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.”
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“Two years ago, the Government set a 9 per cent envelope for public sector pay. Going into this year, it has already spent 8 per cent of that 9 per cent. What is the message to public sector unions? The IFS says that controlling public sector labour costs is likely to be challenging. How will the Government rise to that challenge? Ivan McKee: The Government will continue to do what it always does: it will fund the priorities of the people of Scotland, including by ensuring that our public sector workers are paid properly while balancing our budget by increasing tax and other revenues to support our growing economy. We recognise the need for continued public service reform to ensure that resources are focused where they make the biggest difference and positively impact on outcomes.”
“I think that we all agree that she will be missed in the chamber—even if she has not yet realised that Scotland’s economy is now growing faster than that in the rest of the UK and that more taxpayers are moving from the rest of the UK to Scotland than are moving in the other direction as a result of the Government’s policies. We all recognise the fiscal challenges facing our public services, now and into the future. Through prudent fiscal management, the Government continues to fund the priorities of the people of Scotland while balancing our budget and delivering within the resources available. Craig Hoy: [Made a request to intervene.] Ivan McKee: Will I get any time back, Presiding Officer? The Presiding Officer: Yes. Craig Hoy: One of the greatest challenges for this and future budgets in Scotland is public sector pay.”
“Perhaps the Parliament will deliver training on negotiation skills alongside training on the budget process, which I am sure that Mr Marra will benefit from. As for the Tory contributions, we heard the same old, same old: tax cuts on the one hand and more spending on the other—complete economic illiteracy from the party of Liz Truss. We heard that from Craig Hoy, Stephen Kerr and Murdo Fraser. We heard some of it from Liz Smith, but, to be fair to her, she tries to present a coherent argument that goes beyond soundbites, and we have to pay tribute to her for the work that she has done on the Finance and Public Administration Committee over many years.”
“Given Miles Briggs’s recent representations on that in the Parliament, he should surely support our capital spend being focused on that area by voting for the budget. There were interesting contributions this afternoon. Jamie Hepburn, Kevin Stewart, Ross Greer and others reminded us of the choices that we have made in Scotland and the long list of types of support that the citizens of Scotland get that is unavailable elsewhere in the UK. Jamie Greene recognised the seriousness of the work that we do and the implications of the decisions that we make in the real world. Serious politicians get on and get things done. I am sure that Kenny Gibson will be back in the Scottish Parliament, but if not, I have no doubt that a career in comedy beckons. As for Agent Marra, the first rule of negotiations is that if you do not ask, you do not get.”
“Liz Smith: Does the minister recognise that that commitment, which the Parliament has now made by passing the bill, was an SNP manifesto commitment in 2021? Ivan McKee: It still needs to be funded, and we still need to pass the budget. Liz Smith has to decide whether or not she wants to support that measure. We are providing an additional £40 million of investment in sport and physical activity to support opportunities for people across Scotland to be more active. I am sure that colleagues such as Brian Whittle will welcome that and vote accordingly. We are committing £926 million to continue progress towards the affordable housing supply programme target of delivering 110,000 affordable houses by 2032.”
“As a result, the Liberal Democrats and Jeremy Balfour have confirmed their support for the bill. I thank those members and others who have engaged in the process. Their thoughtful contributions have helped this Government to develop a stronger budget for the people of Scotland. Beyond those specific asks, there are measures in the budget that other members in the chamber hold dear. The Schools (Residential Outdoor Education) (Scotland) Bill became an act on 11 February, and work is under way to make progress on its implementation. The 2026-27 budget will support outdoor learning policy development and implementation. We welcomed Liz Smith’s constructive approach to improving the affordability and deliverability of the bill, and I fail to see how she could vote against a budget that contains that measure.”
“It invests more to improve our transport services by providing more than £4.4 billion of capital investment to 2029-30 to enhance our rail network and fleet, and more than £1 billion of capital to deliver ferry service improvements. It also supports new approaches to public services by providing £36 million to begin the roll-out of the new high street GP walk-in centres, which will provide additional same-day access for communities. In her opening remarks, the Cabinet Secretary for Finance and Local Government underlined the importance of collaboration in a process such as this, and I whole-heartedly agree. Our pre-budget and post-budget engagement with members across the chamber has been motivated by a commitment to consensus and co-operation.”
“We are also taking forward measures that encourage a switch to sustainable modes of transport, including a freeze of ScotRail fares in 2026-27. We remain committed to delivering on the priorities of the climate change plan in a fiscally sustainable way. The budget supports that ambition. The budget also delivers support for the public services that the people of Scotland rely on. It will provide record funding to local government of £15.7 billion, including the additional £20 million of funding that was announced at stage 1, which can be used towards funding the real living wage in the adult and child care sectors.”
“We are providing more than £325 million of funding for the enterprise agencies in order to continue to improve business and community resilience, as well as creating and protecting jobs. We also know that investing in the people of Scotland and their future will support economic growth, which is why this budget invests a combined increase of £70 million in Scotland’s colleges and a further £8 million to support adult learners. The Government also recognises that our future can be protected only by taking seriously the climate emergency that we face. That is why the budget invests more than £5 billion of climate- positive spend in 2026-27, including £31.7 million of investment to make progress in Scotland’s transition to a circular economy.”
“We are pleased that the budget includes measures that will materially impact the day-to-day lives of families, giving every child in Scotland the chance to take part in a free sporting opportunity this summer, investing more in activity clubs and, from August next year, ensuring that all primary school pupils can access a free breakfast to start the school day. We know that the long-term prosperity of our country is reliant on our economic success. That is why the budget bolsters our support for businesses, people and place, with a package of non-domestic rates relief that is estimated to be worth more than £870 million in 2026-27 alone, and ensuring the lowest basic property rate since 2018-19.”
“It begins the necessary work to introduce a new Scottish child payment premium, which is estimated to benefit the families of around 12,000 children. As the cabinet secretary highlighted in her opening remarks, that investment is vital to our progress, but I ask members not to lose sight of the human stories behind it. We should all keep in mind the individuals whom we are supporting through this budget and the lives that we are all committing to making better through the decisions that we take in this chamber.”
“As a Government, the decisions that we have taken in this budget have been driven by our commitment to improve the lives of the people of Scotland today and into the future. That commitment reflects our values and, ultimately, shapes our priorities as a Government. Those priorities—eradicating child poverty, growing the economy, tackling the climate emergency and improving public services—underpin the budget. The budget was drafted with an eye on the upcoming tackling child poverty delivery plan, which will deliver further progress towards achieving our child poverty targets. It commits an additional £49 million to the tackling child poverty fund, taking the total to £61.5 million. It provides an extra £50 million to the whole family support package to support parents into sustainable employment and to help them to grow the economy.”
“Why would I not do so? Yes, being in Opposition means sometimes getting angry with the Government, but it also means taking any opportunity that you have to get stuff done. I took mine, and I hope that other members respect my motives for doing so. Some might even come to regret that they did not do the same. The Deputy Presiding Officer: We come to the open debate. We are already behind schedule, so I will keep members firmly to their speaking time allocation. 16:44”
“I spoke to UKHospitality—I know that there is deep unhappiness about what has happened with revaluations—which put out a statement after the draft budget. The chief executive said that the budget deal to secure extra business rates relief was “a good example of how the Scottish Parliament can make a positive difference to businesses, when political parties work together.” I agree with that, because we do not work together enough in the Parliament. When I leave the Parliament at the end of March and go back to the real world, I will meet our college leaders, young entrepreneurs, pub owners, hospice workers and staff at Aberlour. I know that they need more help, but I also know that I will have done everything that I can to squeeze every penny out of this Government within the limitations that being in Opposition affords me.”
“Will Jamie Greene give way? Jamie Greene: I will, in a second. Which members of my family who currently get the adult disability payment will no longer get it once those benefits have been cut? Which refugees in Glasgow do you want to make homeless? Who will you send home to face torture or death because they are gay? Which children in towns such as mine—Greenock—do you want to push back into poverty? Government is about choices, sometimes difficult ones, and I have disagreed with many of this Government’s choices over the years. However, if we have the opportunity or leverage to push the Government further, we should use it. I took that opportunity and I am not ashamed of it, because, ultimately, it does not matter how much we crow from the sidelines; what matters in politics is getting stuff done.”
“It is good to see that at least one promise has been followed through by this Government. The Deputy Presiding Officer: I am not entirely sure that there was a question in there, but I am sure that you will find something to say, minister. Ivan McKee: Jeremy Balfour’s comments are a testament to what can be done when there is a constructive working relationship across the Parliament to deliver for the people of Scotland. This Government is keen to engage with all members where we can work together to improve the lives of those whom we serve.”
“The Visitor Levy (Scotland) Act 2024 Amendment Regulations 2026 were laid in the Scottish Parliament on 9 January 2026. The regulations expand the list of qualifying benefits to include all forms of disability assistance that are provided under the Social Security (Scotland) Act 2018, a broader range of United Kingdom disability and war-related benefits and equivalent payments that are received under European Union/European Economic Area, Switzerland, Gibraltar, Northern Ireland or UK-Ireland social security arrangements where the recipient is resident in the UK. Jeremy Balfour: I thank the minister for that clarification and for all the work that he and his team have done to get the regulations on board. The regulations will make a massive difference to many families with disabled children.”
“I regret that there has been more of a delay than either of us would have wished, but can you say any more about the intent of any future Government to deliver on the responses in relation to such a levy? The Deputy Presiding Officer: Always speak through the chair. Ivan McKee: When we publish the information next week, the member will see the output from that consultation. I recognise the high levels of interest in the matter from island councils. Clearly, what happens after publication will depend on the format of the next Government and how it chooses to take the matter forward. The current Government is very interested in continuing discussions to see what potential there is to give that power to local authorities. The Deputy Presiding Officer : Question 3 comes from Rachael Hamilton, who joins us remotely.”
“The responses to the consultation on a cruise ship levy, which included a scoping question on a potential point of entry levy, will be published next week alongside the analysis report. heating. [Ivan McKee has corrected this contribution. See end of report.] Liam McArthur: I welcome the minister’s response. He will be aware that, in Orkney Islands Council and among stakeholders in the tourism sector, as well as in the other main island groups, there is a belief that the only way of making a visitor levy workable in an island context is through a point of entry levy. I look forward to seeing the results of the consultation that will be published next week.”
“16:49 On resuming— The Presiding Officer: The question is, that motion S6M-20844, in the name of Shona Robison, on the Scottish income tax rate resolution 2026-27, be agreed to. Members should cast their votes now. The vote is closed.”
“It would restrict the ability of revenues that are collected from income tax to help businesses and the people we all serve across the country because it would stall Parliament in moving forward with the budget. Considering the importance of the revenue that is collected, we hope that all members will vote positively for the motion, so that Scotland remains a great place to live, work, study and do business in. The Presiding Officer: That concludes the debate. The question is, that motion S6M-20844, in the name of Shona Robison, on the Scottish income tax rate resolution 2026-27, 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. 16:47 Meeting suspended.”
“They want to take part in the economic opportunities that are available in Scotland’s growing economy, compared with those in the rest of the UK, and they are very welcome to come and do so. Willie Rennie said that we never cut taxes but, in the previous budget, Scotland was the only place to have a 19 per cent tax rate. We increased the thresholds by significantly more than inflation for the lower tax bands. That is in contrast to the UK Government, which froze the bands across the piece. We are serious about raising more revenue, because we understand the impact that it has. We are focused on continuing to grow Scotland’s economy at a faster rate than the rest of the UK. Members should be clear about what not voting for the rates resolution would mean in practice.”
“Unemployment is at 3.8 per cent in Scotland versus 5.2 per cent in the rest of the UK. Scotland has consistently had the best-performing foreign direct investment for 10 years, and we are doing better than anywhere else in the UK, outside London, on that. As the cabinet secretary mentioned, we watch the impact of those changes closely, which answers Willie Rennie’s question. After the tax changes, we have been seeing the inward migration of taxpayers to Scotland, which has been continuing for quite a number of years. The trend is clear. People recognise that if they earn more they pay more tax in Scotland, but the range of benefits that they get for that more than outweighs the tax differential.”
“Ivan McKee: Well, I look forward to seeing their detailed proposals on where those savings would come from. Craig Hoy: What about your proposals? Ivan McKee: Our proposals have already been published, and they are very clear. Whatever the Conservatives propose would be in addition to that. Of course, the reality is that that would mean significant cuts to public services across the country. Craig Hoy made the comments that the Conservatives always make about Scotland’s economy, so I want to put him right on some of the facts. Last year and the year before—Craig Hoy’s party was in power at Westminster for part of that period—Scotland’s economy grew faster than the economy in the rest of the UK. The unemployment rate is consistently lower in Scotland and, according to the latest figures, the gap is widening.”
“The productive discussions that we have with colleagues and the agreements that we gain from them ahead of the budget reflect the fact that credible alternatives are always welcomed by this Government. The proposed budget will help and support families with the cost of living and provide a tax cut for some of the lowest-paid individuals while continuing to invest in meaningful public services that are used by families across Scotland. I turn to members’ contributions. We again heard Craig Hoy’s and his party’s position that they want to see another £1 billion or £1.5 billion—I cannot remember—on top of the £1.5 billion that we are already delivering in efficiencies. However, they have no idea where that would come from; they are just throwing numbers out there in the hope— Craig Hoy: That is not true.”
“Scottish Government analysis indicates that the changes will mean that more than 55 per cent of Scots— everyone earning less than around £33,500—are set to pay less income tax in 2026-27 than they would pay elsewhere in the UK. We continue to use every lever at our disposal to grow the economy, which creates opportunity for people across Scotland and increases our tax revenues. It is for other parties that propose uncosted tax cuts to explain how they would be afforded without running down the vital public services that many of the lowest paid in our society rely on. We have always been clear on the need for cross-party engagement on tax and spending.”
“I thank members for their contributions to the debate. I will speak to some of those shortly. Parliament is being asked to vote on a key policy that underpins the budget and will raise the revenue that is needed to fund public services and provide financial support to families across Scotland. Last year, we made commitments to provide stability and certainty on income tax for taxpayers and the business community in order to support our growing economy in Scotland, and the budget proposal delivers on that commitment. In all our income tax decisions, we carefully balance the need to raise revenue with the impact on individuals, households and the wider economy. The Scottish Fiscal Commission estimates that income tax will bring in £21.5 billion for the Scottish budget in 2026-27.”
“Craig Hoy: The programme may be called “Any Questions?”, but I will give him an answer: our proposal is fully costed. We will match our £1 billion in tax cuts by cutting the SNP’s ballooning benefits bill and taking an axe to the waste that the minister is incapable of removing from the civil service. We could fund our tax cuts—”
“Social security spending is heading for £10 billion by the end of the decade. Taxes are high because the SNP’s spending is reckless, but the Scottish Conservatives offer a real—and costed— alternative. We would cut income tax to 19 per cent for all taxable income up to the higher rate threshold, which would mean a saving of £444 a year for every taxpayer who earns more than £15,000, and we would uprate the higher rate threshold in line with inflation. Ivan McKee: Craig Hoy said that the Conservatives’ alternative was costed, but if he listens back to last Friday’s edition of “Any Questions?”, which I was on with his colleague Meghan Gallacher, he will discover that she made it clear that the Conservatives had not seen the numbers and that they were just making it up as they went along.”
“CBI Scotland has called the tax divergence between Scotland and the rest of the UK “a handbrake on growth”, while Sir Tom Hunter has said: “I have never heard so much disquiet among business leaders paying yet more and more tax for poorer and poorer outcomes”. Why are taxes in Scotland so high? Under the SNP, the state has grown out of control. Civil service numbers have gone up by 74 per cent since 2007. Last June, the Cabinet Secretary for Finance and Local Government pledged to cut the public sector workforce by 0.5 per cent, but, by September, we discovered that it had grown by 0.4 per cent. The Government has wasted £6.7 billion of taxpayers’ money in this session of Parliament—that is more than £1,200 for every person in Scotland. That is the cost of the SNP under John Swinney.”
“The Institute for Fiscal Studies calculates that, by 2028-29, someone in Scotland who earns £50,000 will pay £1,500 more than their equivalent in England— that is not a small amount of money—and that, by the end of this decade, one in three Scottish workers will be paying higher rates of tax. The economic consequences of that are now undeniable, which is why the budget is not only undesirable but unaffordable, as the IFS has repeatedly warned in increasingly alarmist language. Over the past decade, Scotland’s growth has lagged behind that of the rest of the UK by a cumulative £11 billion. The Scottish Fiscal Commission has confirmed that income tax revenues are up to £1 billion lower than they would have been had Scotland matched UK growth rates.”
“Craig Hoy: It is interesting that the cabinet secretary admits that the benefits of the Barnett formula give her more money to give teachers high salaries, which the Government then claws back in higher tax. The minister wants to talk about the facts. The simple fact is that those teachers were earning £9,000 below the higher rate threshold in 2018 and now they are £9,000 above it with the Government’s stealth taxes. Taxpayers in Scotland are now paying an estimated £1.8 billion more than taxpayers elsewhere in the UK. Combined with Labour’s national insurance increases, the SNP and Labour tax rises are set to cost the average full-time Scottish worker nearly £1,800 a year.”
“In 2018, a band 5 teacher was earning £9,000 below the higher rate tax threshold; today, that same teacher is earning £9,000 above it. Apparently, teachers and nurses are the people with the broadest shoulders in John Swinney’s Scotland. Shona Robison: Craig Hoy is one of the biggest jokers in this Parliament—he is not able to do the sums; £1 billion of tax cuts and extra spending commitments do not add up. Does he not recognise the fact that teachers and nurses in Scotland are earning more after tax than their counterparts elsewhere in the UK? Those are the facts, because of the funding put in place by this Government to support a deal for our public sector workers. Does he accept that or is he just in denial, with alternative facts?”
“Will the member take an intervention? Craig Hoy: I will do so in a moment. The strategy was cynically designed to engineer one headline, but members should consider what it has actually cost to produce that headline. The Government has committed £52 million to deliver a maximum saving for taxpayers of £32 per year. Independent analysts have called it “the smallest income tax cut in history.” Let us be clear that it is a joke from the SNP: a joke offering from a joke cabinet secretary representing a joke Government. However, that con trick conceals a real stealth tax raid on middle earners. By freezing the higher, advanced and top rate thresholds until 2028-29, the SNP is dragging hundreds of thousands more workers into tax bands that they were never meant to face—rates that were meant for the few but which are now being paid by the many.”
“The measures in the bill build on the existing framework that the Parliament agreed through the Visitor Levy (Scotland) Act 2024. Local government and tourism stakeholders sought a mechanism to raise revenue to support local infrastructure and services that are impacted by tourism, which is a desire that the Scottish Government very much supports. The 2024 act provided the discretionary power for local authorities to introduce a visitor levy on the purchase of overnight accommodation. This bill responds to stakeholder calls for effective and proportionate further measures to increase flexibility in designing visitor levy schemes.”
“Scotland benefits from having a significant number of first-class sectors that compete with the best in the world, including our world-renowned tourism sector. The Scottish Government is absolutely committed to working closely with the sector to support it and make it as effective as it can be in continuing to attract large numbers of visitors and in enabling those visitors to witness the fabulous culture, heritage and warm welcome that Scotland offers and to take advantage of the services that the tourism sector provides around our country. We continue to engage significantly with the sector across a range of measures to strengthen the provision for tourists visiting Scotland. In that regard, the Visitor Levy (Amendment) (Scotland) Bill was introduced to Parliament in January.”
“14:30 On resuming— Portfolio Question Time Education and Skills”
“The Scottish Government is putting £870 million into reliefs this year to support business with those increases. Rather than being in the situation that was indicated by Liam Kerr earlier, we are giving the hospitality sector more support in percentage terms than it is getting south of the border. As I outlined, the Government remains committed to ensuring that funding is distributed fairly and that it supports sustainable and high- quality services across Scotland, including in remote and rural communities. We will continue to work collaboratively with local authorities and NHS boards, and we will drive the reforms that are needed to improve outcomes for all our communities. The Deputy Presiding Officer: That concludes the debate. I suspend the meeting until 2.30 pm. 13:29 Meeting suspended.”
“Given that it has no chance of being in a position to make decisions in Government, it has the luxury of being able to call for contradictory things in debates. Karen Adam clearly laid out the reality of the situation at the national and local levels. In that regard, we were entertained by a bit of a dispute between Opposition parties on the position of seagulls—that was a piece of brief entertainment in the debate that broke up the monotony of the hypocrisy from the Tory party. [Interruption.] I already answered Liam Kerr’s question—perhaps he was not listening, or perhaps he was too excited about the speech that he made. With regard to non-domestic rates, in Aberdeen city, the total increase in rateable value is 7 per cent compared with a total increase of 12 per cent across Scotland.”
“In the 2026-27 provisional settlement, Aberdeenshire Council will receive more than £20 million in additional allocation based on rurality indicators, making it the authority with the sixth- highest such allocation per person. I will turn to some of the members’ speeches. There was no change in the typical approach from Alexander Burnett, Tim Eagle and other Conservative members. On the one hand, they call for £1 billion in tax cuts—Alexander Burnett opened his speech with a comment about Scottish tax rates. At the same time, they argue for increased resources to be provided to public services. It fell to Maggie Chapman to give the Tories a lesson in basic arithmetic and economics, and I am glad that she did. That shows the state that the Conservative Party is in.”
“Recognising that rurality is not taken into account, will the Government promise to do that in the future, to make sure that the funding formula is fair? Ivan McKee: I have identified that Aberdeenshire Council receives additional funding due to its rural nature. It is interesting to get it on the record that the Conservative Party is calling on the Scottish Government to overrule COSLA on matters that relate to local issues. Tim Eagle: That is not what I said. Ivan McKee: That is exactly what he said. I think that COSLA would have something to say about that. Under the two existing formulas, the additional cost of providing services in rural and remote areas is a key component in determining funding allocations.”
“If Alexander Burnett disagrees with any of the evidence that is used to make that calculation or if he believes that other evidence would merit inclusion in distribution considerations, I am sure that his points could be raised directly with COSLA, which makes decisions on the funding methodology. Tim Eagle: I want to focus on that point, because it is crucial. I came down to the Parliament in 2018 to discuss it with the then Cabinet Secretary for Finance and the Constitution, Derek Mackay. The problem with the COSLA funding formula is that it requires the entire COSLA body—all the council administrations—to come together and agree. The councils that do well out of the funding formula will never agree to reset it; therefore, the Government will need to step in.”
“Ivan McKee: I was just coming on to that point. The board was escalated to stage 4 of the NHS Scotland support and intervention framework in May 2025 in order to provide it with the support that it needs. The Scottish Government has set targets to improve the board’s position over the next three years, and the board remains on course to achieve those targets. With regard to local authorities, the Government has provided another real-terms increase in funding for the next financial year. We will continue to work with COSLA to ensure that our communities continue to receive the high-quality services that they expect and deserve. The grant- aided expenditure funding formula is agreed by COSLA leaders, and Aberdeenshire Council receives additional funding due to Aberdeenshire’s rural nature.”
“The NRAC formula is refreshed annually to reflect changes in population and service needs, including in remote and rural communities. That supports vital work to reduce health inequality and ensures that we continue to allocate funding according to the relative need for healthcare in each board area. In particular, in 2026-27, NHS Grampian will receive nearly £1.5 billion in baseline funding, which equates to an increased investment of £130.7 million compared with 2025- 26 and includes a 2 per cent baseline uplift of £28 million. NHS Grampian will also receive an additional £11.4 million to ensure that it remains within 0.6 per cent of NRAC parity. Liam Kerr: Among all the statistics that the minister is trotting out, let us get specific. How would he suggest that NHS Grampian makes a further £40 million of cuts next year?”
“It exceeds the health consequentials from the UK Government and provides a real-terms uplift, to ensure more sustainable and resilient services. In 2026-27, NHS boards’ baseline funding will increase, bringing a total investment of more than £17.6 billion—an average real-terms uplift of 1.8 per cent. We will also be fully funding pay deals in 2026-27. We recognise, of course, that it remains the statutory responsibility of NHS boards to achieve a balanced budget. As I mentioned, the NRAC formula is an objective measure of the need for healthcare services across Scotland. However, in addition, since 2012-13, the Scottish Government has provided more than £4 billion of additional funding to ensure that each territorial board remains within 0.6 per cent of NRAC parity.”
“Both the NHS Scotland resource allocation committee—NRAC— formula and the local government grant-aided expenditure distribution methodology provide objective, evidence-based methods for assessing the relative needs of services across the country. We recognise that strong and on-going partnership work is essential, and the Government remains absolutely committed to constructive engagement with local authorities, NHS boards, integration authorities, COSLA and local communities to ensure that reforms are co- designed and that funding decisions support sustainable long-term improvement and improve outcomes for the people and the communities that they serve. As I said, the draft budget that was recently introduced in the Parliament provides £22.5 billion of investment in health and social care services.”
“I will come on to members’ contributions shortly, but I will first cover off some general points. The Government recognises the essential role that local authorities and health boards play in delivering high-quality health and care services across Scotland, including in rural and island communities. That is why the draft 2026-27 budget provides a record investment of £22.5 billion in health and social care services. Since 2007, the Government has delivered a balanced budget and has taken steps to support the long-term sustainability of Scotland’s public services, despite significant inflationary pressures and increasing demand on services.”
“In addition, if Mr Kerr was listening last week, he would have heard that we have put in the budget another relief of 25 per cent on top of the 15 per cent reduction that hospitality businesses benefit from—that is a total of 40 per cent relief for hospitality businesses, which is more than such businesses in the rest of the United Kingdom receive. Population Health Framework 2.”
“The city is witnessing a tsunami of bar and restaurant closures, with many citing the Scottish National Party’s eye-watering business rates regime as a key cause. Will the minister give our pubs and hospitality businesses the breathing space that they need by backing the Scottish Conservative plans to exempt most of them from business rates entirely? Ivan McKee: As I have already indicated, the total increase in rates in Aberdeen is only 7 per cent across the three years since the last revaluation. The Scottish Government is already putting in a total of £870 million in rates reliefs for businesses across the country, including £320 million in transitional support over the next three years, to support businesses facing precisely those challenges.”
“Data showing changes in draft rateable values by council area can be found in an interim revaluation report on the Scottish Government website. Those statistics indicate a total increase in rateable value of 7 per cent for Aberdeen city, compared to 12 per cent across the whole of Scotland. The budget delivers a reduction in the three tax rates for 2026-27 and provides support through sectoral and transitional relief schemes, including the extended support for the hospitality and self- catering sectors that was announced at stage 1 of the budget bill. Liam Kerr: Today, Aberdeen is reeling following the announcement that, after decades of trading as community pubs, the Kittybrewster and the Brig ‘O’ Dee will join the ever-expanding list of pubs and hospitality premises that have closed.”