Ivan McKee
Scottish National Party · Scotland
“We understand that the SPSO assesses complaints to identify how they should be prioritised. The SPSO prioritises cases where a complainant is vulnerable or the matter is assessed as urgent and ongoing. The SPSO keeps people who are affected by delays informed. In 2024-25, the SPSO reduced the number of open cases by 15 per cent.”
“As part of our programme of public service reform, we are embedding openness, transparency and accountability into how services are designed, delivered and improved. Our next open Government action plan will set out an anti-corruption strategy and plans for improving public participation in decision making.”
“Will he agree to meet me and other members from across the chamber to discuss how we might work together to provide legal support for the Nolan principle of integrity in public life? Ivan McKee: I am very happy to meet the member to discuss that further. Such issues are hugely important to the Government.”
“How bad does the situation have to get before a full investigation is made? Ivan McKee: That would be a matter for the Parliament, not the Government. As an organisation, the ombudsman rightly sits separate from the Government.”
“More than £300 million has been saved through more efficient procurement in the past two years and we are projecting savings of more than £50 million through the rationalisation of estates—13 core Scottish Government buildings have been closed in the past three years and there are more to follow.”
“I am delighted to open this afternoon’s debate on public service reform, which I believe will be the defining task of this session of Parliament.”
The complete record
Every one of 658 lines we hold for Ivan McKee, in date order, each linked to its source. Free to read, in full, without an account. Page 11 of 14.
“Oliver Mundell: Processing planning applications takes up significant resources, especially for smaller rural authorities. Despite those commitments on planning and development, net expenditure by local authorities was more than 30 per cent lower in 2023-24 than it was in 2013- 14. We do not have to look very far to find damaging delays that are holding back growth, particularly in the rural economy. What work is the minister doing to review the work of local authorities and ensure that there is consistency across Scotland? Ivan McKee: We are delighted to work with the national planning improvement champion and his team in the Improvement Service.”
“The Scottish Government is taking a range of actions to boost resources, skills, proportionality and long-term resilience in planning. We recently increased planning application fees, and a further increase will follow this summer, putting more money into local authorities. Scotland’s first planning hub is providing direct support to authorities. We also fund the national planning improvement champion, who is working directly with local authorities. Through our future planners programme, we are directly recruiting graduates, and we are trebling the number of bursaries that we offer. Last week, I launched the national planning skills commitment plan, which involves cross-sector commitments to improve skills and resources across planning.”
“Ivan McKee: First, the number of “quangos”, as Liz Smith calls them, has been reduced. We published data that shows that the number has come down from 199 when we took over to 131 at the moment. There has therefore been a significant reduction. However, the important point is the data. I am, frankly, disappointed that the member has not looked up the extensive quantity of data that we published on precisely the point about expenditure, down to a very high level of granularity, at the end of last year. We are absolutely committed to being transparent about that data and understanding where there are opportunities to drive further cost savings across public bodies’ running costs, on top of the £280 million that we have already delivered over this year and last year and the £300 million that we will deliver over the next two years.”
“It is our intention to continue to collect that data on an on-going basis to enable the identification of further opportunities for more cost reductions through the removal of duplication and increased efficiency in service delivery. Liz Smith: I thank the minister for that answer. Nonetheless, serious concerns have been issued by the Information Commissioner. Whatever the total is—I have to say that it is strange that the Scottish Government is questioning what the Information Commissioner has said—will the minister make an absolute commitment, in the light of the Finance and Public Administration Committee’s concerns, to ensure that the number of quangos in Scotland is reduced and that we get greater transparency and scrutiny about how that will happen?”
“I do not recognise the £6.6 billion annual cost that Liz Smith has referred to. As the member should know, data that was supplied by public bodies for 2022-23 and was published towards the end of last year indicated that public bodies’ total resource expenditure was more than £23 billion, through which they delivered a huge range services, including in health, education justice and elsewhere. Of that, public bodies spent almost £1.3 billion on running their corporate functions, and another £2.3 billion was spent by those corporate functions. Public bodies passed through funding of more than £7.6 billion to other organisations, including third sector and public sector organisations. An additional £800 million was spent on the Scottish Government’s own operating costs.”
“We have a Labour MSP asking the Scottish Government how we will manage in an environment in which there is a planned slowdown in funding increases for the Scottish Government from the UK Labour Government. If Michael Marra wants to make a serious impact, he should put pressure on his colleagues at Westminster not to slow down increases in the Scottish Government’s funding from 2026-27 onwards.”
“Will the minister tell us when and on what date the long-awaited and vital document will be published? Ivan McKee: As I have indicated, the document will be published later in the autumn. Of course, it is important that we recognise that that will follow the UK Government’s spending review, which will be hugely important information. Michael Marra quotes from the IFS’s report. Preceding that quote are the words “in this context”. What does the report say about that context? It talks about “a planned slowdown in increases in UK government funding” and notes: “The outlook ... will become much clearer after the UK government’s multi-year Spending Review due on 11 June.” It goes on to say: “it seems highly likely that overall funding increases will be smaller for at least several years from 2026–27 onwards”.”
“Following last week’s approval of the Scottish budget for 2025-26, the Government will continue to ensure delivery across our collective priorities, which include tackling child poverty, supporting public services and promoting economic growth. Michael Marra: Of course, this year, there has been an uplift of £610 million for the capital budget from the United Kingdom Labour Government. We have to ask whether the Government is capable or competent enough to spend it effectively. For starters, it has been hard for it to do any of that when the Government has not published a capital spending plan for nearly two years. That was promised in December 2023, March 2024, May 2024 and December 2024. Now, in March 2025, there is still no sign of it, with the Government seemingly kicking it into the long grass of autumn 2025.”
“With the pressures of falling into a VAT trap, businesses having extra costs to administer the scheme and other issues, will the Scottish Government work with authorities to review what data actually needs to be collected or, better, finally pause the roll-out of the scheme? Ivan McKee: I commit to our continuing to work with local authorities, businesses and business organisations to ensure that we make the process as streamlined as possible and to understand how to make the scheme deliver on its intention while leveraging in as little administrative or other impact as possible on businesses. Employer National Insurance Contributions (Aberdeen City Council) 2.”
“Councils that introduce a visitor levy are required to establish a visitor levy forum. Membership is drawn from local businesses, and it provides views on the scheme. Scottish Government officials continue to liaise with VisitScotland in considering how best to build on the work of the expert working group, and the Scottish Government will conduct a full review of the operation of the 2024 act within three years of the introduction of the first scheme. Tim Eagle: A month after asking the minister a different question on the issue, my inbox remains full of emails from worried constituents about the disaster that is the visitor levy. As more details have come out, businesses have said to local authorities, and to me, that the proposed spreadsheet to collect data is a massive overreach of power and hugely burdensome to businesses.”
“That £13.9 billion is the combination of general revenue grant of more than £10.8 billion and the distributable amount of non-domestic rates income, which has been set at £3.1 billion.”
“However, the presentation of the local government settlement has been consistent in recent years, and table 4.12 of the budget confirms that, by the conclusion of the 2025-26 spring budget revision, the local government settlement will be more than £1 billion larger than it will be at the conclusion of the 2024- 25 SBR. It is important to note that the total funding package is already finalised, following the passage of the Budget (Scotland) (No 4) Bill. Today’s motion simply seeks Parliament’s approval for the distribution of that approved funding total to individual local authorities. The order seeks approval for the distribution and payment of £13.9 billion of the revenue total of £14.2 billion, with the balance mainly made up of specific grant funding, which is administered separately.”
“More frequent and meaningful budget engagement has been fundamental in the decisions that underpin the budget, including the real-terms protection that is applied to general revenue grants. The budget also baselined a further £525 million of funding, following the £1 billion of funding that was baselined across health, education, justice, net zero and social justice in 2024-25. We hope to publish a version of the fiscal framework in the coming weeks and we continue to work with COSLA to develop the assurance and accountability framework that is critical to further substantial baselining of funding. The presentation of figures in the Scottish budget comparing the autumn budget revision or the spring budget revision with the budget was requested by the Finance and Public Administration Committee.”
“The 2025-26 budget that Parliament passed earlier in the week is a budget that delivers for the people of Scotland. It invests in our public services, lifts children out of poverty, supports jobs and the economy and responds to the climate emergency. The budget will deliver record funding of more than £15 billion to councils in 2025-26; we are providing revenue funding of more than £14.2 billion and almost £800 million of support for capital expenditure. The 2025-26 local government finance settlement provides an additional 8 per cent, which is a real-terms increase of 5.5 per cent compared with 2024-25. The outcome of the Scottish budget provides demonstrable evidence of our actions to deliver a fiscal framework between the Scottish Government and local government.”
“However, the challenges that our public services face can be addressed only by longer-term investment plans and commitments. In response to the UK Government’s changes to employer national insurance contributions, the Cabinet Secretary for Finance and Local Government announced that the Scottish Government will provide an additional £144 million for local government, which is equivalent to a 5 per cent national increase in council tax. However, the UK Government must fully fund the cost of the increase to Scotland’s public sector and not the much lower Barnett share of the funding that is provided in England. With our partners in the Convention of Scottish Local Authorities, ministers will continue to press the UK Government to fund the additional costs in full, and I would welcome support from across Parliament in that respect.”
“The motion on the Local Government Finance (Scotland) Order 2025 seeks Parliament’s approval for the guaranteed allocations of revenue funding to individual local authorities for 2025-26. It also seeks agreement on the allocation of additional funding for 2024-25 that has been identified since the Local Government Finance (Scotland) Order 2024 was approved on 28 February last year. We cannot, of course, ignore the challenging circumstances in which we have had to agree the Scottish budget this year. The Scottish Government’s block grant funding for 2025-26 represents a 1 per cent real-terms increase for resource funding following the welcome reset of budgets in 2024-25. That first step to address 14 years of United Kingdom Government austerity measures is welcome.”
“Ivan McKee: The member is referring to the McCloud remedy work that is progressing in relation to the UK Government’s pension reforms in 2015. The delay has been due to a number of reasons. As I said, the issue has affected all similar pension schemes across the UK. No member of the scheme will be disadvantaged as a consequence of that, because any payments will be backdated, and they will receive interest payments on top of that. The SPPA continues to communicate with members on that. If there are other technical aspects of the issue that the member wants to discuss further, I would be happy to meet her to delve into that in more detail. War in Ukraine (Third Anniversary)”
“However, despite having the opportunity to buy back their pensions, they were ultimately forced to exit. With the pause under the Public Service Pensions and Judicial Offices Act 2022, that discrimination continues and prevents officers from retiring. Will the minister provide an update on a proposed resolution and a timescale for when those officers will be able to buy back their pensionable term under the 1987 scheme, as agreed, to provide a remedy for the group of police officers who are affected? Will the minister share with Parliament when the date range that was released last month by the Home Office and the Treasury regarding some members who can be unpaused can be clarified, because that appears to continue discrimination within the police force?”
“I have written to the UK Government in relation to reserved matters that affect the legacy police pension scheme and the McCloud pensions remedy, which removed age discrimination in UK Government pension reforms in 2015. The Scottish Public Pensions Agency is making progress on providing remedy information to more than 200,000 members of devolved Scottish schemes by 31 March 2025. The complexity of the work means that the agency will not meet that deadline for all members, which, it has to be noted, is a similar position to that of other UK schemes. I have informed the Finance and Public Administration Committee of the latest position. Meghan Gallacher: Many officers who have proven to be unlawfully discriminated against were successful in that remedy under the terms that were set by the contingent decision process.”
“Motion agreed to, That the Parliament agrees that all relevant provisions of the Great British Energy Bill, introduced in the House of Commons on 25 July 2024 and subsequently amended in relation to an independent review of GB Energy (clause 6A) on 20 February 2025, so far as these matters fall within the legislative competence of the Scottish Parliament, should be considered by the UK Parliament. The Presiding Officer: Decision time is now concluded. Point of Order 18:01”
“On a point of order, Presiding Officer. I do not think that my vote was registered. I would have voted yes. The Presiding Officer: Thank you, minister. We will ensure that that is recorded. For Adam, George (Paisley) (SNP) Adam, Karen (Banffshire and Buchan Coast) (SNP) Adamson, Clare (Motherwell and Wishaw) (SNP) Allan, Alasdair (Na h-Eileanan an Iar) (SNP) Arthur, Tom (Renfrewshire South) (SNP) Baillie, Jackie (Dumbarton) (Lab) Baker, Claire (Mid Scotland and Fife) (Lab) Beattie, Colin (Midlothian North and Musselburgh) (SNP) Bibby, Neil (West Scotland) (Lab) Boyack, Sarah (Lothian) (Lab) Brown, Keith (Clackmannanshire and Dunblane) (SNP) Brown, Siobhian (Ayr) (SNP) Choudhury, Foysol (Lothian) (Lab) Clark, Katy (West Scotland) (Lab) Coffey, Willie (Kilmarnock and Irvine Valley) (SNP) Cole-Hamilton, Alex (Edinburgh Western) (LD) Constance, Angela (Almond Valley) (SNP) Dey, Graeme (Angus South) (SNP) Don-Innes, Natalie (Renfrewshire North and West) (SNP) Doris, Bob (Glasgow Maryhill and Springburn) (SNP) Dornan, James (Glasgow Cathcart) (SNP) Dunbar, Jackie (Aberdeen Donside) (SNP) Duncan-Glancy, Pam (Glasgow) (Lab) Ewing, Annabelle (Cowdenbeath) (SNP) Ewing, Fergus (Inverness and Nairn) (SNP) Fairlie, Jim (Perthshire South and Kinross-shire) (SNP) FitzPatrick, Joe (Dundee City West) (SNP) Forbes, Kate (Skye, Lochaber and Badenoch) (SNP) Gibson, Kenneth (Cunninghame North) (SNP) Gilruth, Jenny (Mid Fife and Glenrothes) (SNP) Gougeon, Mairi (Angus North and Mearns) (SNP) Grahame, Christine (Midlothian South, Tweeddale and Lauderdale) (SNP) Grant, Rhoda (Highlands and Islands) (Lab) Gray, Neil (Airdrie and Shotts) (SNP) Griffin, Mark (Central Scotland) (Lab) Harper, Emma (South Scotland) (SNP) Haughey, Clare (Rutherglen) (SNP) Hepburn, Jamie (Cumbernauld and Kilsyth) (SNP) Hyslop, Fiona (Linlithgow) (SNP) Johnson, Daniel (Edinburgh Southern) (Lab) Kidd, Bill (Glasgow Anniesland) (SNP) Lennon, Monica (Central Scotland) (Lab) Leonard, Richard (Central Scotland) (Lab) Lochhead, Richard (Moray) (SNP) MacDonald, Gordon (Edinburgh Pentlands) (SNP) MacGregor, Fulton (Coatbridge and Chryston) (SNP) Mackay, Rona (Strathkelvin and Bearsden) (SNP) Macpherson, Ben (Edinburgh Northern and Leith) (SNP) Maguire, Ruth (Cunninghame South) (SNP) [Proxy vote cast by Rona Mackay] Marra, Michael (North East Scotland) (Lab) Martin, Gillian (Aberdeenshire East) (SNP) Mason, John (Glasgow Shettleston) (Ind) Matheson, Michael (Falkirk West) (SNP) McAllan, Màiri (Clydesdale) (SNP) [Proxy vote cast by Jamie Hepburn] McArthur, Liam (Orkney Islands) (LD) McKee, Ivan (Glasgow Provan) (SNP) McKelvie, Christina (Hamilton, Larkhall and Stonehouse) (SNP) [Proxy vote cast by Jamie Hepburn] McLennan, Paul (East Lothian) (SNP) McMillan, Stuart (Greenock and Inverclyde) (SNP) McNair, Marie (Clydebank and Milngavie) (SNP) McNeill, Pauline (Glasgow) (Lab) Minto, Jenni (Argyll and Bute) (SNP) Mochan, Carol (South Scotland) (Lab) Nicoll, Audrey (Aberdeen South and North Kincardine) (SNP) O’Kane, Paul (West Scotland) (Lab) Rennie, Willie (North East Fife) (LD) Robertson, Angus (Edinburgh Central) (SNP) Robison, Shona (Dundee City East) (SNP) Roddick, Emma (Highlands and Islands) (SNP) Sarwar, Anas (Glasgow) (Lab) Smyth, Colin (South Scotland) (Lab) Somerville, Shirley-Anne (Dunfermline) (SNP) Stevenson, Collette (East Kilbride) (SNP) Stewart, Kaukab (Glasgow Kelvin) (SNP) Stewart, Kevin (Aberdeen Central) (SNP) Sturgeon, Nicola (Glasgow Southside) (SNP) Sweeney, Paul (Glasgow) (Lab) Swinney, John (Perthshire North) (SNP) Thomson, Michelle (Falkirk East) (SNP) Todd, Maree (Caithness, Sutherland and Ross) (SNP) Tweed, Evelyn (Stirling) (SNP) Villalba, Mercedes (North East Scotland) (Lab) Whitfield, Martin (South Scotland) (Lab) Whitham, Elena (Carrick, Cumnock and Doon Valley) (SNP) Wishart, Beatrice (Shetland Islands) (LD) Yousaf, Humza (Glasgow Pollok) (SNP) Against Balfour, Jeremy (Lothian) (Con) Briggs, Miles (Lothian) (Con) Carlaw, Jackson (Eastwood) (Con) Carson, Finlay (Galloway and West Dumfries) (Con) Dowey, Sharon (South Scotland) (Con) Eagle, Tim (Highlands and Islands) (Con) Findlay, Russell (West Scotland) (Con) Gallacher, Meghan (Central Scotland) (Con) Golden, Maurice (North East Scotland) (Con) Gosal, Pam (West Scotland) (Con) Greene, Jamie (West Scotland) (Con) Gulhane, Sandesh (Glasgow) (Con) Hamilton, Rachael (Ettrick, Roxburgh and Berwickshire) (Con) Hoy, Craig (South Scotland) (Con) Halcro Johnston, Jamie (Highlands and Islands) (Con) Kerr, Liam (North East Scotland) (Con) Kerr, Stephen (Central Scotland) (Con) Lumsden, Douglas (North East Scotland) (Con) McCall, Roz (Mid Scotland and Fife) (Con) Mountain, Edward (Highlands and Islands) (Con) Mundell, Oliver (Dumfriesshire) (Con) Ross, Douglas (Highlands and Islands) (Con) Simpson, Graham (Central Scotland) (Con) Smith, Liz (Mid Scotland and Fife) (Con) Stewart, Alexander (Mid Scotland and Fife) (Con) Webber, Sue (Lothian) (Con) Wells, Annie (Glasgow) (Con) White, Tess (North East Scotland) (Con) Whittle, Brian (South Scotland) (Con) Abstentions Burgess, Ariane (Highlands and Islands) (Green) Chapman, Maggie (North East Scotland) (Green) Greer, Ross (West Scotland) (Green) Harvie, Patrick (Glasgow) (Green) Mackay, Gillian (Central Scotland) (Green) Ruskell, Mark (Mid Scotland and Fife) (Green) Slater, Lorna (Lothian) (Green) The Presiding Officer: The result of the division on motion S6M-16578, in the name of Alasdair Allan, on the Great British Energy Bill, is: For 86, Against 29, Abstentions 7.”
“To address the challenges in our NHS, the budget will provide about £200 million to support improvements in waiting lists and in delayed discharge. Brian Whittle: I always ask this question, but I never get an answer. If we have a record health budget, why does Scotland have the worst health outcomes in Europe? That is why we have such high welfare costs. Ivan McKee: That is obviously a legacy, which we are hugely focused on fixing, of things that happened over many decades. [Interruption.]”
“On our priority of tackling the climate emergency, delivering on our net zero targets continues to be a priority for the Government. We are investing almost £3 billion in capital and almost £2 billion in resource for activities that will have a positive impact on delivery of our climate change goals. I turn to our priority of providing high-quality and sustainable public services. In local government, meaningful budget engagement has secured a record settlement: local authorities will receive funding of more than £15 billion. Investing in the Verity house agreement, the Government has baselined a further £525 million of funding. We will provide £16.2 billion for front-line NHS boards as part of the all-time high of £21.7 billion that we are investing in health and social care.”
“Ivan McKee: This Government always balances our budget. We will look at what those demands are—[Interruption.] Members can talk about what might or might not happen in the future, but we are focused on understanding how trends are, moving forward, and how we can mitigate them. We do that every year in the budget and we deliver—we do not just talk about it. As the cabinet secretary brings forward the medium-term financial strategy and the fiscal sustainability plan, we will continue to address the issues seriously to ensure that we can continue to afford our priorities and the priorities of the people of Scotland— Craig Hoy: Will the minister take an intervention on that point? Ivan McKee: I will come back to Craig Hoy.”
“To further our ambition for everyone to have a safe, good-quality and affordable home that meets their needs, the Government will invest £768 million in affordable housing in 2025-26. The Tories keep coming back to this point, so I will ask them this question: if they want to cut social security spending, where do they want to cut it? Do they want to cut support for disabled people, support for carers, the Scottish child payment—which is lifting children and families out of poverty—or the winter fuel payment, which this Government is providing despite what the UK Labour Government has done to that benefit? Liz Smith: In that context, is Ivan McKee concerned about the increase in adult disability payments and child disability payments, and the fact that that spend is going up by such a degree? Is that not a concern for the public finances?”
“To help to keep children out of poverty and invest in our people, the budget will provide a record £6.9 billion in social security benefits and payments, which will reach around 2 million people—about one third of the people of Scotland. That includes £3 million to develop systems that will help to mitigate the two-child benefit cap—something that Labour members were not able to bring themselves to support at the UK level. Pam Duncan-Glancy: I ask the minister to respond to the fact that a report that was published today has found that the attainment gap is widening at all levels for pupils across Scotland. Ivan McKee: We will continue to support the education system by providing record funding to deliver on our priorities. That is central, and we will continue to focus on reducing the attainment gap.”
“This is a good budget for the culture sector, with an additional £34 million being provided for it. That is, I believe, the biggest-ever increase in the culture budget—a point that was not mentioned by any of the Opposition speakers this afternoon, which is very telling. The budget will deliver on the Government’s priority of eradicating child poverty, and we continue to use our social security powers to support those who are most in need. Just last month, the Joseph Rowntree Foundation set out in its “UK Poverty 2025” report that, across the UK, it is expected that only in Scotland will child poverty rates fall by 2029, thanks in part to measures including the Scottish child payment.”
“Presiding Officer, the budget focuses on the Government’s four top priorities, which are the priorities of the people of Scotland. I will show how it will deliver on those priorities. It is a good budget for the economy. It will support the Government’s priorities for enterprise, innovation and business. Our spending plans target people, places and businesses right across Scotland and will support the growth of our economy over the next year. To do that, we are investing £320 million in our enterprise agencies, £200 million more in the Scottish National Investment Bank and almost £90 million in helping to secure Grangemouth’s future. In addition, through the budget, we will continue to spend £90 million on delivering employability services, including specialist support for disabled people, young people and parents across the country.”
“Should those come from support for disabled people or carers, from the winter fuel payment for elderly people or from the child payment, which is taking tens of thousands of children out of poverty? Craig Hoy: I thank the Minister for Public Finance for his intervention, because it allows me to remind members and the people who are watching that the SNP’s expenditure on welfare is set to double over the next four years. Perhaps he can explain how he intends to pay for that. If the minister knocks on the same doors as I do, he will realise that people would prefer to be getting treatment in the NHS in order to get back to work, not languishing on benefits. Scottish Financial Enterprise has said that the income tax changes in the Scottish budget fall short.”
“Will Craig Hoy take an intervention? Craig Hoy: I will, in a moment. Devolved income tax decisions mean that Scottish taxpayers are paying £1.7 billion more than they would if rates and thresholds were the same as in the rest of the UK, yet the net funding that the Scottish Government receives is only £838 million, because the tax base has grown more slowly in Scotland than in the rest of the UK. That tax gap has been made in Scotland by the Scottish National Party. I will give way, to allow Mr McKee to say how he will plug that gap. Ivan McKee: Craig Hoy talks about doing the same thing again and again and expecting different results. The result that we expect is a balanced budget, which we have had again and again. Craig Hoy talks about cuts to social security.”
“The question is, that motion S6M-16531, in the name of Shona Robison, on the Scottish income tax rate resolution 2025-26, be agreed to. Are we agreed? Members: No. The Presiding Officer: There will be a division. There will be a short suspension to allow members to access the digital voting system. 15:00 Meeting suspended. 15:05 On resuming— The Presiding Officer: We move to the vote on motion S6M-16531, in the name of Shona Robison, on the Scottish income tax rate resolution 2025-26. Members should cast their votes now. The vote is closed.”
“I lost a small wager with my colleague Shona Robison on how Labour might vote this afternoon. Of course, the inconsistency around Labour voting for the tax policy but not voting for the budget seems typical of its muddled positioning at this point in time. The budget chooses a path of stability in our income tax choices to provide certainty for our taxpayers regarding their take-home pay after years of high inflation, certainty for our businesses after the damage of EU exit and the insecurities facing the world economy, and certainty for our public services, with record investment. I encourage all members to support the motion. The Presiding Officer: That concludes the debate on the Scottish income tax rate resolution 2025-26. It is now time to move to the question on the motion.”
“We contrast that with the almost £600 million in tax cuts that the Tories call for, which would directly impact our ability to provide those services, and the £700 million that, as my colleague the cabinet secretary just highlighted, Labour wants to take out of the availability for public spending in Scotland through what passes for its income tax policy, plans for which were hastily cobbled together on the back of an envelope. That funding allows the Scottish economy to regain momentum and prosper after the years of Covid and the challenges resulting from Brexit. It will support continued renewal of our NHS and allow us to seize the opportunities of the green energy transition. I hope that members will vote positively for the motion, and I thank those who have already indicated that they will do so, including, it appears, Labour members.”
“Of course, we want to get as many people working in the economy as we can and provide them with the skills to contribute and to fill the many gaps that there are in skills as Scotland’s economy continues to grow and create opportunities. Our approach ensures that we can continue to support vital services such as the ones that Ross Greer mentioned that provide the most generous public service offering available in any part of the UK, ensuring that Scotland remains a great place in which to live, work, study and do business.”
“Scotland’s economy is not doing as well as it could do, but it is doing better at the moment than the economy of the rest of the UK. Ross Greer: Does the minister agree that the response to those in the Parliament who demand that we widen the tax base and, by implication, take people who are out of work and on social security into work is that the solution is not to slash their social security payments but to provide them with the employment training and support that is required to get them into the workplace, if they so wish, and that that costs money, which we need to raise through this progressive tax system? Ivan McKee: Ross Greer makes a valid point.”
“It is a proposal that is constructed in a balanced way and provides a period of income tax stability for taxpayers while allowing businesses to invest in a growing economy in Scotland. That point about a growing economy is important, because we hear some of the naysayers in the chamber talk down Scotland’s economy. The last available data on an annualised basis shows that Scotland’s economy is growing at 1.2 per cent, which is higher than the 1.0 per cent across the rest of the UK; Scotland’s unemployment is at 3.8 per cent, which is lower than the 4.4 per cent across the rest of the UK; and, for the ninth year in a row, inward investment in Scotland is higher than it is in every other part of the UK outside of London.”
“Today, Parliament is being asked to vote on a policy that will raise much-needed revenues for public services while continuing to see the majority of taxpayers in Scotland pay less than they would if they lived elsewhere in the UK. Analysis of our tax and social security policies shows that, on average, households in the lower half of the income distribution are £450 a year better off than they would be south of the border, and the SFC estimates that our income tax policy will bring in £20.5 billion for the Scottish budget in 2025-26, which is £745 million more than it forecast for 2025-26 at the time of the Scottish budget last year. During our tax strategy engagement, we heard the business community loud and clear when it asked for greater certainty and no further increases to income tax. That is what the budget delivers.”
“I will start by picking up on the point that Willie Rennie just made, because it is important, although he perhaps does not realise its full implications. He is absolutely right that the Parliament has moved from just talking about spending to talking about raising revenue, as we acquire more and more of the powers of an independent state. As we continue down that journey towards full independence, I am sure that he will join me in welcoming the Parliament’s ability to talk about all the issues that affect an independent state. Willie Rennie: The minister will know that we can stop at times. Ivan McKee: Perhaps it was the enthusiasm and momentum behind Willie Rennie’s dialogue that made me sure that he was on that journey with us.”
“Other than enabling the Government to grab meaningless headlines on its claim that people in Scotland are paying less tax, regardless of how much less they are actually paying, there is no rational or economic case for our tax structure being more complex than that of the rest of the UK. We now have a personal allowance, a starter rate, a basic rate, an intermediate rate, a higher rate, an advanced rate and a top rate, whereas the rest of the UK has a basic rate, a higher rate and an additional rate. The top-end rate is higher here than it is in England—48 per cent rather than 45 per cent—and, at the mid and upper levels, the rates are 42 per cent and 45 per cent, rather than the simple 40 per cent rate that exists south of the border.”
“The situation led Audit Scotland to warn: “This current economic performance gap underlines the importance of relative economic growth to Scotland’s public finances and should be a key area of focus for the Scottish Government in the coming years.” We do not think that there is enough in the budget to enable the Government to say that its approach will work. This week, the Cabinet Secretary for Finance and Local Government sidestepped my question about whether the SNP’s complex set of income tax rates leads to higher compliance costs, but everyone can see that it clearly does.”
“In January, Audit Scotland said that, although income tax revenues are continuing to rise—I concede that point—the impact on the Scottish budget “is significantly reduced by relatively slower economic growth in Scotland compared to the rest of the UK.” That is partly because of higher tax, which, in itself, and alongside the SNP’s other policies, is making Scotland a less attractive place in which to work, invest or grow. Between 2017 and 2022, Scottish taxpayers paid an additional £3.4 billion as a result of devolved tax policy differences. However, slower economic growth in Scotland meant that the net benefit to the budget over the same period was the much lower amount of £629 million. When I raised that with the First Minister earlier today, he had no answer.”
“Others are concerned that there are people in Scotland who are now incorporating to avoid the SNP’s high-tax regime and that the proceeds of that incorporation—the taxes—are now being paid to the UK Treasury rather than to the Scottish Government. Those are direct consequences of the SNP’s high-tax regime. We also need to look at the SNP Government’s tax decisions and the impact that those have had on the wider performance of the Scottish economy.”
“Craig Hoy keeps making the point that we do not have information on behavioural change, and then he goes on to quote a raft of information on behavioural change. Will he make his mind up? Craig Hoy: I am saying that the Government does not have the evidence that it would like to have to support its argument that there is no behavioural change. I will give some evidence to the contrary. Earlier this year, research by Scottish Financial Enterprise found that 81 per cent of its members were concerned about the impact of tax divergence on retaining staff, with 66 per cent saying that the changes in the tax regime had harmed investment. That is independent research from an independent organisation.”
“13:32 Meeting suspended. 14:00 On resuming— Portfolio Question Time Social Justice”
“We are exploring whether to make use of the mutual investment model to invest in Scotland’s infrastructure. Any use will only be considered when it provides value for money for the taxpayer. The Scottish Government will never return to the PFI model because PFI was an expensive mistake. It simply did not deliver the best value for the people of Scotland. The only private finance approach currently available is the mutual investment model, which shares profits between the public and private sector. That model will be considered alongside a range of other financing options, and we are exploring whether and how best to make use of MIM to invest in Scotland’s infrastructure going forward. The Deputy Presiding Officer: Thank you to all members for their co-operation in respecting the time allocations for speeches, given our resumption at 2 pm.”
“As members know, we have very limited capital borrowing limits, which constrains our ability to use capital grants to fund asset creation and investment. Used appropriately, the correct PPP mechanism can allow us to create additionality in the capital budget and result in more investment in Scotland’s assets than we would otherwise be able to deliver. It can transfer financial and maintenance risk from taxpayers to investors. Those risks can include project overruns, change orders, delays, and anything else that may increase the cost of a project. To ensure that we are considering all the available options, the Scottish Futures Trust was asked to examine new profit-sharing finance schemes, such as the mutual investment model, to help secure the investment that we need and— very importantly—best value for the taxpayer.”
“Ivan McKee: The difference between the mutual investment model and other mechanisms such as PFI is that, in the mutual investment model, the public sector partner takes an investment share in the vehicle that delivers the project. The public sector partner takes part in the investment and therefore shares in the profits that come back due to having that equity holding and the way that the project is funded and delivered. The costs and benefits of pursuing public- private partnerships need to be thoroughly analysed in a transparent manner. In an environment where our ambitions for Scotland’s infrastructure assets outstrip our grant funding from Westminster, the Government will always explore options for delivering capital investment.”
“The Government is committed to ensuring that contractual obligations are delivered and that contracts are as affordable as they can be. That is why we asked the Scottish Futures Trust to support public bodies to optimise value for money from their PFI contracts. That assistance is comprised of training and support for contract managers. The SFT can also support bodies in realising contract management improvements, including by rescoping services and optimising risk transfer. Graham Simpson: I mentioned the mutual investment model, and so has the minister. Will he briefly explain why he thinks that that model will offer value for money?”
“The only private finance approach that is currently available is the mutual investment model, which will be considered alongside a range of other financing approaches. We have always been clear about our concerns about the flexibility and value for money offered by historic PFI contracts. That is why we brought them to an end. The PFI contracts that remain operational are often complex and need active management, to which the Government remains committed. However, the termination of any PFI contract is a matter for the public sector body that awarded it. PFIs are long-term contracts, where risk and reward were set at the outset. Early termination can be a complex and expensive process, and the costs of breaking long-term contracts are substantial. Each authority would require to consider value for money in that context.”
“Prior to the NPD programme, the NPD model had been developed as an alternative to PFI in Scotland, and five NPD-type contracts were signed earlier, between 2005 and 2010. The NPD model was further developed by the Scottish Futures Trust, which manages the NPD programme. The programme was delivered through two channels, NPD itself and the hub, between 2010 and 2021, when the last project became operational. In 2019, the Scottish Government signalled a new approach to revenue finance, due to the implications of classification changes affecting the NPD programme. The classification changes meant that the revenue-funded NPD and hub models were to be classified to the public sector, and they subsequently no longer provided additionality. Revenue-funded NPD and hub models have not been used for any new projects since then.”