 I cannot express strongly enough my disappointment at information about this afternoon's statement appearing in the media before being given to the Parliament. I have spoken to the First Minister and the Deputy First Minister to express my concern in the strongest possible concerns, and they have given me a category assurance that this information was not shared by the Government. In the interests of parliamentary scrutiny and so that members are not disadvantaged, I will allow the statement to be made so that full information about the budget is available to members, public services and the public. I am grateful to you for your ruling on this matter, but you may not be aware that, in the course of the last few moments, yet more information has been released by the BBC in relation to the contents of the budget statement. The BBC are advising us that the additional dwelling supplement of TTC is to be increased from 4 per cent to 6 per cent. They are also advising that there could be £500 million extra for local government. It is clear that there has been a comprehensive briefing from the Government to the BBC of the contents of this budget. This is now beyond a joke. This is not the first time that this Government has been caught spreading information to the media in advance of bringing it to this Parliament, disrespecting Parliament and its procedures. I ask you, if you would, to consider what further action might be taken against the Government in light of the further information that has now come to light. It is extremely important that we continue with the business in front of us. Given the delay that we have already experienced, I will look into the matters that Mr Fraser has raised at a later point. The next item of business is a statement by John Swinney on the Scottish Budget 2023-24. I am simply not going to speak if members will not give me the courtesy and respect of being quiet while I do so, each and every member of this chamber deserves that courtesy and respect. The Cabinet Secretary will take questions at the end of his statement and so there should be no interventions or interruptions. Let me say openly to Parliament what I have said to you privately in the welcome conversation that we have had, that at no stage has anybody been authorised on my behalf to brief information— Members, I think that it is extremely important that we hear one another. Let me reiterate what I have said to you privately, that at no stage has anybody been authorised to disclose any information that is contained within the budget statement on my behalf at any time. There is inevitably a large number of people who have to be involved in the preparation of a Government statement from the many officials that are involved, but across a whole range of different organisations. I give you my categorical assurance as a member of this Parliament, since its foundation in 1999 that no individual was authorised on my behalf to disclose any information. Excuse me, Mr Swinney. I simply will not have members shouting discourteous comments to one another across this chamber. Please remember that we are elected representatives elected by the people of Scotland, and I would ask all members to bear that in mind and to think about that with regards to their conduct in this chamber. In light of the understandable concern that you have on this matter, I unreservedly apologise to you for the situation in which you find yourself in protecting the integrity of Parliament and the ability of Government to explain its policy position to Parliament, which it is in the interests of ministers to make sure that we are able to do so. I would finally point out before I come on to the statement that, in the detail that Mr Fraser has just put on the public domain, some of that information is contained within the embargoed statements that I make available in advance to other political parties. I simply point out that those factors need to be considered within those hope places. Presiding Officer, the Scottish Government budget for 2023-24 takes place in the most turbulent economic and financial context most people can remember. War is taking place in Europe, leading to the suffering and displacement of millions of Ukrainians. As a result of the conflict, energy and fuel prices are surging. Inflation is now corroding our economy, having reached a 40-year high. If these challenges faced by countries around the globe were not enough, the United Kingdom has added to the turmoil by a disastrous approach to Brexit, which has damaged Labour's supply through the loss of free movement of people and undermined frictionless trade with our nearest markets. All of those difficulties have been compounded by the utterly catastrophic decisions of the United Kingdom Government in the September mini-budget, which have driven increases in interest rates and saddled the country with much higher debt, undermining the public finances for generations to come. In short, these are spectacularly difficult times in which to manage the public finances. These times require Governments to lead, to make choices, to decide what matters, and that is what this Government has resolved to do. As Parliament knows, those hard realities are not just about future years. I am wrestling with those challenges right now. Before I set out our financial plans for the forthcoming year, I must provide Parliament with an update on this financial year, given the extreme pressure that the Scottish Government budget faces at the present moment. As a result of soaring inflation, we have faced significant and entirely understandable pay demands from public sector workers. In response, we reallocated over £700 million more than originally budgeted to enhance pay uplifts to better reflect the increased cost of living and especially to tackle low pay. We continue to deal with the unforeseen but accepted costs of resettling refugees fleeing the illegal war in Ukraine. We have seen thousands of people in Scotland open their homes in response to war, an example of our country at its very best. Scotland will always play our part in supporting those fleeing conflict and persecution we have made and we are continuing to make financial provision to support Ukrainian resettlement costs. The public sector is not in any way immune to the rising costs of energy and inflation, placing additional real pressures on the value of our budget. As a result of those factors, in the autumn the Scottish Government had to make unprecedented reductions to our spending plans midway through the current financial year, totaling £1.2 billion. We had to do this because once a financial year commences and in the absence of borrowing powers to address in-year volatility or the ability to alter income tax rates midway through a financial year, we operate a largely fixed total budget unless the United Kingdom Government allocates any additional resources to Scotland. Despite repeated requests, no additional resources have been forthcoming for this year. The emergency budget review allowed us to meet the cost of increased public sector pay and provide further help to those most impacted by the cost of living crisis. Taken together, in 2223 the Scottish Government has allocated almost £3 billion to help mitigate the cost of living crisis in these difficult days. However, there are two key points that I must advise Parliament about in relation to the budget for this current year. Firstly, despite reductions in spending of £1.2 billion, the financial pressures are so great that I am still working in this financial year to find a path to fully balance this year's budget. Secondly, as a consequence of that issue, for the first time since this Government took power, I am announcing a budget today for the next financial year, assuming that we do not carry forward any fiscal resources from this year into next. For comparison, our budget for this year was underpinned by £450 million of resources carried over from the previous year. The absence of that carryover increases the scale of the financial challenges that we face in the next financial year. Our budget decisions take place against assessments of deterioration in the economy. I am grateful to the Office for Budget Responsibility and the Scottish Fiscal Commission for their engagement in our budget process. I am of course incorporating into the budget the projections made by the Scottish Fiscal Commission. The UK economy has already begun to contract. The OBR estimates that the UK has entered a recession that will last for over a year and see GDP fall by 2 per cent. The Scottish Fiscal Commission is expecting the Scottish economy to follow the UK into a recession in 2022, with GDP falling 1.8 per cent between quarter 1 2022 and quarter 3 2023. The commission forecast the recession to be similar in Scotland to the rest of the United Kingdom. According to the latest data published yesterday, inflation now stands at 10.7 per cent. Last month we saw inflation in the UK at its highest since 1981. Businesses and households are facing additional pressures from rising interest rates, with the Bank of Scotland base rate reaching 3.5 per cent today falling the largest increase since 1989. Real household disposable incomes are estimated to fall back to 2013 levels, the largest fall since records began. To compound matters, our labour market has also been experiencing shortages, in part driven by Brexit, as the economy has reopened from the pandemic. As the recession takes hold, unemployment is projected to gradually rise to reach a peak of 4.7 per cent at the end of 2024. In their November economic outlook, the OECD forecast that the UK will see the worst economic performance in the G20 other than in Russia in both 2023 and 2024. The calamitous choices made by successive UK Governments have made our economy weaker and put the public finances under tremendous strain. In November, the UK Government set out revised tax and spending plans in its autumn statement, an urgent attempt to repair the damage of the mini-budget. Whilst it has brought some improvements to our resource position for 2023-24, compared to the UK Government's published plans, our budget will still be lower in real terms than in 2021. The outlook for future years is looking particularly bleak in 2025-26 and 2026-27, the latter two years of the Scottish Government's resource spending review period. That is the economic and fiscal context in which the Scottish Government must make our choices for the forthcoming financial year. In formulating this budget, I have reached out to all political parties in this Parliament, to our partners in local government, to trade unions and to many stakeholders in the private, third and public sectors to hear their views. I am grateful to our partners in the Scottish Green Party for their constructive and collaborative approach as we have developed these tax and spending plans in line with our shared commitments in the Bute House agreement. There are four important factors relevant to considering our decisions set out in the budget today. Firstly, the enormous pressures on the public finances mean that, in some cases, it will take the Government longer to deliver on our plans. We will work with partners to minimise that effect. Secondly, the requirements for public sector reform set out in the medium-term financial strategy and the resource spending review will be ever more required in this context and the Government will set out further plans in due course. We will take forward an agenda consistent with the principles of the Christie commission with a significant emphasis on early intervention and prevention as we work to create person-centred public services. Thirdly, the significant increases in input prices and energy costs mean that our capital budget will be unable to deliver as much as would have been judged possible just a few months ago. The Government will keep these factors under constant review as we take forward the capital programme. Fourthly, given the uncertain inflation outlook and the need to still conclude some pay deals for the current year, I am publishing a public sector pay policy for 2023-24 at this stage. We will, of course, continue to collaborate with trade unions and public sector employers on fair and sustainable pay, and we will look to see more on our approach for 2023-24 in the new year. The Scottish Government, like Governments all over the world, is faced with a difficult set of choices. Through this budget, we are facing up to our responsibilities, while being open with the people of Scotland about the challenges that lie ahead. To Governments to choose, and the Scottish Government has made its choice, we have chosen not to follow the path of austerity that is the hallmark of the United Kingdom Government. But let me be clear, the choices that we face are all the starker because of the United Kingdom Government. Within the powers available to us, we will choose a different path, a path that sees the Scottish Government commit substantial resources to protect the most vulnerable people of Scotland from the impact of decisions and policies made by the United Kingdom Government. We choose to do everything in our power to eliminate child poverty because, in doing so, we improve the lives of children and families in Scotland today while also laying the foundations for a more equal and prosperous country in the future. We choose to prioritise the transition to net zero because it is precisely through this transition that Scotland will realise its economic potential not in spite of it. A stronger, fairer, greener economy benefits everyone. We choose to stand firmly alongside the Scottish people, investing in our public services and doing everything possible to ensure that no one is left behind. All of us need to know our public services will be there to meet our needs and we must invest in them to make sure that promise can be fulfilled. In particular, we must target investment in our national health service, which is facing unprecedented pressure following the pandemic. To do this, by choosing a different, more progressive path for Scotland, that is why this budget strengthens the social contract between the Scottish Government and every citizen of Scotland for the wider benefit of society. This social contract means that people in Scotland continue to enjoy many benefits not available throughout the United Kingdom, including free prescriptions, free access to higher education and the Scottish child payment. It also means that in Scotland families are shielded as far as possible from the welfare cuts and austerity policies of the United Kingdom Government because we know that progressive model works. We choose the path where people are asked to pay their fair share in the knowledge that, in so doing, they help to create the fairer society in which we all want to live. The limited powers that we won after the independence referendum in 2014 enables Scotland to make different choices on tax and on some elements of social security. The Scottish Government has made use of those powers in the past. In total, the decisions that we have taken since devolution of tax powers and the proposals that I am putting forward today will raise around £1 billion more next year than if we had followed UK tax decisions. We have also used those powers in creating a social security system based on the values of dignity, compassion and respect. This year we introduced the Scottish child payment, the only measure of kindness available in the United Kingdom, to support children living in poverty. It was first introduced at a rate of £10 per week per eligible child under the age of six. It was then doubled to £20 from April 2022. In November 2022, it was extended to eligible children under the age of 16 and increased to £25, meaning that the payment has increased by 150 per cent in just eight months. The Scottish child payment is now available to around 387,000 children in Scotland and I confirm that the payment will remain at the increased level of £25 per child per week. I am pleased also to announce that all other social security benefits under the control of the Scottish Government will be increased by the rate of inflation in September of 10.1 per cent. In the face of the extraordinary challenges that we face, we have chosen to use our tax powers again to protect our country from the harm caused by the turmoil of these times and the damaging decisions of the United Kingdom Government. Our approach to taxation continues to be guided by our values and the principle that the tax burden should be proportionate to the ability to pay. That commitment to fairness is what underpins the choices that we have made throughout this budget and it underpins our whole approach to taxation. In this budget, we are asking people on higher incomes to contribute more in taxation than those on lower incomes. But with the majority of people in Scotland still paying less in taxation than if they lived in the rest of the United Kingdom. By these decisions, everyone in Scotland will be able to pay the benefits of strong public services and a comprehensive social contract. On income tax, I intend to maintain the thresholds for the starter and basic rate bands at their current levels. I confirm that I will also maintain the higher rate threshold at its current level and I will lower the top rate threshold from £150,000 to £125,140. I also intend to make no changes to the starter, basic and intermediate rates to protect those on lower incomes. I have decided to increase the higher and top rates of tax by one pence each to 42 pence and 47 pence respectively. As a result, we are asking all those earning more than £43,662 to pay an extra penny in income tax. I want to be clear that extra penny is being raised for a specific purpose. We have taken the decision to enable us to exceed the health resource Barnett consequentials from the UK Government, with substantial additional investment in the national health service and investment that will benefit us all. It is in short an extra penny to enable spending on patient care in our national health service. On land and buildings transaction tax, there will be no changes to the main residential and non-residential rates and bands next year. Legislation will be introduced today to increase the rate of the additional dwelling supplement from 4 per cent to 6 per cent, raising much-needed additional revenue whilst protecting opportunities for first-time buyers. This change will apply with effect from 16 December to address any potential for forestalling with a transitional provision in place. I can also announce today that we will increase both the standard and lower Scottish landfill tax rates on 1 April and will maintain consistency across the United Kingdom, guard against waste tourism and support our ambitions for a more circular economy. The Scottish Fiscal Commission forecasts that the income tax policy changes that I have outlined today will raise £129 million in 2023-24. In addition to that, the Scottish Government estimates that freezing the higher rate threshold has added £390 million when compared to inflation. The SFC also forecasts that the changes to the additional dwelling supplement will raise an additional £34 million in revenue in 2023-24. Taken together, we estimate that those changes will provide £553 million in 2023-24 for investment in public services in Scotland. In this challenging economic context, I recognise the pressures faced by business working in difficult conditions to create employment and growth in our economy. 16 business organisations came together to ask me to take one particular step to support businesses through these tough times. The number one ask was that I freeze the non-domestic rates poundage at 2022-23 levels. On non-domestic rates, I can confirm that we will protect businesses from the full impact of inflation by delivering a freeze to the basic property rate. This will ensure that Scotland has the lowest poundage in the United Kingdom for the fifth year in a row and is forecast to save business tax rate pairs £308 million compared to an inflationary increase. We will reform and extend the small business bonus scheme to improve the progressivity of the relief, while ensuring that it remains the most generous small business relief in the United Kingdom and delivers the manifesto commitment that 100,000 properties will be taken out of rates altogether. By introducing transitional reliefs, we will help to ensure those properties that see their rates liabilities increase significantly following the revaluation to do so in a phased manner. We will use our approach to non-domestic rates to assist the transition to net zero as we incentivise investment in renewables through the introduction of new prescribed plant and machinery exemptions for on-site renewable energy generation and storage. Investment, be it in the low-carbon economy or more broadly, is central to building a strong economy and the fairer and more equal country in which we all want to live. It is to that investment that I now turn. In formulating a budget in this period of huge challenge, it is vital that the Government sets out its clearest priorities. That is necessary to give clarity to our partners in local government, the private and third sectors and in public bodies about the direction about what matters to the Government. Through our programme for government in this budget, we are focused on eradicating child poverty, transforming the economy to net zero and in creating sustainable public services. We do not view those as three competing objectives. We view them as priorities that are linked together as a means of supporting families, of creating new economic opportunities, of protecting our environment and of offering protection and support to every citizen in Scotland through our public services. Much of what the Government wishes to achieve for Scotland aligns with what local authorities wish to achieve for their communities. Too often, valuable time and energy is taken up in fractious debates about resources and accountability for spending them. The Government will invite our partners in local government to work with us in building on our jointly produced Covid recovery strategy to create a more effective way of working together, focused on outcomes that matter to people, with more flexibility, reduced reporting and greater assurance. We want to enable this new partnership by giving our commitment to the financing of local government. Instead of providing the flat cash position set out in the resource spending review, we are now increasing the resources available to local government next year by over £550 million. Furthermore, I can confirm that the Scottish Government will not seek to agree any freeze or cap in locally determined increases to council tax as requested by COSLA and council leaders. This means that each council will have full flexibility to set the council tax rate that is appropriate for their local authority area. I encourage councils to consider carefully the cost pressures facing the public when setting future rates. Earlier this year, the Government set out our plan to tackle child poverty, best start bright futures. The title of the plan says it all. We want to ensure that children get the best start in life and are able to fulfil their potential. That means in this budget sustaining investment in the baby box, providing 1140 hours of early learning and childcare to all three and four-year-olds and eligible two-year-olds, committing £200 million to the Scottish attainment challenge to deliver excellence and equity in education and tackling school holiday hunger with investment of £22 million to provide meals during school holidays to the children who need them most. That builds on our on-going expansion of free school meals for all primary six and seven pupils in receipt of the Scottish child payment as the next step in fulfilling our commitment to universal provision in primary schools from August 2024. We recognise that some of the children in poverty whose life chances face the greatest of challenge are those with experience of care. The budget delivers a further £30 million investment to keep the promise and £50 million investment in a whole family wellbeing programme to provide holistic preventative family support to give our children who face the greatest challenge the greatest opportunity to realise their potential. A crucial element of helping families out of poverty is providing the opportunities and integrated support parents need to access, sustain and progress in work. We recognise that some people face greater challenges in entering the labour market so we are increasing the investment we have made in no one left behind and fair starts Scotland. Employment opportunities are crucial, particularly in these difficult economic times, so the transition of our economy to net zero must be undertaken in a just and fair way that enables people, communities and businesses in Scotland to thrive and prosper. Those opportunities must exist in every single part of Scotland. That approach will be delivered through initiatives such as the £366 million planned investment in the heat and buildings programme to decarbonise heating plus the £34 million Scottish industrial energy transformation fund and the £26 million low-carbon manufacturing challenge fund. Investment in our natural environment will support the journey to net zero with a £26 million programme of peatland restoration, £77 million in woodland planting and £44 million to help Scotland to become a global leader in sustainable and regenerative agriculture. We will support the transition to net zero by investing a further £244 million in the Scottish National Investment Bank, by investing £50 million to deliver the next phase of the Just Transition Fund for the North East and for Murray, more than doubling this year's allocation, and investing in the tech scale programme throughout Scotland to support our efforts in innovation. As the Climate Change Committee recently highlighted, decarbonising transport remains one of the key challenges we face in reaching net zero. We will support those efforts by working with the private sector to extend Scotland's electric vehicle charging infrastructure with investment of £60 million, expenditure of £1.4 billion to maintain, operate and decarbonise our rail infrastructure, invest nearly £200 million in active and sustainable travel and provide £15 million as part of our fair fares review for a six-month pilot removing peak-time rail fares as a way of making rail travel more affordable and attractive to travellers. Ferry services are vital in sustaining connectivity with our island communities, and the budget includes £440 million to support lifeline services. I am also allocated £15 million in this financial year and £57 million in the next financial year to support the completion of vessels 801 and 802 at Ferguson Marine, along with the resources required to build the two new island-class vessels under construction and a further two vessels of the same type currently in procurement. We must have a skills training and research environment that enables our people and businesses to realise their potential. For that reason, we have increased the resources available to the college and university sectors by £26 million and £20 million to support this process. Many of our public services are on a journey to recovery following the acute phase of the pandemic. That is no more so than in the justice system. We want people to live in safe communities where we act early to reduce the potential for harm, support victims of crime and act swiftly to bring the perpetrators of crime and violence to justice. As part of this budget, I intend to increase the resources available to the Crown Office and Procurator Fiscal Service by £13 million and to our wider justice system by £165 million. That will provide resources to tackle court backlogs, strengthen legal aid provision and enable the funding of police services to increase by £80 million. The most precious of our public services, the one of which all of us depend, is our national health service. We recognise the challenges the NHS faces and the pressures that are borne by the outstanding public servants in the NHS. That is why we have offered a formidable pay settlement to staff in the NHS. Supporting our NHS boards remains a top priority and in the year ahead we will invest over £13 billion to allow them to continue to drive forward the five-year recovery plan. The reform of key services will continue back by £2 billion to establish and improve primary healthcare services in the community. We will provide £1.7 billion for social care and integration to improve services by paving the way for the introduction of the national care service. This still £100 million will be made available to support delivery of the £10.90 real living wage for adult social care, building on the increase provided in 2022-23. That is vital work and it is important that those on the front line are supported. We are committed to addressing the on-going public health emergencies and reducing the avoidable harms associated with drugs and alcohol. By investing £160 million, we will ensure that important work continues. That is part of our commitment to provide £250 million of additional funding over the life of this Parliament to address the drug's death emergency. If we want to be able to depend on the national health service, we have to be prepared to pay for it. When the UK Government set out its autumn statement, it gave rise to consequential funding for the NHS in Scotland of £291 million. I intend to pass on that funding consequential, but I do not believe that it is nearly enough for the critical task that we ask our staff in the national health service to do. As a result of the choices that I have made on income tax, I am in a position in one year to increase the amount that we spend on health and social care in Scotland by over £1 billion. In the resource spending review, the Scottish Government committed to making £20 million available to fund the cost of a referendum on Scottish independence. The Government believed that to be a necessary investment to ensure that people of Scotland have the opportunity to express their democratic right to self-government. The Scottish Government respects the decision of the Supreme Court but still believes that people of Scotland must have the opportunity to have that say in a democratic referendum in line with our clear mandate. When that opportunity is available, the Scottish Government will make financial provisions for that to happen. However, at this moment, I must make full use of the resources available to me. One of the reasons why I believe that Scotland will be a successful independent country is because of the energy wealth that we enjoy. Scotland is a country with an abundance of renewable energy opportunities. The travesty, however, is that despite that strength, too many of our people languish in fuel poverty. In order to help our most vulnerable citizens, I intend to utilise the finance earmarked for a referendum on independence to make provision to extend our fuel insecurity fund into next year, a further £20 million to address yet another failure of the United Kingdom and its policies. Presiding Officer, this budget takes place at a time of enormous challenge and difficulty for people and business due to volatility in the economy and the corrosive effect of inflation. Many in our communities, the people who send us here, are suffering real and enduring hardship. All of this is happening at a time when our country needs to adapt to the challenges of net zero and face the hard reality of severe constraints in the public finances. In that context, this Government has decided to use our scope to take distinctive decisions to the greatest extent we believe possible at this time. We have chosen to reject the path of austerity. We have chosen a progressive path instead to invest in our people, to invest in our economy and to invest in our public services. Those are the choices we have made, the choices for our future, and I commend the budget to Parliament. The cabinet secretary will now take questions on the issues raised in his statement. I intend to allow around 60 minutes for questions after which we will move on to the next item of business. I would be grateful if all members who wish to ask a question were to press their question-to-speak buttons now. I call Liz Smith. Thank you. Rather unusually, I begin by thanking you in my response for taking the matter of the pre-budget leak to the press very seriously. There is no doubt that this was a very considerable discuritise to this Parliament, one that I have never come across before in my time in this place. It has been extremely difficult for Opposition members to view this budget as a result. I am sure that there are members across this chamber who will want you to fully investigate why this was allowed to happen. Presiding Officer, can I acknowledge again the very tight fiscal circumstances confronting the cabinet secretary as he has embarked upon the tough decisions that he has outlined? I do think that it is about time that John Swinney stopped blaming the UK Government for every single predicament in which he finds himself, because he has had more money at his disposal than he has been prepared to admit. As the Fraser of Allander Institute reminded us at the weekend, the block grant money from the UK Government more or less covered the inflationary pressures upon him. He knows too that, discounting all the additional Covid spend from the UK Government in the previous two years, he had a record block grant funding from the UK Government for the current financial year, and he knows that the Scottish Government will receive an additional £1.6 billion of resource spending in the next two financial years, which will give direct support to our schools and hospitals. He tells us today that the Scottish Government has been forced into using its own powers to the greatest extent, but those powers have been there throughout all the time that the SNP has been in Government. Yet it hasn't been using them to deliver on the clear priorities of the Scottish people, on supporting household incomes on jobs, on sustained and consistent support for our businesses in high streets, and on the delivery of our public services, many of which are, of course, delivered by local government, and which we know recently wrote a very strong letter to John Swinney outlining the extent of the huge pressures that it is under as a result of the SNP cutting its funding over several years. If you raise taxes, Mr Swinney, the public wants to know why they see only cuts and a deterioration in the delivery of public services. If you widen the tax gap for middle and higher earners in Scotland in comparison with their UK counterparts, you risk undermining the potential for economic growth that this country so desperately needs. The Scottish Conservatives very much look forward to the forthcoming stage 1 process in which we will set out where Mr Swinney can further re-prioritise money to front-line services, including to local government, to policing, to net zero, a re-prioritisation which means withdrawing the huge spending commitment to the national care service, which very few stakeholders want at all, and removing that commitment to the bogus referendum. In the meantime, can I ask what analysis has Mr Swinney undertaken about the likely impact on tax revenues and on economic growth in Scotland, resulting from middle and higher income earners paying more tax per head than their counterparts in the rest of the UK? Given that we know from the Scottish Fiscal Commission that the devolved tax powers used so far by the Scottish Government have not delivered any additional tax revenues than would have been the case had the taxes been set by Westminster. Secondly, I noticed that the total education and skills budget has been increased for the coming year by just under £100 million. As I understand that, it is not the full extent of the Barnett consequentials delivered to the Scottish Government for education. Can I ask him to confirm where the rest of that money is perhaps in local government budgets, but it is very important that that is spent in the tension of the education budget. Obviously, it is very good news indeed that finally the Scottish Government has withdrawn the £20 million that was due for an independence referendum. Can I ask him to confirm that, as well as prioritising that money, has he also prioritised the activities of the 25 civil servants who were working on that? That was a very confused contribution from Liz Smith. Let me just walk my way through that. Just a few months ago, Liz Smith wanted me to follow the budget of quasi-quartang and cut tax immediately and look at the carnage that that is created in the UK economy. At the weekend, quasi-quartang told us that they all got carried away. They blew it. Well, that lot over there wanted me to follow their stupid and foolish example. Thank goodness I never did it. When I look at some of the points that Liz Smith puts to me, for example, on business support, she did not welcome the fact that I have frozen business rates, despite the fact that 16 business organisations asked me to do that. That might have merited a welcome. She said that we have not put in place support for business. We have got the best small business scheme in the United Kingdom. When it comes to the tax forecast, Liz Smith will be able to read the Scottish Fiscal Commission's report, which indicates that they have given us projections about growth in income tax earnings in the years to come, as the Scottish economy strengthens. Another thing that Liz Smith might get round to welcoming. Then we come on to education consequentials. How on earth am I supposed to boost the budget of local government, which provides education in our country if I do not use the consequentials that are set out for those purposes? Lastly, on this obsession that Liz Smith has got with £20 million for the independence referendum, she is absolutely and completely obsessed with the whole thing. I am beginning to get worried about her obsession with that. I can fund that in order to deal with the few poverty that exists in our country, the punishing inflation that people are wrestling with, the sky-high energy costs that have been fuelled by the mismanagement of the United Kingdom's energy and economic policies by Liz Smith's allies in the United Kingdom. I am allocating that resource to support those in fuel poverty and surely the Tories could welcome that. Daniel Johnson. Thank you, Presiding Officer. I, too, thank you for your investigations into this afternoon's incidents. Just to the comments made by the Deputy First Minister at the start of this, the details, I think, laid bare by Murdo Fraser, were news to me, particularly most prominently the rate of LBTT. Can I confirm that they were not in my copy of the statement that was released, that they were in the embargoed sections. It was an impossibility for opposition parties to be surprised that I considered the Deputy First Minister's comments to be a smear. I would ask him to withdraw them and to investigate who did, if it was without his authorisation, who did leak it from the Government. Budgets are about priorities, and the need to deliver on the priorities of the Scottish people could not be greater at this time. But this Government has a delivery problem. We know that there was half a billion pounds underspent last year from the financial and economy budget that could not get Covid support grants out the door. This year, the emergency budget saw a cut to building energy efficiency funding, apparently because there was a lack of demand. A lack of demand in the middle of a cost of living crisis caused by increases in gas and electricity costs. It beggars belief, so this budget must deliver for those in most need. Can the Deputy First Minister set out how this budget will tackle the Government's clear deficiencies in delivery in assisting those in urgent need? Inflation is robbing people of their security, their dignity and their ability to provide for their families. The budget must pay particular attention to pay in the public sector. There are almost 300,000 people in the public sector or less than £15 an hour. ONS data is clear that there are 23,000 people in the public sector earning less than the national living wage. That is a scandal. As a result of this budget, what will those figures look like at the end of this financial year? I asked the Deputy First Minister if he could clarify that. Scottish Labour has been consistent in recent years about social care pay. Last year saw the minimum wage for social care raised by just 50p. This year it is even less, 40p. That is a 3.8 per cent increase. That is an insult. There is a direct and real cost to the NHS of delayed discharge. That has got worse because those carrying out social care have left for jobs with better pay. What is the cost of the health service of failing to increase pay to £12 an hour? Has that assessment been carried out? I would also ask the Deputy First Minister to concede that the fiscal commission has been clear that Scottish growth in wages and jobs has lagged the UK average and lagged every other devolved nation. Does the Deputy First Minister acknowledge this Government's failure to deliver a growth plan worthy of the name and its failure to grow jobs and people, and how will this budget help that? Finally, Scottish Labour will always support progressive taxation, but we are also clear that if you are going to take progressive tax measures, you must demonstrate clear improvements to public services. The statement today, with a manifesto-busting measure, does not do this. People will not accept a rise in tax bills if all they see is further decline of their services after 15 years of the SNP's mismanagement of them. Nor will they tolerate this tax hike if they see the ranks of spin doctors, quangos and civil servants swell. Will the Deputy First Minister bring forward a clear plan setting out how this money will improve the NHS, not just by the funding amount? Will he pledge to cut Government waste to justify this tax rise? Deputy First Minister. The focus of the budget is on eradicating child poverty, on making the transition of the economy to net zero practical and possible, and on ensuring we have sustainable public services. That is the approach that I am putting into the budget to ensure the delivery challenge that Mr Johnson puts to me can be addressed. On the question of public sector pay, as Mr Johnson knows, he and I have rehearsed this issue a few times, we have spent, as ministers, a large amount of time over the course of the last few months trying to get to a position whereby we secure deals that are increasing the pay of public sector workers, and we have made significant progress. Indeed, one of the points that the First Minister was making at First Minister's question time today is that in every other part of the United Kingdom today there is industrial action in the national health service. That is not happening in Scotland because of the dialogue that we have taken forward. I welcome very much the trade union support for the pay deals that we have put forward. We are working on all those deals, whether it is the local government deal or the health service deal. Each of those deals has been specifically focused and targeted on improving the position of low pay. Those on lower pay have had higher increases than those who are on higher pay. Those investments and those priorities made by the Government are designed to strengthen the position of people on low pay. Mr Johnson talked about the issue of delayed discharge, and the Government accepts the undesirability of delayed discharge. The health secretary and I and other ministers are spending a huge amount of time working with local government and partners to try to secure those reductions. The key thing that we keep on being told is the challenge of being able to recruit staff, and the challenge of recruiting staff is about the folly of Brexit and the loss of free movement of population. We are taking the steps necessary through the work that we are doing to improve pay to try to ensure that we can overcome that disadvantage. Mr Johnson asked me about wage growth in the Scottish economy. He will not have time to see this because it is in the Fiscal Commission report. The Fiscal Commission report says today that it predicts a period of catch-up in Scottish earnings over the next five years relative to the rest of the United Kingdom. I hope that that gives Mr Johnson some reassurance and what will drive that will be the implementation and delivery of the national strategy for economic transformation that was set out by the finance secretary earlier this year and has now been taken forward to deliver that improvement in economic performance. Lastly, we come to the question of tax. I have never heard in my puff such an equivocal explanation of the Labour Party's position on tax because Daniel Johnson was sat throughout that question to me well and truly on top of the fence on the issue of taxation. The Labour Party's got to decide whose side are they on, are they on the side of investing in the public services or are they on the side of trying to have it both ways because that's what Daniel Johnson is trying to do today. Alex Cole-Hamilton. Thank you very much, Presiding Officer. This is a bleak day for our country. External factors have certainly played their part, but they have been compounded by the manifest failure of this Government, failure on mental health waiting times, on educational attainment, on ferries and energy generation. On top of all that, this Government has failed to grow our economy despite the extensive levers that they have available to them. As such, there is a lot of pain in this budget, pain for mental health services, for a voluntary sector on its knees that will now face another £4 million cut. A local government uplift that is barely half of what COSLA have asked in order to simply keep the lights on. I presented to the Deputy First Minister options for further savings, so I'm disappointed that it appears that there still seems to be a £17 million contract for national testing children as young as four and five and the vast and unnecessary £1 billion bureaucracy that is the ministerial takeover of social care. There is still time to turn this around. I think that there is a lot of hope and comfort to the 200,000 sufferers of long Covid on whom this budget is entirely silent. The Government had the opportunity to be transformative on the climate emergency and the rising costs of living by instructing right now, today, an immediate programme of public works to insulate every home in Scotland. He even had a photo opportunity, but interrogating the figures appears that he is renouncing large portions of the energy efficiency budget. Can I ask the Deputy First Minister how much of this is new money? Can I explore some of the points that Mr Cole-Hamilton has put to me about the position in relation to mental health, health expenditure and local government? I think that this is where we get into some of the dilemmas and the choices that Parliament has to make. In the letter that I received from directors of finance in local government who asked for an uplift of £1 billion for local government, a figure that Mr Cole-Hamilton has reinforced today, they asked that all consequences from the UK government were allocated to local government. That would mean that I couldn't allocate those consequences to health. Mr Cole-Hamilton has just made a plea to me to ensure that mental health expenditure and health expenditure is supportive. I have chosen to increase taxation to enable me to invest £1 billion extra on this year in the national health service to ensure that the very priorities that Mr Cole-Hamilton raises with me can be taken forward and applied. I assure him because it comes out of the dialogue that I have with my colleagues in the Scottish Green Party of the sustained investment that the Government is making in renewable energy, in energy efficiency, in home insulation. Those programmes are long-term programmes that have to be supported by Government funding. We have made our choices. We have supported those programmes and we expect those programmes to have an impact on the lives of people in Scotland as a consequence. Before I move to the next question, I would be grateful if we could have short and succinct questions and responses because, unsurprisingly, there is a great deal of interest in this item. I call Kenneth Gibson to be followed by Murdo Fraser. I welcome the Deputy First Minister's statement delivered on the most challenging of circumstances. Scottish Enterprise approved £120 million in grant funding and equity investment for innovation activities last year, which is expected to generate a further £502 million from the private sector and £86 million from public sector partners. Given the need to innovate, grow our economy and boost productivity to generate further tax revenues to support our public services and reduce poverty, can he expand on how those measures announced today, such as the tech-scaler programme, will help to achieve those goals? Deputy First Minister. The measures that Mr Gibson sets out are very much encapsulated in the national strategy for economic transformation. The tech-scaler programme is part of that and this is a programme that has been taken forward by a successful organisation called Codebase. It will enable there to be a network of these tech-scalers which assist in developing new business concepts and new business ideas in a thriving innovation environment. Those opportunities will be available in all parts of the country because one of the key points of the national strategy on economic transformation is the necessity for regional economic policy to thrive as a consequence. I would also point out that we have given the enterprise agencies stronger settlements than they might have expected in the resource spending review to support that process of economic development. Murdo Fraser, to be followed by Jenny Minto. Thank you, Presiding Officer. The Deputy First Minister claims that the budget prioritises the transition to net zero and he talked about using the non-domestic rate system to increase investment in renewable energy, a very worthwhile objective. Right now, and he should know this as the active finance secretary, small-scale hydro-schemes across Scotland are facing an increase in their business rates of up to nearly 600 per cent. One scheme has seen its rateable value increase from £81,500 in 2017 to a draft valuation in 2023 of £439,500. The Executive Director of Alba Energy described this as madness without a method. How on earth can the Deputy First Minister reconcile what is actually happening on the ground with a rhetoric that we have just heard in his statement? There are a number of points in there. The first is that the Government has expanded the release available to renewable energy projects as part of the non-domestic rates regime. As Mr Fraser will know, valuations for non-domestic rates are undertaken by assessors acting independently of government. It is their judgment on the basis of the structure of non-domestic rates to come to those judgments. There is the opportunity for individual organisations who feel that they have decisions with which they do not agree to appeal against those valuations. Obviously, there is a due statutory process for that to be undertaken. Jenny Minto, to be followed by Jackie Baillie. I thank the Deputy First Minister for his statement, which prioritises Scotland's national health service. Can the Deputy First Minister outline how the increases in the Scottish Government's front-line health budget compare to any increase in the UK Government's front-line health spend? I have taken decisions today about ensuring that our health service has the resources available to it to recover from the pandemic and to ensure that the patient care of individuals can be properly addressed in Scotland. That £1 billion single-year increase is the largest contribution that the Government can make to helping the national health service. It exceeds the Barnett consequentials that are available to us, so it demonstrates our commitment to the recovery in the national health service. Jackie Baillie, to be followed by Colin Beattie. Will the Deputy First Minister pause the national care service bill to release money to spend on ending non-residential care charges, which is effectively a care tax on the vulnerable during a cost of living crisis? The Deputy First Minister will also be aware that increasing wages to £10.90 an hour means that people working in Liddles earn more than social care staff. That will not be enough to tackle the increasing level of vacancies in social care and will not take the pressure off the NHS with delayed discharge. He is also creating a two-tier workforce in care by paying children's social care staff less. Will he pay all social care staff £15 an hour, which is what they so richly deserve? The Parliament is currently considering the legislation on the national care service, so there is a process to be undertaken in that scrutiny, and it is for Parliament to consider all of those issues in the proper process. In relation to the care sector, I recognise the financial challenges that individuals face, which is why the Government has put so much effort and energy and resource, I might add, into strengthening the pay deals that are available to individuals within employment in the care service. We will continue to do as much as we possibly can do, but the scale of financial change that Jackie Baillie talks about would rather force her front bench to get off the fence a little bit about where the money would come from to enable that to take place. I will be happy to participate in discussion and dialogue with all-position parties about what should be the priorities of the budget. I have already engaged with Mr Johnson on this question and I have engaged with all political parties, but we have to establish the ground rule that when people are coming forward with suggestions that will increase the cost in the budget, they have to tell us where the savings will come from. I call Colin Beattie to be followed by Mark Griffin. As we progress with our just transition to net zero, it is vital that we prepare our workforce to be able to take advantage of the opportunities that this will bring. Can the Deputy First Minister provide any further information about how the measures set out in his budget will support the creation of new green jobs in Scotland? Can he advise what assessment has been made of the progress made in terms of job creation so far? The steps that are taken in the budget are designed to ensure that we have a very focused approach to the delivery of new employment within the green economy and the journey to net zero. That will take place across a range of programmes. What I said in my statement was about seeing the interrelationship between public services and the journey to net zero and the attack on child poverty has been part of a journey that joins together all of those different themes to ensure that we are creating employment opportunities that help families to get out of poverty. The measures that are set out in the budget through the investment in our colleges and universities, the investment in the employability programmes in relation to No-one Left Behind and Fair Start Scotland are all designed to support that journey for individuals and then the investment funds that are available for the low-carbon economy will support companies to create those new opportunities as our economy changes. From that combination of effort I'm confident that we'll be able to stimulate employment within the green economy. Mark Griffin to be followed by Natalie Donne. Thank you, Presiding Officer. The claim of £550 million more for local government is clearly smoking mirrors and more ring fencing and the huge real terms cut to core services through the general revenue grant will be disastrous on top of a house building budget slash by £176 million. Last week SNP councillors, not any other party, but SNP councillors in COSLA said services either significantly reduced, cut or stopped altogether and when councils can't focus spend or prevention the NHS will end up spending significantly more money. Has the cabinet secretary assessed the additional costs that will be borne by the NHS, the impact on care, the people needing emergency interventions when councils are left with no option but to scrap preventative services? Local government's expectation from the resource spending review was of a settlement that was flat cash. That would amount no more money next year and I've just announced £550 million of additional expenditure. Is it impossible for anybody in here to welcome the fact that that is a departure from the resource spending review and addresses significantly the issues put to me by local government? I also said in my statement that we would work with local government to address the concerns that they have about ring fencing, to address the concerns that they have about the level of reporting on certain programmes. Parliament also expects to hear from local government and Mr Griffin and his colleagues to ask those questions about the performance and delivery of certain issues that really matter to members of Parliament. We'll take forward that discussion with local government to create a partnership that we work together and it will be greatly assisted by the fact that we've just allocated £550 million of new additional resources to local government. I call Natalie Don to be followed by Miles Priggs. As the Deputy First Minister has outlined, the Scottish child payment increase is 150 per cent, which should help lift 50,000 children out of poverty. As we try to reach targets to reduce child poverty, the UK Government is taking action to push more people into poverty, causing inflation rises, failing to act on soaring energy costs, and much more. Can the Deputy First Minister expand on what action is being taken in this budget to eradicate poverty and contrast this against the damage being done by the UK Government? Deputy First Minister. There was research work undertaken by the Government earlier on this year, which indicated that if the UK Government had reversed its measures to restrict benefits, it would put £780 million into the pockets of people in Scotland. That's a measure of the scale of the erosion of the financial support available for people on low incomes. The Scottish Government has brought forward measures that substantially address some of those issues. In addition to the measures that we've already brought forward to mitigate the effects of the bedroom tax, we are doing as much as we possibly can do within the resources and the powers available to us to address those issues, but the scale of the challenge gets greater by the actions and the negative actions of the UK Government. I call Miles Briggs to be followed by Stuart McMillan. Thank you, Presiding Officer. The Deputy First Minister mentioned the Bute House agreement that states that this SNP Green Government will deliver 110,000 affordable homes. The day's budget cuts that housing budget by £215 million in real terms. On the back of that, that is also in a cut that we saw last year to the housing budget. This decision will undermine jobs in the construction sector. This SNP Government is now driving a housing crisis in Scotland as well. So why have the Government today ripped up their housing policies and what are the Scottish Government going to do to make sure affordable homes are actually delivered? Deputy First Minister. I tell Miles Briggs what is driving a housing crisis, and that is the increases in interest rates fuelled by the economic mismanagement of the United Kingdom Government. That is what is fueling a housing crisis. Now, what the Scottish Government is doing is we are supporting sustained investment over a long term to invest in our housing infrastructure. That very good progress has been made indeed in the previous parliaments. The Scottish Government delivered all of our targets in relation to housing. We are determined to ensure that we do that. I have been very candid with Parliament about the challenges in our capital programme. The cost of capital projects, anything that involves anything that relies on input prices will be more difficult because of the energy crisis, the energy prices and the rise in interest rates and the effect of inflation. Those are all substantive issues that have been fuelled by the actions of the United Kingdom Government. I call Stuart McMillan to be followed by Ross Greer. Thank you, Presiding Officer. I first of all welcome the announcement of the £60.9 million for Ferguson Marine and my constituency safeguarding shipbuilding jobs and also opportunities. The Deputy First Minister spoke of his frustration with the UK Government for providing additional funding. Can the Deputy First Minister provide an update on the Scottish Government's latest engagement with the UK Government regarding funding and whether it continues to press the UK Government for additional resource? In relation to future years, I have set out what the perspective looks like in relation to the spending available from the UK Government. It becomes extremely challenging in the later years of the spending review. I have engaged with the UK Government and set out the perspective that the Scottish Government has, and we will continue to do that. In relation to this financial year, I have encouraged the UK Government to recognise the extraordinary inflationary pressures with which we are wrestling at this time and the UK Government has decided not to change the financial position in this year which increases the financial strain with which we are wrestling. I appeal to the UK Government to revisit the issues that must be causing significant difficulty in UK departments. That call has been echoed by my colleague in the Welsh Government who has made a similar plea to the UK Government. Thank you. Before I go to the next question, I would again ask for short and succinct questions and responses. I call Ross Greer to be followed by Paul MacLennan. I am grateful to the Deputy First Minister for his engagement on tax policy and the proposals that I have made on behalf of the Scottish Greens. Those changes have been made by the Government and the Greens in 2018. Can I ask what the overall benefit to our public services now is as a result of the changes that our parties have agreed since income tax powers were devolved a few years ago? The figure that I can give Mr Greer is that in the next financial year the combined effect of all the tax changes that have been made will be to increase the resources available to us to the tune of £1 billion. That is the consequence of opting for the progressive measures that we have put in place and what that has generated as an advantage for investment in Scottish public finances as a consequence of our dialogue. Paul MacLennan to be followed by Douglas Lomstone. Thank you, Presiding Officer. Mary Spowage, director of the Fraser of Ireland Institute, recently said that the influx ability of the budget for the Scottish Government in a strong case could be made for enhancing fiscal powers and that the lack of any real ability in the part of the Scottish Government to be able to flex its budget within year and year in response to anticipated shock remains a real limitation of the existing fiscal settlement. Does the Deputy First Minister give the assessment and what response has he had from the UK Government in this respect? Deputy First Minister. I have been very open with Parliament about the enormous constraints with which we are resting in this financial year in the history of this Parliament where inflation has been a particularly significant factor and we have learnt the acute difficulty created by the limitations of our resource borrowing powers. We have no ability to address the volatility other than by redirecting spending from one programme to another and I have obviously had to do that now on two occasions and as I indicated in my statement I have not yet found a sustainable path to balance for this financial year to fully balance the Scottish Government's budget. Those are very real practical issues that the UK Government has not indicated a willingness to address these questions but I will continue to make that case to them. Last month I was at an emergency summit to look at the issue of empty shop units on Aberdeen's Union Street. Our town centres are desperate for help so can the Deputy First Minister tell us how the cut to the city's investment and strategy and the regeneration budget of £66.4 million will help the situation because this feels like the kiss of death to our high streets. The budgets reflect the pattern of expenditure around city deals around the country so there is a whole variety of different factors that go into these budget lines on an annual basis and they will vary because of the profile of those deals around the country. I would encourage Mr Lumsden not to read too much into that particular factor these are after all 10 sometimes 20-year city deals that have been put in place. The other point I would say to Mr Lumsden is obviously I have exceeded to the request of business organisations to freeze the business rates poundage I have done that and that provides substantive assistance and they need significant savings because those business rates should have ordinarily increased in line with inflation and I have opted not to do that in this budget statement. Brexit continues to hamper Scotland's efforts to establish a wellbeing economy and maintain parity with the wealth and prosperity of our small northern European neighbours. Does the Deputy First Minister agree that the fiscal damage of being ripped from the EU has made this budget more challenging than it ever had to be? Does he look forward, as I do, to the transformative economic opportunities to come when Scotland re-enters the European Single Market? The Office for Budget Responsibility estimates that the effect of the United Kingdom leaving the European Union has been to depress GDP by 4%. That is just an act of total economic vandalism that has been perpetrated. We could have left the European Union but we did not have to leave it in the fashion that we did. We could have maintained membership by the single market but it is so determined whether the Conservatives to ensure that to be the case would be disastrous. The only route for Scotland to be able to gain access to European markets with the degree of freedom that we previously enjoyed was Scotland to be an independent country and, in my view, the sooner that happens the better. Pulse, we need to be fooled by Graham Day. Thank you, Presiding Officer. Can I commend the cabinet secretary for his uplift? There were £140 million in spending on ferry services on top of the £60 million allocation to Ferguson Marine and I am sure that the Turkish shipyard that has been awarded the latest CalMac contract for the Islay-class ferries will be incredibly thankful for his generosity and indeed the ChNB trade union has calculated that for every pound of capital spending on a shipbuilding project in a Scottish shipyard that generates an extra 35 pence in the local economy for wage and supplier payments. Can I just press the cabinet secretary on whether he thinks that this capital spending that he has allocated is value for money for the Scottish taxpayer and Scottish economic growth are the real winners, the people of Turkey? The Government is focused on ensuring that we take forward the construction of ferry vessels to meet the needs of island communities. We are taking decisions consistent with the approach that is necessary in relation to public procurement projects. We are committing the investment and I am glad that at least in some measure Mr Sweeney was able to welcome it. Graham Day, to be followed by Jamie Halcro Johnston. Thank you, Presiding Officer. Whilst the groundwork has been laid there is much still to do if we have fully addressed the poverty-related attainment gap. Can I ask the Deputy First Minister to outline how the Scottish budget will support this essential mission? We are taking steps in the budget to ensure that the focus of our expenditure is clearly delivering the outcomes that Mr Day is securing. That will be a constant focus of Government in taking forward the budget and ensuring that the agenda upon which we are making progress can be intensified in the years to come. Jamie Halcro Johnston, to be followed by John Mason. The budget for Scotland's motorways and trunk roads has been cut by £76 million in 2023-2024. Will the cabinet secretary finally admit what my highlands and unis constituents know and what his constituents in Perthshire know? That the promised dueling of the A9 and Perth will not be completed in 2025 or indeed any time soon. Deputy First Minister. The Government's position in relation to the completion of the dueling of the A9 remains intact. We are taking forward steps in the budget and provision in the budget to do exactly that. I have made the point openly to Parliament and these are the hard realities that we are wrestling with. The capital projects are going to be more challenging because of the effect of input prices caused by all the circumstances with which we are familiar which have been fuelled by the mistakes of the United Kingdom Government. All of these factors are making those capital projects more difficult to deliver. The Government will address the implications of that on a constant basis as we take forward our policy and capital programme to ensure that we can deliver on the expectations of people around the country. John Mason to be followed by Michael Marra. Thank you. When I was speaking last week to councillors in Glasgow City Council one of their main requests was for more money so firstly I very much welcome the £550 million extra for local government. Deputy First Minister say something more about the flexibility that he mentioned in his statement because I think local government including Glasgow would like more flexibility but I accept that at the same time we have got national programmes. Deputy First Minister. That essentially is the dilemma with which we have to wrestle and I aired this in a conversation with COSLA leaders a couple of weeks ago and I returned to a conversation with COSLA leadership last night because there is very close parliamentary interest in the implementation of a number of key programmes and policy commitments but equally there will be a local desire to have some degree of flexibility about how those priorities are taken forward and what we have to create is a climate of assurance as we address the issues of flexibility that local authorities are seeking so it's that type of balance that we have to strike in those discussions and I will take that forward along with the social justice and local government secretary as we advance these issues with local government. Michael Marra to be followed by Bob Dorris. Our schools in Scotland have lost nearly 100 teachers in the last year before this real terms cut to core local government budgets. Paying for teachers currently accounts for one third of council net revenue expenditure. Can I ask what modelling has the Deputy First Minister undertaken on the number of teachers that will be lost as a result of his budget? Deputy First Minister. Here we've got a practical illustration of the issue that I've just been raising addressing with Mr Mason. The Government doesn't employ any teachers, they're employed by local authorities but Mr Marra of course wants to hold the Government to account for the employment of those teachers so the Government has come to Parliament today and I've set out a £550 million increase to the budget for local government higher than the budget this year and higher than local government could have expected. Local government has the opportunity to take forward the employment of teachers, to take forward the investment in public services given the fact that the Government has delivered a funding settlement that is higher and greater and more emphatic than the arrangements that are in place or that local government could have expected. Bob Dorris to be followed by Liam Kerr. There may be aware of calls by Marie Curie Scotland to use Scotland's social security system to provide enhanced support for those who are terminally ill. I appreciate that this would be a new and additional cost for a challenging financial climate but can I ask the Cabinet Secretary to work with the palliative care community to see what additional support can be provided and more specifically ask what support will be allocated to palliative care services in the Scottish budget given the increased number of deaths in a community setting? The health secretary will be very happy to meet palliative care organisations to address those questions. Obviously we are giving a generic, very significant increase to the health and care budget within Scotland. There will be opportunities for organisations to interact with the health system and how that can be taken forward so that Mr Doris raises on behalf of that sector which provides an invaluable role within the quality of life of our citizens can be properly and fully considered as part of the budget implementation. Liam Kerr to be followed by Mark Ruskell. As the man who had to check that there were no banana skins in the Ferguson Marine deal it will come as a shock to the public that the cabinet secretary is allocating a further £60 million to deliver the two ferries in our island communities. Can the cabinet secretary tell us which budget he had to cut in order to fund the further spending on the ferries that should have been delivered by now? As Mr Kerr will know the government looks at its entire capital programme on an on-going basis. We look at the phasing of projects we look at the delivery arrangements for projects to allocate the resources accordingly. What I thought Mr Kerr would have said on behalf of the public as they would expect us to complete those vessels and ensure that the needs of island communities were met and that's precisely what the government is doing. Mark Ruskell to be followed by Fergus Ewing. Peak time fares on trains are a huge drain on household budgets. Extortionate prices stop many from choosing rail over the private car and this damages our climate and drives down passenger numbers at a time when they need to build back up. Can I ask the Deputy First Minister how the budget will deliver fair fares for people while boosting the climate and our newly nationalised ScotRail? We've agreed to put into the the fares review £15 million which will be specifically focused on taking forward an exercise to reduce peak rail fares. It will operate over a six-month period next financial year and obviously the government will consider carefully the impact of that measure as to the long-term sustainability of such a proposition but obviously if it is successful then it would be something the government would wish to continue for a longer period. Fergus Ewing to be followed by Alexander Stewart. Presiding Officer between us the Deputy First Minister and myself have represented for very nearly 50 years people who use daily and who rely on the use of the A9 and he is, I know as aware as I am and other members of the tragic death toll that we have seen on this road this year almost all on single carriageway sections. I heard no reference at all in the budget to any new or additional funding for delivery of dualling of the A9 or indeed the A96 in my constituency and this will I am afraid be disappointing to my and I suspect also his constituents therefore. May I ask when will we deliver on our pledges first made 14 years ago and will he commit to publish early in the new year because I understand the pressures I fully understand the pressures that he described when he faced the commercial pressures and so on but will he publish early in the new year a revised timetable for delivery of our now somewhat aged pledges? Deputy First Minister Presiding Officer as Mr Ewing knows significant progress has been made on dualling the A9 indeed in my own constituency relatively recently the section between Lunkarty and Passiff Burnham is making a significant impact and I recognise also the tragedy of the death toll on the A9 which as a consequence of many road safety measures that have been taken for some considerable time that has been avoided for many years but has reached an intense level in the course of the last 12 months which causes enormous distress that has been affected and I welcome very much and Mr Ewing will be aware of this work the work that the Minister for Transport is taking forward to set out measures to improve road safety on the A9 that is a constant part of her attention and I welcome that and I would reassure Mr Ewing that resources are available in the budget to continue the programme of dualling the A9 and ministers are reviewing the capital programme and we are able to support the financial commitments in the light of the commercial pressures which are prevalent on capital programmes because of the increase in input prices Alexander Stewart to be followed by Audrey Nicholl The statement confirms the position set out in the resources pending review which are allocating an increase of over 550 million in cause as letter recently they indicated the black hole was around 1 billion council leaders have already indicated that if this was not provided they would struggle to provide even the basic essential services which communities rely upon Therefore Deputy First Minister which services do you suggest that councils further cut back on due to the lack of funding you are providing in this budget? Can I just point out the argument that has been marshaled in front of me just now by Mr Stewart Front bench have attacked me for increasing tax to increase the resources going into the public purse so if I didn't do that we'd have to have less money and then if we have less money available no they say they are even more economically illiterate than I thought the first time and then Mr Stewart asks me to increase the money to local government I just want to give the Tories a warning it's given with all the kindness I can generate to the Scottish Conservatives and Unionist Party every single time a conservative comes here asking the Government to spend more money on any aspect of policy we will remind them of their hostility to increasing tax and starving the public purse of the resources we require Audrey Nicholl to be followed by Colin Smith we know that local businesses in town centres across Scotland will be facing increased cost due to inflation and that will compound pre-existing issues that they have been facing due to changing shopping habits so can the Deputy First Minister say any more about how this budget will support our local high streets and town centres in this very difficult time Deputy First Minister The principal thing I can say to Audrey Nicholl is obviously the decision I've taken on freezing business rate poundage is designed to help those who are in the sectors to which she refers operating in town centres there's obviously other work the government takes forward in relation to some of our regeneration activity which is designed to assist the development of town centres and that dialogue will continue around the country to support communities that are affected by the difficulties and challenges that are faced Colin Smith to be followed by Fiona Hyslop The Government sets water charges for the year ahead based on the consumer price index in October that was 11.1% as the Deputy First Minister said that's soaring inflation at a time the government is telling people to set up for paydeals less than this inflation why in the middle of a cost of living crisis is the government hammering families including low income families who all pay water charges with such an eye, water and hike in their bills Deputy First Minister As a matter of fact the government doesn't set water rates they are set by the board of Scottish Water and the directors of Scottish Water have got a responsibility to take forward that decision I'm quite certain that the board of Scottish Water will consider the cost of living challenge that is facing people around the country and will consider those issues when they take the decision about the level of water rates in Scotland Fiona Hyslop to be followed by Liam McArthur In all the big budget figures and announcements it might be possible to forget a smaller number but most significant and important group of young people who most need our continuing support What will the budget do for our care experienced young people and how will it help the Scottish Government and the Deputy First Minister personally deliver on their commitment to keeping the promise for continuing support for Scotland's care experienced young people Deputy First Minister There are two elements of the budget which are relevant in answering the very important question that Fiona Hyslop puts to me. The first is the investment the government is making of £50 million to further develop the whole family well-being which is a holistic family-based support programme We have also allocated in the budget £30 million to support our on-going commitment to the promise I hope that those two commitments give Fiona Hyslop and also the care experienced community in Scotland confidence of the sustained commitment of the government to ensure that we improve the opportunities and the life chances of young people who have experience of care within Scotland Liam McArthur to be followed by Jeremy Balfour The Deputy First Minister acknowledged that ferry services are vital in sustaining connectivity with our island communities yet in the face of fuel and maintenance costs which are increasing massively Mr Swinney is delivering a real-terms cut to funding for Orkney's lifeline internal ferry services How does he believe that that will help sustain connectivity for island communities and how much of the £440 million capital spend will go towards helping with the replacement urgently needed of the ageing internal ferry fleet in Orkney These are issues that I discussed recently with councillor James Stockin as I recorded in the answers and exchanges that I had with Mr McArthur yesterday I am keen to take forward further detailed discussions with Orkney Islands Council on the ferry replacement issue I recognise the scale of that issue for a relatively small authority and the Government will engage constructively and actively with Orkney Islands Council on how we can work together to address that particular challenge Jeremy Balfour to be followed by Emma Roddick Thank you, Presiding Officer Cabinet Secretary, we all support the third sector within this Parliament this year At last year's budget statement the then finance secretary said that the Government would look out and meet with voluntary organisations to look for a three-year parity deal The evidence that the social justice committee has taken recently is that neither the cabinet secretary nor yourself have met with SCVO to discuss this Will he make that pledge again and will this time the Government follow through on it? Deputy First Minister I'm very happy to confirm the Government's support for such an approach that reflects very much the decisions and discussions we've taken within Cabinet about the way in which we wish to proceed here I did have extensive discussions with the third sector and the preparation of the budget in advance of today's announcements I know that the Cabinet Secretary regularly meets with the third sector so I'm very happy to confirm our desire to follow those discussions to be followed by Monica Lennon Despite us not being able to hold the referendum next year that the people of Scotland asked us to I am glad to hear that the £20 million earmarked for it will be used for a good cause mitigating one of the worst effects of remaining in this union by tackling fuel poverty The Deputy First Minister will be aware that in my region the Highlands and Islands folk are often hardest hit by this and goods and services with facing some of the highest levels of fuel poverty in the country so can he expand on how this extra cost of living in the Highlands and Islands has been taken into account when designing the budget? I think it's what we want to make sure with the fuel and security fund is that we are supporting those who face the greatest challenge and that we assist them in every respect that we can so the learning that we've had this year which has been a very welcome assistance to individuals will be replicated in the fund that we take forward in the next financial year and I agree very much with the point that Emma Roddick has made about the fact that the issue that we are dealing with is a consequence of the energy frameworks within the United Kingdom which do such damage to householders particularly in the north of Scotland but in all parts of Scotland particularly in low incomes and it's one of the arguments why Scotland should be an independent country able to undertake a more appropriate energy policy that meets the needs of our people particularly those with vulnerability Monica Lennon to be followed by Stephen Kerr Thank you Can I ask the Deputy First Minister what provisions have we made in the budget to support the life-saving services provided by Rape Crisis Scotland centres right across the country amid fears that 28 jobs are at risk due to uncertainty over Scottish Government funding for this trusted and vital charity? Deputy First Minister I'm aware of the concerns that have been raised and obviously I value very much the services that Rape Crisis Scotland are providing The Government has made financial commitments which provide funding that continues into the latter part of 2023 but I understand there are earlier challenges to that so I give Monica Lennon the assurance that the Government will engage constructively in addressing that issue it's not all about a next year issue it's some of it is about a this year issue which as I've recounted to Parliament is particularly challenging for the Government but I do come at this from a sympathetic point of view to address those issues How can this budget be a budget for skills when it cuts SDS's budget? There's already a freeze on additional apprenticeship places so say the Scottish Training Federation they say that the current freeze in apprenticeship places will see training providers going out of business redundancies and apprenticeship training so will the Deputy First Minister confirm that the SNP seemed to have abandoned their target of 25,000 apprenticeships and does he recognise that common sense should tell us that this particular cut to SDS is the very last thing that our economy needs at this time Here we go again Here we have another Conservative who doesn't believe in us raising tax to increase the size of the public purse wanting us to spend more money on a particular issue however important that policy commitment might be Now let me just let me just Mr Kerr, I'm afraid there's going to have to be an awful lot of I know Liz Smith's a great fan of basic arithmetic she was always telling me that when I was education secretary Mr Kerr needs some assistance with basic arithmetic Liz Smith because Mr Kerr is asking me to increase the budget for skills development Scotland at the same time as his front bench is telling me not to increase the money for public expenditure as a whole Just to reassure Mr Kerr and no amount of waving papers at me and shouting and all the rest of it is going to I'll just repeat it all again and I'm being encouraged to be brief In relation to the 25,000 target the Government is absolutely committed to the 25,000 target indeed pre-pandemic the Government was on the verge of achieving its 30,000 target in modern apprenticeships available to be there's capacity in the programs at this stage and we are confident that these can be achieved I would also point out to Mr Kerr that as part of the budget and he didn't welcome this bit there is more resources being allocated to universities and colleges which obviously contribute to the skills opportunities and capacities of our country That concludes the ministerial statement on Scottish budget 2324 Point of order Stephen Kerr Presiding Officer Further to Daniel Johnson's contribution earlier I am disappointed but not surprised by the Deputy First Minister's attempt to shift blame for the shameful leak of the Scottish Government's budget away from him and his party when the details could only have come from his office Now he's made some very serious accusations this is right out of the Deputy First Minister's playbook and it confirms my view I'm afraid of the party and government's disrespect for this Parliament May I ask you as a point of order do you have a commitment from the Scottish Government that they will properly investigate and report on this leak and given the deceitful tactic that was employed earlier by the Deputy First Minister what confidence do you have that the categorical assurance that the leak was not from the Scottish Government is in any way dependable That is not a point of order Mr Kerr I have addressed the earlier points of order in earlier business today and I have had a discussion with the Scottish Government on this matter