 The first item of business is portfolio questions, once I get myself organised, as you are. The first question is Andy Wightman, please. Mr Wightman. To ask the Scottish Government whether it will provide an update on what consultation is taking place regarding providing local authorities with the power to introduce a tourist tax. Cabinet Secretary. As announced by the First Minister on 1 October, we are taking forward an inclusive and transparent national discussion around issues related to tourism tax, working in collaboration with local government partners and the tourism industry to support an informed discussion. We are taking forward round-table discussions in the coming weeks and we will make the evidence gathered through the available and due course. Andy Wightman. I thank the cabinet secretary for his answers. Can he tell us when he expects those discussions to conclude? Can he also confirm that the question at the heart of the debate is actually two distinct questions, which are first, whether councils should have this fiscal power, and second, if they should use any such power in what circumstances and what rates should be set, etc? Does he accept that the first question is properly a matter for this legislature but the second is properly for local authorities to determine as they see fit? Cabinet Secretary. I think that the second part of the question is a bit premature because, of course, it relates to the outcome of the first part of the question, which is the issue in principle. I think that it is important that we take forward that discussion over the course of the next few weeks. I am very happy to be helpful to the member to write to Andy Wightman with the engagement programme that we have established. Mundo Fraser. Thank you, Deputy Presiding Officer. While Scottish tourism is doing well, Scotland is still seen as a high-cost destination in some quarters relative to other countries. The Scottish tourism sector has therefore raised a great deal of concern about the likely impact of a tourist tax in raising costs still further. As part of the work that the Scottish Government is doing, will there be an economic assessment as to the impact of a tourist tax? Derek Mackay. First of all, I think that the answer to the question is yes, we will do as much analysis as we possibly can so that we can have an informed discussion and engagement in that regard. I think that it is right to look at all the evidence, which is why it is important to engage with local authorities, as well as the hospitality sector, to hear their concerns, because they have a contrary view to those within local government in relation to the proposition that has come from local government. We are facilitating that national discussion. I understand the point that Mundo Fraser is making about the costs for the hospitality sector. One of those costs is VAT, which is being higher than most other parts of Europe in relation to hospitality. That, of course, is a matter for the UK Government, but in our gift of an on-domestic rates, which is why Kate Forbes's announcement on the on-going transitional relief for hospitality was so well received and an important intervention from the Scottish Government. Question 2, Bill Bowman. To ask the Scottish Government what its position is on taxpayers in Scotland retaining as much of their income as those in the rest of the UK in light of the proposals in the UK budget. The Scottish Government has consistently taken decisions to ensure that the Scottish income tax is progressive and raises the revenue that is required to support our vital public services and, indeed, the Scottish economy. We have ensured that Scotland has the fairest income tax system in the UK and will take income tax policy decisions on the basis of what works best for Scottish taxpayers, Scottish public services and the Scottish economy and will set out the details of our tax plans for 2019-20 in the forthcoming budget on 12 December 2018. Bill Bowman. I thank you for that answer. As was reported in the press last week, headteachers have warned the Scottish Government that a looming tax gap will further cripple the education system by making it hard to recruit school leaders. They raised that directly with the cabinet secretary, John Swinney, last week. There has been a shortage of applicants already due to a decline in salaries, a rising workload and stress. When combined with the increase in higher tax thresholds that we see south of the border but do not benefit from in Scotland, is there any wonder that they struggle to fill those roles? Can the cabinet secretary confirm what fiscal action he will be taking to help to solve this shortage of headteachers in Scotland? Cabinet secretary. I will propose to invest in schools, invest in education and hopefully arrive at a satisfactory pay deal for teachers as well and to achieve those kind of outcomes because we have to make decisions on revenue raising also, so we will take a fair and balanced approach. I think that the teaching profession should be an attractive one to bring people of quality and talent into the profession, and I think that teachers would far prefer quality rather than a race to the bottom on tax cuts. I refer the member to what Larry Flanagan said from the EIS union that there should be a fair and progressive taxation that contributes to the resources that we would have available for education. Kenny Gibson. Can the cabinet secretary advise what the impact of the chancellor's decision to increase national insurance contributions will be on low and middle-income earners? Is he concerned that at least some MPs who represent Scottish constituencies are classed as English taxpayers, depriving Scotland of around £20,000 in income tax revenue per MP? Does he agree that all such MPs should register as Scottish domiciled taxpayers? I think that I will come to that second matter after I make the substantial point, which is that the chancellor did indeed sneak in the next change under the radar last week, with no mention of it in his budget speech. In contrast, the Scottish Government will take policy decisions on the basis of what works best for Scottish taxpayers, Scottish public services and the Scottish economy. Whatever choices we make, we will be clear and transparent, unlike the UK Government. Given the link between income tax and national insurance contributions, we believe that decisions on both should be taken by this Parliament with the interests of Scotland in mind. For that to happen, the powers over national insurance contributions should be in Scotland's hands, not Westminster's. As to the tax affairs and other interests of members of the House of Commons, I am sure that Kenny Gibson will be all over that and will give me the necessary information that I require to take that forward. James Kelly Does the Cabinet Secretary accept that under the Scottish Government's current taxation scheme it is unfair that a principal speech in language therapists earning £45,000 pays the same rate of tax as the managing director of Scottish Enterprise earning £135,000? Will he bring forward proposals in his draft budget to ensure that top-rate earners, like senior management at Scottish Enterprise, pay a fairer rate of tax and make a contribution to funding public services? I will bring forward a fair proportion at balanced budget that is in relation to tax progressive as well. I have set out the principles that we will follow in that regard. I genuinely look forward to the proposition that may come from the Labour Party in relation to income tax, whether it is the UK Labour Party, the Scottish Labour Party or the future branch of the Scottish Labour Party, whatever it happens to be. I look forward to that coherent alternative budget, but what I will bring forward will be a competent balanced budget. In relation to the top-rate of tax, we have had this debate a number of times. My objective is to raise tax in a responsible and proportionate way. If I had followed Labour's advice on the top-rate of tax, I would have generated less money for Scotland's public services. What would the point in that be? Therefore, I will take an evidence-based approach to income tax. To ask the Scottish Government when air passenger duty will be fully devolved. As the Cabinet Secretary for Finance, Economy and Fair Work informed Parliament on 1 June 2018, the introduction of air departure tax will be deferred beyond April 2019. The Scottish Government has been clear that a resolution to the Highlands and Islands exemption issue has to be found before ADT can be introduced in Scotland. We cannot simply continue the current APD provision when there is an unresolved issue of EU law. I thank the minister for that answer. Will the minister commit to fulfilling her manifesto pledge at reducing air passenger duty when it is devolved by 50 per cent by the end of this Parliament? We remain committed to reducing air departure tax, and we want to abolish it altogether when resources allow. However, we will set out our plans on tax rates and bans once a solution to the Highlands and Islands exemption has been found. That is of paramount significance. The member might want to note that it is up to the UK Government, who is the member state to notify the EU on that issue. Would it not be sensible to use this extra time that the delay has given us to go back to square one with the Government's policy to do the proper research that has been lacking in the past so that we are no longer relying on the spurious, debunked figures that the Government has used previously and that we arrive at a policy that will reduce carbon emissions from aviation instead of increasing them? As the member will know, our climate change plan accommodates projected changes in aviation emissions. The Committee on Climate Change advised in September 2017 that such an increase is likely to be manageable. However, as I said to the previous member, we will set out our plans once a solution to the Highlands and Islands exemption has been found. That will be informed by the independent reports that we have commissioned, consultation and on-going stakeholder engagement. To ask the Scottish Government how much of its budget it has allocated to city deals. The cities in the regions are the engines of our economy. The Scottish Government is committed to working with all our cities to unlock investment, whether that is individually or collectively, and whether that is through a city region deal, one of the Scottish Government's devolved initiatives to stimulate growth and deliver infrastructure investment or a combination of those measures. The Scottish Government has consistently supported deals for all of Scotland cities, indeed all of Scotland coverage, and has a full partner in all of the city region deals agreed in Scotland. Considering the events of yesterday and continuing to look at the resources for city deals in-year, details for the forthcoming financial year 2019-20 will be updated in due course once the final budget has been determined. Ruth Maguire For that answer, in the UK Government's budget last week there was only a passing reference to the Ayrshire growth deal with a commitment to progress. Frankly, it is not good enough. Can the cabinet secretary reaffirm that this Scottish Government sees the Ayrshire growth deal as a priority and is committed and fully focused on investing in a full growth deal for Ayrshire that brings benefit to the whole region? Ruth Maguire Yes, I can absolutely agree with Ruth Maguire. The Scottish Government remains committed to securing a growth deal for Ayrshire. The cabinet secretary for transport, infrastructure and connectivity discussed the Ayrshire growth deal with the Secretary of State for Scotland when they met last month. He made clear the Scottish Government's intention to achieve ahead-of-terms agreement, clearly outlining the commitments of both governments to the deal as soon as possible. I understand that I will be meeting the Secretary of State this afternoon. I will raise the issue again with him, as well as, of course, the Tayside cities deal, where the UK Government should also step up to the plate and deliver more support for that region. Rhoda Grant Thank you, Presiding Officer. Can I ask about the proposed islands deal? When will the deal be in place and will it take account of the additional costs of providing goods and services in our island communities? Michael Matheson leads on city deals, notwithstanding the remarks that I have just made. The progress on the islands deal will be contingent upon agreement again with the UK Government and the island authorities themselves. We are working partnership with those stakeholders and those partners. Of course, we want to take it forward as quickly as possible, but we are also in the hands of others in terms of the asks that are made of that collective partnership. However, I would like to leave the chamber very clear that we are keen to get on with that particular growth deal. Richard Lyle To ask the Scottish Government if it will pass on any health consequentials received to its budget to Scotland's NHS. The Scottish Government will continue to deliver its commitment that all health resource consequentials will be passed on in full to the health portfolio budget. Every penny of health resource consequentials arising from the UK autumn budget will be passed on to the Scottish Government's health budget. Richard Lyle We know that the Tory's promised uplift for Scotland's NHS has already been cut by 50 million with the cumulative impact of over a quarter of a billion being held with health from Scotland's health service over the next five years. If it is in its budget, the UK Government failed to set out that further consequentials in years to come would not be cut further, leaving open the risk of further cuts. Can the cabinet secretary set out if he has any confirmation from the UK Government that that will not be the case? Richard Lyle I regret that no such confirmation has been given and, to add to that uncertainty, the Chancellor of the Exchequer raised the prospect of a new budget in the event of a no-deal Brexit. As the health secretary highlighted last week, that increases the significant uncertainty that is faced by our NHS staff on top of the uncertainty among the very valuable members of our healthcare workforce who are European Union nationals. I continue to urge the UK Government to provide the level of clarity that I have been requesting since June this year. Scottish Government action is being taken to help boost the Ayrshire economy. The Scottish Government and its agencies are taking a wide range of actions to help boost the Ayrshire economy. Central to our ambitions for Ayrshire is an agreement of a growth deal. We will continue to work with the regional partners on their investment proposals and hope to be able to announce our heads-of-terms agreement as soon as possible following the conclusion of negotiations with the UK Government that I have referenced earlier. Kenneth Gibson I thank the cabinet secretary for that answer. When does he anticipate that the UK Tory Government will finally sign off on the Ayrshire growth deal? They have dragged their feet on for the last two years. How much does the Scottish Government expect the UK Government to contribute? Will inclusive growth be delivered across Ayrshire, given that there are concerns to date at the North Ayrshire Council, so that it has not included the Garnock Valley in its own proposals? Unfortunately, the Scottish Government cannot control the pace at which the UK Government makes decisions. It seems somewhat preoccupied at the moment, but let me be clear that the Scottish Government is ready to move forward towards signing a heads-of-terms agreement with the Ayrshire growth deal as soon as possible. Local partners, as Kenneth Gibson has said, want fresh and transformative investment in the Ayrshire economy, and so does the Scottish Government. Clare Adamson I ask the Scottish Government how productivity and the economy can be supported through innovations in technology. We are working to ensure that innovation and technology drive sustainable economic growth, and, as poised of outcomes for Scotland's people, I set in our recent economic action plan. The plan covers key enabling technologies for Scotland to have strength, such as quantum, digital and automation, to ensure that Scotland's industrial basis is equipped to embrace new technologies through investments such as the National Manufacturing Institute for Scotland and the Medicines Manufacturing Innovation Centre. By investing in those emerging technologies, Scotland will create new high-value jobs with increased productivity. Clare Adamson I thank the minister for that answer. He will be aware of areas where Scotland is leading in innovation and technology, such as the Hutton Institute, Vertical Farming. Is that not just important for Scotland's future economy, but has the potential to tackle food shortages and work towards achieving UN global sustainable development goals? Indeed, world-leading projects such as the Vertical Farming Demonstration Building at the James Hutton Institute do indeed have the potential to contribute to global challenges, such as food security. My colleague the Deputy First Minister was pleased to officially open the facility in August. The demonstrator, developed by Intelligent Growth Solutions Ltd, is arguably the world's most technically advanced indoor farm. It will assist the research and development of new crop varieties and technologies suited to vertical growth systems. Supporting innovations in the bio-economy and addressing environmental and food security concerns for industrial biotechnology, agri tech and animal health are opportunities highlighted in our life sciences strategy. To ask the Scottish Government how it supports small and medium-sized enterprises to contribute to the green economy. Through our resource-efficient Scotland programme, the Scottish Government offers a full package of support to small and medium-sized enterprises. That helps them to implement energy resource and water efficiency measures that cut their carbon emissions and running costs. We also help businesses to understand the opportunities that are available to them in the green economy supply chain through the energy saving trust. We help businesses to participate in the supply chain for energy efficiency and micro generation by providing training, capacity building and networking events. I thank the minister for that answer. Whether he recognises that former new towns in Scotland such as East Kilbride are well placed to contribute to the green economy, they have many small and medium-sized enterprises at the heart of innovation in the field. Can I also ask the minister to visit EK with me to meet and learn from many such relevant businesses and hear from them how they can contribute to Scotland's green aspirations? Let me, equally as a representative of a new town, concur entirely with Ms Fabiani's point. I believe that our new towns such as East Kilbride, Cymrinaldon and Ms McGuire's here, so I better mention Irvine as well, are very well placed to benefit by the measures that we put in place. We think of the green economy as we rightly should in terms of the measures that we are taking around energy efficiency and climate change, but we should also think of it in terms of natural capital. The new towns have a lot of green space in them as well, so they are very well placed in that regard. I would be very happy to visit East Kilbride with Ms Fabiani. Many thanks, Presiding Officer. To ask the Scottish Government how much its budget for social security is spent on mitigating the UK Government's welfare reforms. We expect to spend more than £125 million in 2018-19 on welfare mitigation and measures to help to protect those on low incomes. Gil Paterson, I thank the cabinet secretary for that reply. The cabinet secretary will be aware that the chancellor made the bold statement that the austerity is coming to an end. Given the fact that the analysis from the Resolution Foundation shows that over three quarters of the Tories planned 12 billion of welfare cuts remaining in government policy and the budget failed to halt the roll-out of the universal credit or the end of the hated two-child cap, can he confirm that this is not the case and does he foresee the Scottish Government having to continue to set aside money to correct the worst aspects of those cuts? Cabinet Secretary. Well, clearly, the UK Government budget did not signal the end of austerity. The cuts to welfare will still be felt despite the announcements that the Prime Minister had previously made. They could have made a different choice for holding £15.4 billion in reserves. As a chancellor describes at his post Brexit deal, firepower, I would have suggested that they put that resource in to protecting public services, stimulating the economy and protecting the most vulnerable in our society. I have mentioned the figure of £125 million in the current financial year around welfare mitigation. That includes spending to mitigate the impact of bedroom tax, helping over 70,000 households in Scotland to keep a roof over their heads and sustain their tenancies. The Scottish Welfare Fund is a vital lifeline for people across Scotland, but there is only so much that this Parliament can do to protect the people of Scotland from a right-wing, pernicious Tory government. That is why we need more powers around welfare to fully protect the people of Scotland from the ravages of a right-wing government led by Theresa May. To ask the Scottish Government what analysis it has conducted regarding a timescale for reducing the large business supplement. We want to ensure that Scotland is the best place to do business in the UK, and all non-domestic rates decisions are made in light of that, and also of the budgetary context that reflects the budget allocations from the UK Government. The Barclay review recommended that the large business supplement be reduced to 1.3 pence in 2020-21 to bring it in line with the English rate, and sooner, if it becomes affordable to do so, we committed to reviewing the LBS at each future budget in light of affordability. John Scott. I thank the minister for her answer. As she said, the Barclay review recommended that the large business supplement be reduced by 2021, and that would significantly help the economy in air constituency. It would help the Scottish economy by £62 million. Can the Scottish Government give a timescale for implementing the reduction? I would be grateful if that could happen. Any announcement on non-domestic rates will be set out in the Scottish budget in December, but we have focused on supporting small businesses and ensuring that Scotland is a competitive place to do business. We have already taken forward some of the Barclay recommendations and established measures that are unique in the UK, such as the growth accelerator, which applies to large and small businesses to ensure that Scotland is a competitive place to do business. To ask the Scottish Government what impact assessment is undertaken of the long-term effects on the economy of stockpiling goods and commodities. The latest Scottish Government's State of the Economy report sets out analysis on the impact of businesses' stockpiling in advance of the UK leaving the EU in March 2019. The analysis shows that, overall, between 2018-19 and 2021-22, the activity has a negative impact on Scottish GDP growth of around 0.2 per cent. The fact that businesses are having to consider stockpiling underlines the uncertainty that Brexit is placing on our economy, we will continue to argue that the only deal that we will deliver for Scotland is to remain in the single market and in the customs union. Thank you, Presiding Officer. I am grateful to the minister for his reply. The British Retail Consortium, with a weather eye on Brexit, has condemned the idea of stockpiling, saying that it is not practical for two reasons. It does not have to spare capacity and is impractical to store fresh produce. Does the minister agree? I think that the key point here is the uncertainty that is caused by the UK Government's actions on Brexit. I am sure that there will be situations where stockpiling is required to ensure that essential supplies are in place to deal with uncertainty, but I agree with the member's general point that, in general, it is not good for the economy to stockpile excessively and it is not good for individual businesses to do so either. To ask the Scottish Government how the UK budget will affect Scotland's equalities budget. Following the UK budget, the Scottish Government's resource block grant from the UK Government, the money that we are able to invest in day-to-day public services, remains almost £2 billion lower in real terms next year compared with 2010-11. For 2018-19, we increased our budget for specific equality activities by 12 per cent to £22.7 million. That supports work to prevent discrimination, promote human rights and build more cohesive communities. Decisions on the budget allocation for equalities-related activity for the next year will be taken as part of the process to develop the Scottish budget, which will be presented to Parliament on 12 December. Mary Fee. I thank the cabinet secretary for that answer. This Parliament is a human rights garden torn, and that should be a bullwalk against regressive austerity-driven economic policies. I ask the cabinet secretary what direct action he will take to ensure a holistic approach that is taken to equalities, with focused joint work across portfolios to ensure the best outcomes for equalities spend. I think that that is a really important question and point that was made by Mary Fee. The community secretary thinks that it is appropriate that the community secretary leads on that work, considering her responsibilities, but I will be absolutely aligned across the Government to make sure that there is that cohesive focus on the equalities agenda and that the resources are there to support that work. Thank you, Deputy Presiding Officer. To ask the Scottish Government how much has been raised by the large business supplement since 2016. The large business supplement has raised a total of £381 million since 2016. Dean Lockhart. I thank the minister for that response. According to a recent written answer from the Scottish Government, businesses in Scotland have paid £200 million more in rates as a result of the SNP's decision to double the large business supplement in 2016, and figures released today show that there are now 9,000 fewer businesses in Scotland compared to last year. Does the minister recognise the damage that the SNP's large business supplement is having on Scotland's business base? I do not recognise that at all, because Scotland is a very competitive place to do business, and we are seeking to ensure that it is even more competitive than it can be. We are focused on supporting small businesses in particular, and the small business bonus scheme is significantly more competitive than reliefs for small businesses anywhere else in the UK. The average value of relief that is received by businesses in Scotland is more than £4,500 in 2018-19, while the comparable figure in England is less than £4,000. We have also got unique initiatives, as I mentioned to his colleague in terms of the growth accelerator, which supports businesses that want to grow and improve their premises. Just last week, I announced that I would extend transitional relief to the next evaluation in 2022, capping annual rates increases at 12.5 per cent in real terms for all but the largest rate payers in the hospitality sector, and offices in Aberdeen and Aberdeenshire. We have a very competitive rates regime. To ask the Scottish Government what its response is to the analysis of the UK budget, which states that the announced changes to tax overwhelmingly benefit the richest households. My response is—I covered this in some detail last week—that it tells you everything that you need to know about the Tory party. Of course, in relation to the Labour Party, it is a strange proposition that the Labour Party and the Westminster Parliament are going to copy the Tory's tax plan. However, for the Scottish Government, we have set out the key tests and the principles that we will follow in approaching the income tax discussion. Any change should raise additional revenue to support our public services, protect lower-earning taxpayers, make the system more progressive, and when considered alongside our spending proposals, support the Scottish economy. That is the key test that I set out last year in relation to income tax, and I think that there are tests that we will stand by. Willie Coffey. I thank the cabinet secretary for that answer. Given that almost half of the announced tax cuts will go to the top 10 per cent of households alone, does the cabinet secretary not think that it is disgraceful that the better off gets tax cuts at a time when those on low incomes continue to face hardship, and even more disgraceful that such a move would be supported by the Labour Party? As I have said, it is strange that the Labour Party is supporting the Tory's tax plans. In Westminster, the branch office in Scotland will propose something different at the budget processes that we work our way through in Scotland. It is true to say, as Willie Coffey has done, that on tax it is the richest in society and it will get the biggest benefits. Disproportionaly, for those at the top end, rather than basic rate taxpayers on welfare, continue to hammer the most vulnerable in society. It really is Robin Hood in reverse that we have from the Tories. It is an outrageous position at this point in time that, even through all that, the UK Government is sitting on reserves. £15.4 billion of fiscal headroom could have used to support the most vulnerable in our society, stimulate the economy and take us more constructively through the difficulties that they have created through their economic mismanagement. Given that the cabinet secretary is concerned for those on lower incomes, will he take this opportunity to welcome the latest rise in the personal allowance, which will benefit the typical basic rate taxpayers by at least £130 a year, which has since, since 2010, taken millions of people out of paying income tax altogether? Cabinet secretary, I think that Tom Mason should maybe take a closer look at the whole package of tax cuts that the Tories are proposing. Indeed, they are taking through Westminster. There is the richest in society, the top decile that benefits the most as a consequence of the income tax changes. Of course, I support actions that support low income earners. That is exactly what we will do in supporting that workforce and those income tax payers through our proposals. However, I cannot welcome the Tory tax plan, because it gives tax cuts to the richest in society, while expecting everyone else to carry the burden of austerity. It is not fair, it is not right and it is not progressive. To ask the Scottish Government what analysis it has carried out of the impact of proposals in the UK budget on the lowest fifth of households in Scotland in light of the comment by the Resolution Foundation that it will overwhelmingly benefit richer households. That is accurate reporting from the Resolution Foundation, whose analysis of the 2018 budget shows that the UK Government tax and benefit policies are strongly regressive. Looking at the overall effect of the UK Government tax and benefit policies put into place since May 2015, it estimates that the poorest fifth of households are expected to be an average £400 a year worse off, while the richest fifth are expected to gain an average £390 a year. It is absolutely outrageous. While I recognise that universal credit is not something for which the Scottish Government is responsible, will the cabinet secretary join me in welcoming the fact that in Scotland people on lower incomes pay less tax than is the case south of the border? Is that something that he hopes and is working to continue into the future? For a majority of people, Scotland is the lowest tax part of the UK, but we have delivered an income tax policy that is far more progressive. That is what I would continue to aspire to, a more progressive system of income tax. In relation to universal credit, the UK Government should have stepped back from the appalling implementation of universal credit, which is harming so many people in our society and pushing many families towards food banks. To ask the Scottish Government what analysis it has carried out of what impact uncertainty regarding Brexit is having on business investment decisions. The Scottish Government's state of the economy report, published in January this year, set out analysis on the impact of the uncertainty from Brexit on the Scottish economy, with results showing that the short-term impact is estimated to potentially reduce at the further level of business investment in Scotland by £1 billion by 2019, to increase the level of unemployment by around 0.8 per cent each points by 2019, equivalent to around 21,000 fewer jobs in Scotland, and to lead to lower GDP growth by around 0.3 per cent each points cumulative over 2018-19, equivalent to around £200 per household in Scotland. Furthermore, negative consumer confidence adds another layer of uncertainty, which could potentially further weaken the economy. I thank the minister for that answer. In last weekend's Sunday times, over 70 business leaders, including former chairs of Marx and Spencer's, Chainsbury's and BT, signed a letter calling for a people's vote. On Monday, compelling polling evidence demonstrated that the entire UK population has turned against Brexit. Does the minister agree with me that now is the time for the UK Government to end its false choice between a bad Brexit and a catastrophic nodial Brexit and commit to remaining in a single market and customs union? Yes, I do. The Scottish Government makes it very clear that the outcome for Scotland that makes the most sense if we are not going to be able to stay in the European Union is for Scotland or, preferably, the UK as a whole to stay in the single market and the customs union. That is the route that minimises the impact, the damaging impact that the uncertainty and economic consequences of Brexit are having on Scotland. To ask the Scottish Government what its position is on permanently linking the non-domestic rates poundage to the consumer price index. Minister. We are committed to maintaining a competitive and sustainable taxation environment while delivering sufficient resources to fund the public services upon which we all rely. The Scottish Government will outline the non-domestic rates poundage in the Scottish Government budget on 12 December. Thank you for that answer. The Scottish Retail Consortium has warned that not linking business rates to CPI next year would cost businesses £21 million extra. For south and north Lanarkshire alone, it would mean businesses paying about £3.5 million more. Will the minister commit now to permanently linking rate increases to CPI as the UK Government has done? As the member will know, the £2819 poundage was capped at CPI, and that was something requested by business and supported by the Barclay review. From memory, I do not recall the member voting for that in our budget, so we will continue to listen to business as we develop our draft budget 2019-20 proposals and will confirm the non-domestic rates poundage rate alongside the draft budget as in previous years. I look forward to the member supporting whatever is in our draft budget. To ask the Scottish Government what action it can take to encourage post office limited in Scotland to offer full banking facilities and services to businesses and private customers in all its branches. The Scottish Government recognises the importance of post offices to consumers, businesses and communities across Scotland. Similar to the banking sector, post offices and postal services are reserved. We have made it clear to both the UK Government and the Post Office are limited. They have a responsibility to ensure that the availability of existing services is maintained throughout Scotland. We continue to fund citizens advice Scotland's research into post office outreach services and how consumers can influence the provision of those outreach services. Moris Corry I thank the minister for his reply. It is interesting to note that 95 per cent of UK residents live within one mile of a post office. 99 per cent of UK residents live within three miles of a post office. With the Allied Irish Bank being the banking partners with the Post Office Limited, according to the Scottish Post Office senior manager here in Scotland, it only requires the other 27 banks in the United Kingdom's Banking Association to give their approval. Will the minister now strongly encourage those banks to do so? Minister Yes, of course. I reiterate the point that this matter is reserved. We are limited in our ability to directly influence those matters, but, yes, I hear Mr Corry's call and would reiterate it and would encourage for banks to engage with the Post Office network to ensure that those services can be supplied. James Kelly To ask the Scottish Government how its forthcoming budget will impact South Lanarkshire Council. Minister Ocl authorities, including South Lanarkshire Council, will receive their needs-based formula share of the 2019-20 total local government settlement, which will be announced by the Cabinet Secretary for Finance, Economy and Fair Work next month. It will then be for South Lanarkshire Council to allocate the total resources available to them, which will determine the impact on the people of South Lanarkshire. James Kelly I thank the minister for that answer. In a previous answer, the cabinet secretary stated that he would compose his budget based on evidence. Will the minister and the finance team give appropriate weight to the evidence that was published yesterday by COSLA, arguing for a fair funding settlement and ensuring that councils such as South Lanarkshire are not downgraded and penalised as they have done on previous budgets put forward by the Scottish Government? Minister COSLA's case for a fair deal has been noted. The Cabinet Secretary for Finance and I met COSLA just last week in the latest of a series of meetings to discuss next year's local government finance settlement. However, this year's finance settlement was a case of treating local authorities fairly, despite the cuts to Scotland's resource budget from the UK Government. South Lanarkshire Council received £590 million in funding from the Scottish Government this year. We want to ensure that public services are supported and that our policy towards local authorities spending is to allow local authorities the financial freedom to operate independently. I congratulate you on getting through all the 20 questions. On behalf of all the back benches across the party. Not a point of order, Mr Wason. You have just given me a black spot. A short pause will remove it. Front benches, please, for the next item of business.