Seòmar agus comataidhean

The late UK budget means that I am not able to deliver the Scottish budget until January. The uncertainty and lack of engagement from the UK Government has also been very unhelpful as we try to anticipate the impact on our own budget.

Under the current arrangements, we are managing considerable challenges and volatility with limited powers. It is clear that we need greater fiscal flexibilities to support effective budget management, and I have urged the UK Government to work with us to provide that. Although the chancellor has not accepted a meeting, I expect to speak to the Chief Secretary to the Treasury before the budget, and I will continue to press Scotland’s case.

Again, the SFC fact sheet, which was released on 11 November, shows that, after accounting for deductions from taxable income, most Scottish taxpayers are expected to pay less income tax than they would in the rest of the UK in 2024-25 and 2025-26. Accounting for deductions such as pension contributions is required to reflect the tax that is actually paid by taxpayers.

The fact sheet demonstrates that our commitment to ensure that the majority pay less than elsewhere in the UK is being delivered. For the remainder of the session, we will maintain the commitment that more than half of Scottish taxpayers will pay less income tax than they do in the rest of the UK. [Interruption.]

First, I acknowledge something that Willie Rennie said. People are feeling the pressure of the cost of living crisis. They feel that their income is not going as far, given the cost of food, utility bills and their mortgages, all of which are putting pressure on household incomes. I recognise that, but the Government’s tax policies have raised important additional funding for public services.

As I said in an earlier answer, we set out in our tax strategy our position with regard to what we want to see going forward. Of course, we will have to see what next week’s UK Government budget brings, but we recognise the importance of the issue to people’s household incomes, and we have taken measures to help to sustain them. We will continue to do what we can in that spirit.

Since 2007, the Scottish Government has delivered five major A77 improvements, totalling £64 million, including the £29 million Maybole bypass. In addition, approximately £425,000 has already been budgeted for road safety work on the A77 this year. We are working with local people through the south-west roads focus group and the A77 campaign group to develop recommendations for further targeted improvements on the A77.

I am pleased that Carol Mochan recognises the Cabinet Secretary for Transport’s engagement with local people. The Government recognises the strategic importance of the A77 to Scotland’s economy. We value the critical link that it provides to the wider trunk road network and to the markets in the rest of the United Kingdom and Europe.

Making improvements to the A77 is one of the 45 recommendations that are included in the second strategic transport projects review, which was published in December 2022. The Government is committed to engaging with interested parties on strategic transport matters and supporting the users of the A77.

I know that the Cabinet Secretary for Transport will continue to listen to the views of local people.

On 13 January 2026, I will set out the Scottish budget and the spending review, which are being developed against the backdrop of a late and highly uncertain UK Government budget. I confirm that the budget will protect and build on the substantial investments that the Scottish Government has already delivered for the people of Scotland. We will continue to work with our partners across the public sector to provide additional certainty and to address any budget challenges, including on how we operate and collaborate on reforming public services to ensure that they are sustainable and people centred.

The Scottish Government welcomes the Scottish Fiscal Commission’s fact sheet. Its estimates of net median income in 2024-25 and 2025-26 show that a majority of taxpayers in Scotland are expected to pay less than taxpayers in the rest of the United Kingdom. That demonstrates that our commitment to ensure that the majority pay less than is paid elsewhere in the UK is being delivered.

The Scottish Government has a long history of working with local authorities and COSLA to ensure that council finances are sustainable. With our partners and local government, in the context of the recently agreed fiscal framework, we will continue to ensure that the budget challenges that are facing both spheres of government are properly understood. Despite a decade of UK Government austerity measures, the total local government finance settlement increased by almost 50 per cent between 2013-14 and 2025-26. The Scottish Government will continue to ensure that the people of Scotland receive the high-quality public services that they expect and deserve.

I wrote to the Chancellor of the Exchequer two weeks ago seeking an urgent meeting, and the First Minister hoped to meet the Prime Minister, but the UK Government has not agreed to those meetings. The mixed messages and speculation on what the UK Government may do in its budget have been unhelpful as we consider the implications for our own fiscal position.

When I met the Chief Secretary to the Treasury last month, I stressed the importance of the UK Government speaking to us about the impact of its plans on Scotland and our finances. I am very concerned that, yet again, Scotland will be treated as an afterthought.

First, revenues that are raised from tax are essential for public services. Of course, under the Tories’ plans, £1 billion would come out of public services because of tax cuts that cannot be afforded. We have set out our intentions for taxation in our tax strategy. The tax policy for 2026-27 will be announced in the budget on 13 January.