Greens call for "more progressive approach to tax" before backing budget plan

Green MSPs will only back the minority SNP government's budget plans if ministers adopt a “more progressive approach” to taxation, Finance Secretary Derek Mackay has been told.

The votes of Holyrood's six Green MSPs were crucial in passing the Budget Bill last year, and with Mr Mackay currently preparing tax and spending plans for 2018-19 Scottish Green co-convener Patrick Harvie made clear an income tax increase for higher earners must be part of that.

Mr Harvie said any budget proposal in which MSPs, who have a salary of £61,778, did not end up paying more tax would be “inadequate”.

He spoke out as he addressed his party's Scottish conference in Edinburgh, telling activists there that they had been instrumental in bringing about changes in Scottish politics on issues ranging from fracking to smacking - with the Scottish Government now giving its support to a Green bill that will make Scotland the first part of the UK to outlaw the physical punishment of children.

Mr Harvie, a Glasgow MSP, also insisted the issue of public sector pay would be crucial in the forthcoming Scottish budget.

SNP ministers have already committed to ending the 1% pay cap on public sector workers - but Mr Harvie demanded they go further than this and give workers a pay rise above the rate of inflation, which currently stands at 3%.

Mr Harvie told the conference: “Public sector pay is going to be one of the most important issues in the budget discussions.

“There is now an unanswerable case for an above inflation pay settlement for people delivering public services. I think we can win that, I think we can achieve that.

“The Scottish Government has said they will lift the pay cap, that's a good start. But simply lifting the cap isn't enough, we need to recognise higher inflation means we now have to go above and beyond that figure, and it has to be fully funded.

“If the Scottish Government lifts the pay cap but doesn't provide the rest of the public sector with the resources that are necessary then it will make very little difference, so it has to be funded and it has to be above inflation.”

On the issue of taxation he said the core principles of the Greens' approach were “very, very clear”, stating: “We want to raise enough revenues to fund the public services and the investment that our country needs and we want to do it in a way that closes the inequality gap instead of hitting low earners in the pocket.

“That means we need a better approach to progressive taxation. We'll be absolutely advocating for that and I am really pleased movement is happening on that as well.”

First Minister Nicola Sturgeon has already signalled she wants a discussion on the “responsible and progressive” use of Holyrood's income tax powers.

And Mr Harvie said: “We need fairer, genuinely more progressive taxation and if I'm not paying more tax, if MSPs aren't paying more tax by the end of it I think that will be an inadequate settlement.

“We need to ensure that we protect low earners and ensure that those who genuinely can afford to pay more do so.

“So the message to Derek Mackay as he prepares his budget is very clear - if you want Green support these are the areas where you are going to listen and you are going to have to act.”

In his speech Mr Harvie welcomed that the Finance Secretary will not be cutting Air Passenger Duty this year, as the Scottish Government have previously pledged to do.

But he insisted there was “no substantive case” for reducing the levy on air travel, and said: “I want that policy not only paused but scrapped altogether.”

Mr Harvie argued: “In terms of the simple transport priorities most people know that we would be far better off if they made public transport affordable, reliable and convenient rather than cutting taxes for the aviation industry."

• Patrick Harvie
• Scottish Green Party
• green party conference