish rate of income tax would be lost.