Finance Secretary to put economic growth at centre of budget

The Finance Secretary is set to put growing Scotland’s economy at the heart of his budget this week, as opposition parties step up demands over tax and spending.

With Derek Mackay expected to announce tax rises in his draft budget at Holyrood on Thursday, the Scottish Conservatives urged SNP ministers to focus on cutting government waste instead, while Labour called for radical change.

Mr Mackay said the budget would seek to “unlock economic potential” in manufacturing, innovation, digital connectivity, infrastructure and housing.

He said: “As well as continuing to protect public services, the 2018/19 budget will prioritise economic growth and innovation to enable Scotland to grasp the opportunities presented by a rapidly changing global economy.

“Our ambition to create an economy that works for Scotland will be driven by investment in infrastructure, capital, research and in our people.

“We are proud of our entrepreneurs and appreciate that the risks they take in order to innovate require investment.

“This budget will meet those needs by delivering on key commitments to support research and development, to give Scottish companies a competitive edge in manufacturing processes through the establishment of the National Manufacturing Institute for Scotland and to reform business rates.”

Low carbon innovation and the roll-out of faster internet would also be a priority, with the budget containing measures to build on the Digital Scotland Superfast Broadband programme, he said.

The Tories challenged minsters to avoid tax increases by improving efficiency in the public sector, publishing analysis of government accounts and freedom of information requests showing £112 million of losses over the past 10 years.

The findings included £32,000 wasted over the last three years as a result of lost mobile phones and computers and a £2.4 million grant given to a firm that went bust in 2014-15.

Finance spokesman Murdo Fraser said: “These figures show that, under the SNP, more than £100 million of taxpayers' money has been simply chucked in the bin.

“The Nationalists have the money to keep taxes down, but thanks to mismanagement and waste, they now want taxpayers to cough up.”

SNP MSP Ivan McKee accused the Tories of “breathtaking hypocrisy”.

He said: “While the UK Government have hammered Scotland with cut after cut, Tory MSPs have demanded the Scottish Government spend more and more money.

“But as if that wasn't enough, the Tories also want us to cut taxes for the highest earners. It doesn't add up.”

Meanwhile, Scottish Labour leader Richard Leonard warned that local councils were facing “an effective cut of over £800 million”.

He said: “We must re-empower and properly resource local government as part of any anti-poverty strategy. That kind of real change requires a radical budget, not tinkering around the edges.”

Scottish Liberal Democrat leader Willie Rennie renewed his party's call for tax increases to invest in education.

He said: “I want an education focus as never before. The budget must get behind teachers, support classroom learning, and match the investment that has proved to increase attainment around the UK.”

A Scottish Government spokesman said improving the education and life chances of children and young people was its “defining mission”.

On government waste, he added: “We manage our budgets and resources very effectively and our latest annual accounts for 2016-17 show the accounting underspend was the lowest since devolution."