What to look out for in the Scottish Budget this afternoon
Shona Robison will announce her tax and spending plans for 2024
Last updated 20th Dec 2023
Deputy First Minister Shona Robison will deliver her first Scottish budget on Tuesday amid warnings it will be the most challenging financial settlement since the start of devolution in 1999.
Ms Robison - who also sits as the country's Finance Secretary - said at the weekend her budget would seek to protect people and public services despite the difficult financial situation with an expected ÂŁ1.5 billion hole to fill.
Possible plans to bring in a new rate of taxation for higher earners have sparked debate, while Ms Robison is also expected to outline plans on how a council tax freeze will be funded.
What can we expect on tax increases?
First Minister Humza Yousaf said during the SNP leadership election earlier this year that he was keen to explore increasing taxes for higher earners.
Reports suggest there will be a new income tax band for higher earners, but the University of Strathclyde's Fraser of Allander Institute warned tax increases would not be enough to plug funding gaps in Scotland's finances.
The new bracket is rumoured to be 45% for those earning between ÂŁÂŁ75,000 and ÂŁ125,000 a year.
Prime Minister Rishi Sunak questioned the move, saying that the Scottish government "needs to explain why it's choosing a different path which is one of higher tax for both people and businesses".
What action can we expect on the cost-of-living crisis?
Mr Yousaf said on Monday that funding would be announced to wipe school meal debt for thousands of families across Scotland.
The Child Poverty Action Group has called for the Scottish Child Payment to be increased from ÂŁ25 per week to ÂŁ30 per week.
Mr Yousaf said in the running to be First Minister that he would like to do this.
A council tax freeze has also been announced, with Ms Robison expected to bring forward plans on how this will be funded on Tuesday.
What cuts are expected?
The Scottish Government will inevitably have to make cuts to public spending.
While there has been no concrete calls from the government that jobs will have to be cuts, local government, Police Scotland and the Scottish Fire and Rescue Service have all announced they will have to cut jobs in order to make ends meet as well as cutting budgets.
Over the weekend, Ms Robison said that the amount of money available for Scotland will be cut as a result of real-term cuts by the UK Government.
She claimed the settlement was over Ă‚ÂŁ700 million lower than if it had matched the increase in inflation over the last two years.
Ms Robison said that the Scottish Government was operating with "one hand behind their back".