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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“At the root of this is the methodology that is being used for the current revaluation. The increases will come in from April and, unless something is done, more businesses will fold. What is the minister doing about engaging with the assessors on the methodology that is being used? If there are issues with the methodology, will he agree not to implement the increases that are coming as a result of the current revaluation until the methodology issue is resolved? Ivan McKee: The average increase for pubs over a three-year period is 15 per cent. The reliefs that are in place—there is £320 million over the three-year period for the transition reliefs, and next year’s estimated relief package is £864 million— will make a significant impact on the bills that businesses pay.”
“However, I again draw Murdo Fraser’s attention to the point that, despite the growing business base, total NDR take is now 6 per cent less in real terms, using CPI, than it was before Covid. We are taking less money in real terms from businesses through NDR than we were previously. With regard to UK consequentials, we have already made a commitment that we will pass on in full any additional reliefs for businesses that the UK Government announces. We have already had discussions with the NDR consultation group and organisations that represent businesses about how that would take place. Murdo Fraser: Overall take might well be down, but it is undoubtedly the case that some sectors, including hospitality, are really suffering at present due to the increases.”
“Such businesses are currently struggling with high costs and flat customer demand, so more businesses will simply close. We expect the Labour Government in London to announce a U-turn today on rates relief for pubs in England. In the past, the Scottish National Party Government has not passed on Barnett consequentials from rates announcements down south. Will it do so this time so that pubs in Scotland do not lose out once more? Ivan McKee: An extensive amount of data regarding the revaluation was published at the time of the budget, so Murdo Fraser can and should look at that data, which is set out by sector, to understand what it tells him. We will continue to engage with business organisations on any specific concerns that they want to raise.”
“If we include properties that are eligible for 100 per cent relief, such as small business bonus scheme relief, we estimate that net bills in 2026-27 will rise by significantly less than has been claimed, once all reliefs are taken into account. In fact, total NDR revenue is now 6 per cent less in real terms, using the consumer prices index, than it was before Covid, despite the increase in the number of businesses. Murdo Fraser: I dare say that the minister can engage directly with UKHospitality Scotland in disputing its figures. It says that the average pub in Scotland will see an increase of £36,523 over three years and that the average hotel will see an increase of £68,007 over the same period. Whatever the detailed figures might be, the fact is that any increases will simply not be affordable.”
“Although we appreciate the concerns that businesses have raised, particularly after the United Kingdom Government’s choice to increase employer national insurance contributions last year, we do not recognise the figure that Murdo Fraser has quoted. For example, public houses are expected to see an average increase in their overall rateable value of 15 per cent over the three-year period following the 2026 revaluation, while hotels are expected to see a 29 per cent increase over that three-year period. Gross bills are set to increase by less than that, due to a decrease in the basic, intermediate and higher property rates in 2026-27.”
“The budget strengthens our public services and invests in Scotland’s infrastructure and people. I thank members for their views and their on-going engagement in the budget process. I will watch with interest to see which format this particular debate takes in the next parliamentary session. The Deputy Presiding Officer: I call Michael Marra to conclude the debate on behalf of the Finance and Public Administration Committee. 17:02”
“I also recognise the comments that Michelle Thomson made about the importance of productivity. Growing the economy is a key focus of the Government, and productivity is a key metric in that regard. It is interesting that, over the medium to long term, Scotland’s economy, in relation to productivity, has grown at a significantly higher rate than that of the rest of the UK. The extra £70 million of investment in our colleges will support the skills agenda, which is critical to improving productivity. The Government is proud of this budget, which focuses on our four priorities— Finlay Carson: Will the minister take an intervention? The Deputy Presiding Officer: The minister is just concluding. Ivan McKee: If Finlay Carson had asked to intervene earlier, I would have taken an intervention.”
“It is important to recognise that the work of health colleagues on the service renewal framework and the operational improvement plans could deliver significant improvements in delivery by refocusing the existing considerable resources in the budget to make them more impactful. That is a very important point. I recognise the comments made by the convener of the Criminal Justice Committee. We are working to allow the Scottish Police Authority and the Scottish Fire and Rescue Service to hold reserves and expand their borrowing powers. Those rules sit with the UK Treasury, and the Scottish Government has been clear that we would welcome reform to improve flexibility in that regard and more widely across public services. I recognise the comments regarding how the SFRS could reform and refocus its activities.”
“It is really important that we are comparing apples with apples and not comparing documents from different points in the cycle. Those figures are all clearly set out in the Scottish budget, in table 4.15. I do not have time to go through inputs from every committee, but I will draw out some of the highlights. The intervention from the convener of the Health, Social Care and Sport Committee was very valuable, including the focus on prevention aspects. A huge amount of work has been done on that in health, and I have worked closely with health colleagues and officials on that work, particularly in the context of the two workstreams in the PSR strategy that focus on how we take forward prevention work in the budget. A tagging exercise will improve our understanding of that work as we continue to develop it.”
“Yesterday, when I asked Professor Graeme Roy about Shona Robison’s claim last week that there is a 2 per cent real-terms increase in the local government budget, he said that that was not the Scottish Fiscal Commission’s figure and that we would have to ask the cabinet secretary about that. He added that, under the current plans, the local government budget would be cut in real terms. Which is it—a 2 per cent increase or a cut? Ivan McKee: The overall settlement for local government will increase by £650.9 million, which is a cash increase of 4.3 per cent or 2 per cent in real terms compared with the 2025-26 budget. I acknowledge that £144 million for ENICs was added to the 2025-26 budget following the budget’s publication.”
“Ivan McKee: The Government’s position has been that there could well be merit in having a finance bill, and we are very happy to continue to engage with the Finance and Public Administration Committee, and others, on that, to see how that could work. Clearly, it would require quite a bit of re-engineering of the process, and we would need to understand exactly how that would be taken forward. However, that is a conversation that we are very comfortable with having. I will bring in Craig Hoy as he wanted to intervene earlier. Craig Hoy: I understand that the minister does not necessarily want to dwell on portfolio spending, but will he comment on local government spending this year and in future years?”
“A shift to talking more about prevention across silos and on outcomes is a necessary part of taking the process forward. On Douglas Ross’s remarks in his speech, I note that it is not up to the Government to comment; it is for the Parliament to decide and design how the budget debate takes place. However, that might provide an opportunity to focus more on some of the substantive issues that will increasingly come to the fore as we move forward to address the challenges. Liz Smith: The minister is making a case as to why we need a finance bill. It is so important that we can work across different portfolios and that all members in this Parliament can scrutinise that on a cross-party basis. Does the minister agree? The Finance and Public Administration Committee members are pretty unanimous on that.”
“Liz Smith: Will the minister take an intervention? Ivan McKee: I will finish this part and then come back, if that is okay. Likewise, shifting to a focus on preventative spending will necessitate an understanding of how spend in one area leads to savings in another. That direction of travel must accelerate, and it will raise additional challenges around tracking spend year on year and across budget silos. In the debate, committee conveners have, understandably, focused on inputs, but it is important to recognise that that is only part of the story. The reform agenda and the adoption of efficiency measures should deliver improved outcomes and improved service delivery without necessarily a corresponding or proportionate increase in input resources.”
“Although portfolio efficiency and reform plans demonstrate our progress towards achieving the 0.5 per cent annual workforce reduction, we have been clear that our approach is designed to protect and improve our front-line services. Our PSR strategy sets out much of that and commits us to activities such as exploring preventative budget approaches and the invest to save fund, in which a further £29.9 million will be invested in 2026-27, through the budget, to encourage and support efficiencies in our public sector. Some of today’s debate was about committees—rightly, from their perspective— focusing on their own portfolio interests and allocations. However, increasingly, the solutions will require reform that cuts across portfolio silos. Indeed, removing those silos is a key part of the reform agenda.”
“I will begin by reflecting the Government’s—and my personal—commitment to reforming our public services so that they are fit to deliver the quality of service that the people of Scotland rightly expect, within the resources that are available. The Finance and Public Administration Committee and the Local Government, Housing and Planning Committee both referenced the public service reform strategy. We know that PSR is essential to fiscal sustainability. Achieving that will require workforce reductions, a reshaping of the workforce, considered pay policies, smart use of technology, a shift towards prevention, and more efficient joined-up services. Indeed, achieving that will require the whole Christie agenda.”
“On 13 January, the Government set out a budget that supports our four main priorities: eradicating child poverty, growing the economy, tackling the climate emergency and ensuring high- quality, sustainable public services. Alongside the budget, we published the Scottish spending review and the infrastructure delivery pipeline, which provide greater fiscal certainty and support long- term financial planning. In the debate, we have heard from committees on a wide range of issues, and I will take a few minutes to reflect on the discussion. Craig Hoy: Will the minister take an intervention? Ivan McKee: If I can make some progress, that would be helpful.”
“My appeal is that we do not repeat this debate in the next session of Parliament and that the Government learns the lessons that have been pointed out to it, not just by the Finance and Public Administration Committee but by a variety of stakeholders, who have put a lot of time and effort into making sure that they properly analyse this budget and future budgets. In order to do that job, they need the tools and the data, and they need the clarity that has been sadly lacking in this and previous budgets. 16:41”
“Last Thursday, for example, local government was left with the impression that it was getting a 2 per cent increase, but it transpires that it will get only a 0.4 per cent increase this year and a net reduction in real-terms budgets in future years, which is not putting it on a sustainable footing. It has also given people the impression that they will not get higher council tax bills down the line, but it is now quite clear from councils across Scotland that that will be the case.”
“That brings me to a subject that the committee has raised on several occasions and that the Government has in part addressed in this year’s budget, which is baselining and making sure that we are comparing apples with apples and pears with pears. We picked up some frustration yesterday from the Fraser of Allander Institute and the SFC in relation to the way in which the budget was presented. Ultimately, the budget statement, which the cabinet secretary made last week, should be about delivering for Scotland and not about delivering headlines for the SNP, yet the partial way that some of the data was brought forward should be a cause of concern.”
“Does Craig Hoy recognise that, given that long list of very significant and serious challenges, it is a testament to the finance secretary that she has managed to balance the budget yet again? Craig Hoy: She is balancing the budget by drawing down a whole series of non-recurring potential pots of money to fund recurring projects, with ScotWind being the latest attempt to try to balance the budget. Ultimately, however, we all know that the budget is unsustainable, as has been referred to throughout today’s debate. It is unsustainable—as we heard from Audrey Nicoll— for the police service, the justice system and the prison service. Equally, it is probably still unsustainable for the college sector, because, as we have seen, smoke and mirrors have been deployed in relation to funding for that sector as well.”
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“As I have already said, we are putting £320 million including into transitional reliefs for the three-year period and we are putting £864 million in total into reliefs in 2026-27. We can listen to the commentary from businesses and business organisations. Scottish Chambers of Commerce has said that “businesses can take heart from today’s Holyrood Budget, which offered firms immediate relief from rising cost pressures.” It also welcomed “measures such as NDR relief”. Those are words from business organisations that answer Roz McCall’s point and Murdo Fraser’s earlier commentary. This is the final edition of the Official Report for this meeting. It is part of the Scottish Parliament Official Report archive and has been sent for legal deposit.”
“As I have already said, we are putting £320 million into transitional reliefs for the three- year period and we are putting £860 million in total into reliefs. We can listen to the commentary from businesses and business organisations. Scottish Chambers of Commerce has said that “businesses can take heart from today’s Holyrood Budget, which offered firms immediate relief from rising cost pressures.” It also welcomed “measures such as NDR relief”. Those are words from business organisations that answer Roz McCall’s point and Murdo Fraser’s earlier commentary. Corrected text— Just to be clear on the facts, Roz McCall mentioned 10 per cent relief, but we have 15 per cent relief for retail, hospitality and leisure businesses.”
“I recognise that some parts of some sectors have specific challenges, and we continue to engage with those businesses and meet assessors to address those challenges where necessary. Corrected text— I have indicated what we are doing. We have £320 million including in transitional reliefs over three years and a total of £864 million in reliefs for businesses across the piece in 2026-27. I recognise that some parts of some sectors have specific challenges, and we continue to engage with those businesses and meet assessors to address those challenges where necessary. At col 17, para 6— Original text— Just to be clear on the facts, Roz McCall mentioned 10 per cent relief, but we have 15 per cent relief for retail, hospitality and leisure businesses.”
“At col 16, para 5— Original text— That is why the draft budget set out our plans to lower the basic, intermediate and higher property rates for 2026-27 and to provide transitional relief schemes that are worth more than £320 million to deliver support to businesses that need it. Corrected text— That is why the draft budget set out our plans to lower the basic, intermediate and higher property rates for 2026-27 and to provide reliefs including transitional relief schemes that are worth more than £320 million over three years to deliver support to businesses that need it. At col 16, para 7— Original text— I have indicated what we are doing. We have £320 million in transitional reliefs and a total of £860 million in reliefs for businesses across the piece..”
“Those are words from business organisations that answer Roz McCall’s point and Murdo Fraser’s earlier commentary. [Ivan McKee has corrected this contribution. See end of report.] We are very much focusing on working with businesses and business sectors to put in place steps to address some of the increases. Taking into account the reliefs package that we have put in place, that work is absolutely recognised across the piece as being a significant step by the Scottish Government. The Deputy Presiding Officer: Humza Yousaf joins us remotely for question 7. Budget 2026-27 (International Development) 7.”
“Will the Government agree to freeze non-domestic rates so that we can consider guidelines for the review and bring forward a joined-up approach to fair business taxation? Ivan McKee: Just to be clear on the facts, Roz McCall mentioned 10 per cent relief, but we have 15 per cent relief for retail, hospitality and leisure businesses. As I have already said, we are putting £320 million into transitional reliefs for the three- year period and we are putting £860 million in total into reliefs. We can listen to the commentary from businesses and business organisations. Scottish Chambers of Commerce has said that “businesses can take heart from today’s Holyrood Budget, which offered firms immediate relief from rising cost pressures.” It also welcomed “measures such as NDR relief”.”
“Roz McCall: Prior to the budget yesterday, five of Scotland’s largest business improvement districts, including the Stirling BID in my region, warned that England’s new permanent 10 per cent business rates discount will make Scotland “a materially more expensive place” to do business, putting at risk sectors that employ 457,000 Scots. The minister may well laud the meagre measures that are in the budget to support business, but, as the Campaign for Real Ale stated, “Transitional reliefs may sound good but if this Budget still means higher business rates bills than pubs are paying now then this will be the straw that breaks the camel’s back for many hard-pressed licensees.” On this Government’s watch, the current system is becoming an existential threat to our town centres, from all avenues. Where is the creative thinking?”
“As I indicated earlier, the draft budget ensures that the revenues that will be raised from non-domestic rates in 2026-27 will be 6 per cent lower in real terms than pre-Covid. That is an indication of the steps that we have taken to reduce the impact of the rates bill on businesses. About half of the properties in the retail, hospitality and leisure sector continue to be eligible for the 100 per cent small business bonus relief. A further 37,000 properties in the retail, hospitality and leisure sector that have a rateable value up to and including £100,000 could benefit from the new 15 per cent relief and the relief for islands. The budget guarantees that support for the full three years of the revaluation.”
“See end of report.] However, to take a step back and consider the numbers, the estimated revenues from NDRs next year will be 6 per cent lower in real terms than pre- Covid. That is a consequence of the steps that we have taken over that period to reduce the overall rates bill for businesses. As I said, the average increase across the three-year period was only just over 12 per cent.”
“The Campaign for Real Ale, the Night Time Industries Association and UKHospitality have all said that the reliefs that were announced yesterday will go nowhere close to meeting the extra costs that businesses will face as a result of the revaluation. What more will the Government do, or will it just sit there complacently and watch while businesses fail? Ivan McKee: I have indicated what we are doing. We have £320 million in transitional reliefs and a total of £860 million in reliefs for businesses across the piece. I recognise that some parts of some sectors have specific challenges, and we continue to engage with those businesses and meet assessors to address those challenges where necessary. [Ivan McKee has corrected this contribution.”
“Valuations are carried out by independent assessors. The average increase as a consequence of those valuations across businesses was 12.2 per cent over a three-year period. We recognise that, although some ratepayers will see their rateable values fall, a number will see significant increases, and we have met assessors and businesses to address those concerns. That is why the draft budget set out our plans to lower the basic, intermediate and higher property rates for 2026-27 and to provide transitional relief schemes that are worth more than £320 million to deliver support to businesses that need it. [Ivan McKee has corrected this contribution. See end of report.] Murdo Fraser: The reaction from business to that aspect of yesterday’s budget has been absolutely furious.”
“The strong funding position of the local government pension scheme as a whole might provide a good opportunity to support the growth of Scotland’s economy. In our programme for government, we committed to engaging with the LGPS to explore investment possibilities, and that work remains on-going. A720 Sheriffhall Roundabout (Grade Separation) 2.”
“The fund is estimated as being 174 per cent funded at March last year. Will the minister clarify whether there is a procedure to allow councillors to release excess funds while not affecting the pension fund’s ability to meet its targets, as that money in the local government system could be better used at this time to allow councillors to invest in local opportunities? Ivan McKee: I understand that the pension scheme regulations allow for a revision of contribution rates after they have been set but that that would require a change to the administering authority’s funding strategy statement. It would be for the Strathclyde Pension Fund committee to decide whether that would be desirable and achievable.”
“The Scottish Government has not discussed employer contribution rates in the local government pension scheme with COSLA or Strathclyde Pension Fund. Rates are a matter for the administering authorities and are certified by their actuaries at each fund valuation. Following the 2023 valuation, SPF informed its local authorities of a three-year package of rates that would be payable from 2024-25. The rate for 2024-25 and 2025-26 was a significantly reduced 6.5 per cent of pensionable payroll, with a rate of 17.5 per cent applying in 2026-27. Rates certified following the 2026 valuation will apply from April 2027. Stuart McMillan: The minister will be aware that Strathclyde Pension Fund has a working target to ensure that it is 100 per cent funded over the average future working lifetime of its active membership.”
“However, the UK Government has chosen to proceed with its own funding model. In October 2026, it will introduce a building safety levy in”
“The tragic events at Grenfell tower in 2017 shocked us all and highlighted the need to address the issue of unsafe cladding across all four nations of the United Kingdom. The Scottish Government has been clear from the outset that it will do what is right and necessary to fully address the challenge of remediating buildings that are affected by unsafe cladding. Last year, we published estimates for the cost of the cladding remediation programme, which suggested a funding requirement of between £1.7 billion and £3.1 billion over a 15-year programme of works. That will require a significant amount of capital investment, which will represent sustained pressure on our budget. Nevertheless, it is absolutely necessary that the work is taken forward. Initially, we called for a four-nations approach to cladding remediation funding.”
“Of course, the bills that businesses face are a consequence not just of the valuation but of the transitional reliefs and other reliefs— The Presiding Officer: Thank you, minister. Ivan McKee: —that are set by the sector, which will be announced in the budget. The Presiding Officer: Thank you, minister. Let us keep our questions and responses concise.”
“I met Stephen Montgomery and others in the sector on 22 December, and I met the Federation of Small Businesses on the issue just yesterday. There is also the Government’s NDR consultative group, which had its pre-budget meeting in November, and we will meet again immediately after the budget. I have met representatives of other sectors on the issue, too. I am very well aware of the situation regarding bills that individual businesses have received. There is a process for working through that with assessors, and I urge businesses and sectors to continue—as I know many of them have—to engage with assessors on the process of revaluation. We have set up an independent group under BJ Gill KC to look at the valuation methodology for the hospitality sector, and that group will report later this year.”
“The licensed hospitality sector supports 65,000 jobs, pays £1.2 billion in wages and generates more than £2 billion of economic value for Scotland. Despite the warning by Stephen Montgomery from the Scottish Hospitality Group that current outdated methodology will hit local hospitality businesses, and despite one of that group’s members facing a 550 per cent increase in their non-domestic rates, the minister still refuses to use the powers at his disposal. Will the minister commit today to making the changes that are needed to support our high streets? If not, how many empty shopfronts and lost jobs is he prepared to accept as the price of his inaction? Ivan McKee: It is not unexpected, but Roz McCall has hugely misrepresented the situation. The Government takes the issue very seriously and engages extensively with the hospitality sector.”
“Draft rateable values for the 2026 revaluation were published on 30 November last year, in advance of the revaluation, which will come into effect on 1 April. Valuations are produced by assessors, who are independent of central Government and local government. Non- domestic rates bills for 2026-27 will, of course, depend on the rateable value of the property, the tax rate that applies and any reliefs that the property is in receipt of. Decisions on non- domestic rates policy for 2026-27 are considered in the context of the budget, in line with other Government priorities, and will be set out on 13 January. Roz McCall: I note that the minister stated that the assessors are independent, but independence is not an excuse for indifference. Although assessors set the value, the Government can set guidance and policy.”
“At col 65, paragraph 2— Original text— I met the NDR consultative group on 22 November 2025— Corrected text— I met the NDR consultative group on 27 November 2025— This is the final edition of the Official Report for this meeting. It is part of the Scottish Parliament Official Report archive and has been sent for legal deposit. Published in Edinburgh by the Scottish Parliamentary Corporate Body, the Scottish Parliament, Edinburgh, EH99 1SP All documents are available on the Scottish Parliament website at: www.parliament.scot Information on non-endorsed print suppliers is available here: www.parliament.scot/documents For information on the Scottish Parliament contact Public Information on: Telephone: 0131 348 5000 Textphone: 0800 092 7100 Email: sp.info@parliament.scot”
“The group continues to explore how the non-domestic rates system can best support business growth, investment and competitiveness while acknowledging the important role that income from non-domestic rates plays in funding public services. Local authorities ultimately retain all their non- domestic—”
“The Deputy Presiding Officer: I can give you some time back. Fergus Ewing: I am grateful to the member for taking an intervention. If those increases go ahead, even if they are ameliorated with a modest level of relief, thousands of businesses—perhaps tens of thousands—will close. Has the minister had any assessment from officials of whether the overall revenue would reduce because of the total loss of revenue from tens of thousands of businesses that simply would not be able to continue trading? Ivan McKee: The Scottish Government does extensive analysis of the impact of all our fiscal policies. The point about engagement with businesses is hugely important. Our engagement includes the non-domestic rates consultative group, which I chair and which met immediately following the UK budget.”
“In recognition of the challenges that are faced by the hospitality sector, we have offered specific relief for eligible properties in that sector in 2025-26. We also have the most generous relief package for the energy-generating sector in the UK. Among the unique reliefs that are available only in Scotland are the business growth accelerator, fresh start and day nursery reliefs, which are targeted at specific aspects of the Scottish economy. We recognise that thriving businesses are key to growing the economy, and we engage and communicate regularly with businesses, business representatives and trade organisations on a wide range of issues, including regulation, investment and non-domestic rates. Fergus Ewing: Will the minister take an intervention? Ivan McKee: Will I get the time back, Presiding Officer?”
“As of June 2025, that scheme had awarded relief to 116,000 properties, reducing their non-domestic rates bills by more than £247 million. Rachael Hamilton: I draw members’ attention to my entry in the register of members’ interests. Has the Scottish Government done any analysis of the number of businesses that will be tipped over the small business rate threshold, with the result that the Government will not have that flag to fly any longer? Ivan McKee: That will depend on the decisions that are taken with regard to the Scottish budget for next year. We do extensive analysis of the impact of the policies that we take forward. We have estimated that, taken together, around half of the properties in the retail, hospitality and leisure sectors continue to be eligible for 100 per cent small business bonus scheme relief in 2025-26.”
“I am pleased to open the debate for the Government. It is a hugely important topic, on which we have had extensive discussions with businesses, not just recently but over a sustained period of time. It is very important that the Government engages with businesses across a range of sectors to understand their perspective on the issue. The 2025 Scottish budget maintained a competitive non-domestic rates regime, which has meant that Scotland has had the lowest basic property rate in the United Kingdom for the seventh year in a row, and it provided a package of reliefs to support businesses and communities that, this year, are estimated to be worth £730 million. That includes the small business bonus scheme, which is the most generous scheme of its kind anywhere in the UK.”
“Ivan McKee: If the member read the work that we have already published—the fiscal sustainability delivery plan and the medium-term financial strategy—he would find that the answers to that are clear. Unlike Conservative or Labour United Kingdom Governments, the Scottish Government manages to balance its budget every single year. Our income tax policy balances the need to raise revenue with investment in health, education and social care. Households in the lower half of the income distribution are on average about £450 a year better off under Scotland’s tax and social security system.”
“Our estimates show that Conservative income tax asks would cost the Scottish budget more than £1 billion in 2026-27. That is the difference between maintaining essential public services and making deep cuts to the everyday support that people rely on. We are always willing to work constructively across the chamber, but that requires that proposals are credible, that they add up and that members are honest about what they would mean for services and for the households that depend on them. Craig Hoy: If we come forward with fully costed proposals to meet the cost of our tax cuts, will the minister come forward with fully costed proposals to find the £10 billion that the Government intends to pay in welfare by the end of the decade?”
“Let me begin with a point of consensus. We all want to ease the pressure on household budgets. Across Scotland, people are still feeling the strain of the cost of living crisis. Prices remain high, energy bills are still elevated and household budgets are stretched. Inflation may be easing, but the impact of years of rising prices remains. The Scottish Government understands that reality, and our priority is to support people with fairness and responsibility. I will focus on three things—the Conservative proposal and its implications, our current income tax policy and the principles behind it, and the practical action that the Scottish Government is taking to support households across the country. I will turn first to the Conservative income tax plans. Russell Findlay recently wrote to the First Minister about those.”