Scottish Budget to be set out a month before UK forecast

Finance Secretary Dereck Mackay is set to announce the Scottish Budget next month – weeks before the UK’s spending plan is revealed.

Set out on 6th February, the SNP’s budget cannot consider UK economic forecasts as these get revealed in March alongside Chancellor Sajid Javid’s budget for Britain.

Mr Mackay criticised the UK Government for the delay until 11th March and called the move unacceptable and a “lack of fiscal responsibility”.

He said: “The timing of the UK Budget made it impossible for us to publish our own budget after the UK Government's without drastically restricting the time for parliamentary scrutiny”

Holyrood has to pass a rates resolution, which sets out income tax rates for the Scottish bands, by the start of the new financial year.

The SNP’s block grant will be confirmed by the time Mr Javid presents his tax and spending plans since late confirmation could mean the loss of the Scottish rate of income tax.

Scotland's 32 local councils also need to know early how much they get allocated in the upcoming year as their budgets and council tax rates are due on 11th March.

Mr Mackay said: “In these exceptional circumstances, created by the UK Government, it is vital we give local authorities and public services clarity on their budgets.

He added that he would “work closely with the Scottish Parliament to agree a timetable for the Budget Bill to allow for maximum scrutiny while ensuring certainty for Scotland's vital public services''.

The Finance Secretary had previously warned that public services north of the border could face “terrible calamity'' if Holyrood was unable to pass a budget before the end of March.

He also insisted in a letter to the UK Treasury that it would be “highly undesirable'' for Holyrood to have to set out its own tax and spending plans for 2020-21 before knowing how much it will receive from the UK Government.

Conservative finance spokesman Murdo Fraser said: “After all the faux outrage of last week, it's good to see the SNP government has finally accepted that it does have enough information to go ahead with a budget.

“With substantial Barnett consequentials arising from increased government spending south of the border, this is likely to be the highest overall block grant Scotland will have had from Westminster in a decade.''

As a result, he insisted it was “very clear is there is no justification at this time for further tax increases or even more cuts to vital public services''.

With the SNP forming a minority administration at Holyrood, Mr Mackay will have to persuade at least one other party to back his plans.

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