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MSPs set for first formal vote on Scotland's budget bill SNP and Greens strike deal ahead of Scots budget vote
(about 11 hours later)
MSPs are to hold their first formal vote on the Scottish government's budget bill. The SNP and Greens have struck a deal ahead of the first vote on the Scottish budget, it has been confirmed.
With the SNP a minority government, Finance Secretary Derek Mackay has held talks with opposition groups in a bid to win backing for his plans.With the SNP a minority government, Finance Secretary Derek Mackay has held talks with opposition groups in a bid to win backing for his plans.
The Scottish Greens have asked for changes, but indicated they are "not willing" to bring down the bill. It is understood the Scottish Greens have done a deal based on changes to the threshold for the 40p rate of tax.
Mr Mackay has said he was "confident" of finding "common ground" to get his proposals passed. The agreement is also understood to increase the level of spending on local government services by about £160m.
Mr Mackay had said he was "confident" of finding "common ground" to get his proposals passed. After the deal was confirmed, he said it was "good news for the economy, taxpayers, communities and public services".
The full details will be announced at Holyrood on Thursday afternoon.
Members will debate the draft budget before voting on whether they agree to the general principles set out in the bill.Members will debate the draft budget before voting on whether they agree to the general principles set out in the bill.
Previous votes on the budget proposals and on taxation have failed to find any consensus between the parties. Previous votes on the budget proposals and on taxation had failed to find any consensus between the parties.
However, a deal with the Greens appears likely after co-convener Patrick Harvie said he was "not willing" to see emergency cuts to services in the event of the budget not passing. A deal with the Greens appeared likely after co-convener Patrick Harvie said he was "not willing" to see emergency cuts to services in the event of the budget not passing.
Mr Mackay has been holding detailed negotiations with the Greens and Lib Dems, having all but ruled out a deal with the Conservatives or Labour. Mr Mackay had been holding detailed negotiations with the Greens and Lib Dems, having all but ruled out a deal with the Conservatives or Labour.
He said he was confident that the budget, which is of "huge importance to Scotland", would be agreed.He said he was confident that the budget, which is of "huge importance to Scotland", would be agreed.
Mr Mackay said: "I do not expect that all parties will agree with every aspect of the draft budget but there are large areas that should have unanimous support.Mr Mackay said: "I do not expect that all parties will agree with every aspect of the draft budget but there are large areas that should have unanimous support.
"This is a parliament of minorities and we must all recognise that compromise is the only way any party will be able to make good on the promises it made to the people of Scotland."This is a parliament of minorities and we must all recognise that compromise is the only way any party will be able to make good on the promises it made to the people of Scotland.
"I am confident that those who share that view will find the common ground needed to come to agreement, support this Budget and invest in our crucial public services.""I am confident that those who share that view will find the common ground needed to come to agreement, support this Budget and invest in our crucial public services."
The Lib Dems have asked for up to £400m in spending commitments for mental health, education, policing and transport, but have indicated that "the distance is too great" between the parties. The Lib Dems had asked for up to £400m in spending commitments for mental health, education, policing and transport, but later indicated that "the distance is too great" between the parties.
Leader Willie Rennie, who has said he does not fear a snap election, said the SNP had "just a few hours left to have a change of heart and make the significant compromises needed to build consensus". Leader Willie Rennie said: "Despite making considerable effort to engage in constructive talks with the Scottish government we are firm that if we do not see the changes we believe the country needs then we will vote against the budget.
He said: "Despite making considerable effort to engage in constructive talks with the Scottish government we are firm that if we do not see the changes we believe the country needs then we will vote against the budget.
"Brexit, slipping educational performance and the weakness in the economy shows the need for more action not less. That's why the government needs to change.""Brexit, slipping educational performance and the weakness in the economy shows the need for more action not less. That's why the government needs to change."
'Give ground' The Greens targeted changes to tax as well as more spending for public services.
The Greens have targeted changes to tax as well as more spending for public services.
Co-convener Patrick Harvie said his party was "making a strong case" to use Holyrood's tax powers to protect public spending.Co-convener Patrick Harvie said his party was "making a strong case" to use Holyrood's tax powers to protect public spending.
He told the BBC's Politics Scotland programme: "If parties just dug their feet in and said 'my way or the highway' then the whole thing would fall and we would begin to see emergency cuts being made to public services across Scotland.He told the BBC's Politics Scotland programme: "If parties just dug their feet in and said 'my way or the highway' then the whole thing would fall and we would begin to see emergency cuts being made to public services across Scotland.
"I'm not willing to see that happen, but I am entirely willing to put pressure on the Scottish government to give ground on the position that it's taken so far.""I'm not willing to see that happen, but I am entirely willing to put pressure on the Scottish government to give ground on the position that it's taken so far."
Meanwhile, a group of organisations including the Children's Commissioner and the Church of Scotland have come together to call for proposals to top-up child benefit payments by £5 to be included in the budget bill.Meanwhile, a group of organisations including the Children's Commissioner and the Church of Scotland have come together to call for proposals to top-up child benefit payments by £5 to be included in the budget bill.
The group has circulated a briefing around all MSPs, saying the move could reduce child poverty by 14% and lift 30,000 children out of poverty.The group has circulated a briefing around all MSPs, saying the move could reduce child poverty by 14% and lift 30,000 children out of poverty.
Scottish councils have also lobbied all MSPs to improve the settlement for local government.Scottish councils have also lobbied all MSPs to improve the settlement for local government.
'Student politics''Student politics'
The Scottish Conservatives have said they would be willing to support the budget - but only if the SNP are willing to scrap most of their tax proposals. The Scottish Conservatives had said they would be willing to support the budget - but only if the SNP were willing to scrap most of their tax proposals.
Finance spokesman Murdo Fraser said Mr Mackay should not "side with other opposition parties in hiking taxes for workers and businesses". saying he should instead "prioritise growth ahead of left-wing student politics".Finance spokesman Murdo Fraser said Mr Mackay should not "side with other opposition parties in hiking taxes for workers and businesses". saying he should instead "prioritise growth ahead of left-wing student politics".
Scottish Labour meanwhile have tabled an amendment for the debate calling for increases to income tax, and a new 50p rate for earnings above £150,000. After the deal was confirmed, he called it a "lurch to the left", with a choice to "embrace the anti-business, anti-growth agenda of the Greens".
Scottish Labour has tabled an amendment for the debate calling for increases to income tax, and a new 50p rate for earnings above £150,000.
Leader Kezia Dugdale said her party would not back any budget that cut funding from local services, calling her amendment a "positive alternative".Leader Kezia Dugdale said her party would not back any budget that cut funding from local services, calling her amendment a "positive alternative".
If the budget passes stage one in the chamber, with the general principles of the bill approved, then it will be debated at committee level the following week.If the budget passes stage one in the chamber, with the general principles of the bill approved, then it will be debated at committee level the following week.
Stage three would see separate votes on tax and spending proposals in the chamber in the week beginning 20 February.Stage three would see separate votes on tax and spending proposals in the chamber in the week beginning 20 February.
Analysis by BBC Scotland political reporter Philip Sim
As the unlikely duo of Lenny Kravitz and Rocky Balboa have both remarked, it ain't over 'til it's over.
Remember 2009? After last-minute talks, Green MSPs - including one Patrick Harvie - decided they couldn't back the budget after all, and it was defeated.
So the chickens have certainly not been counted - but a budget deal is looking distinctly likely.
Talks with the Lib Dems, who had seemed the early frontrunners to do a deal, have ground to a halt. There remains a nine-figure gulf between what Mr Rennie wants and what Mr Mackay is prepared to offer him.
The Greens have also asked a lot of Mr Mackay: they want him to change his tax plans, which for the most part he is quite firmly wedded to.
But there might be some wiggle room over tax thresholds, if not rates. And Mr Harvie appears to have accepted that scuppering the budget altogether would be politically unwise.
This is still just stage one - but with separate votes on tax and spending awaiting at the end of the process, Mr Mackay will have sought to strike a deal for the whole lot. Today should be an indicator of how the rest of the month will pan out.