SNP (Scottish National Party)

No changes to tax rates in Scottish budget

Public Finance Minister Kate Forbes (left)
PA Media

There will be no changes to income tax rates in Scotland in the coming year, the government has announced.

Public Finance Minister Kate Forbes set out the budget in the place of Derek Mackay, whoresigned as finance secretary on Thursday morning.

She announced that tax rates will not increase, although the threshold where the upper rates kick in will be frozen.

And she committed extra funding to health, education and investment aimed at tackling the "climate emergency".

The SNP need votes from opposition parties to pass the budget, and Ms Forbes urged them not to be "partisan".

"Scotland set for a budget, but not as we know it"

Douglas Fraser

Scotland business & economy editor

Kate Forbes
BBC

It's a budget, but not as we know it. Kate Forbes, a late replacement for Derek Mackay, will get to her feet on Thursday afternoon, with a lot of pencilling, and the hope of ink next month.

The finance minister doesn't know what size the Holyrood block grant will be for the start of April. And while forecasting income tax always requires a bit of guesswork, this time will involve more peering into the cloudy crystal ball than usual.

Why? Brexit, of course. And the change of leadership in Downing Street.

Red budget box

To explain, some history, going back 21 years. There was an intention to do Holyrood's budgeting better than Westminster's.

Read more here.

Scottish finance secretary quits amid messages claims

Derek Mackay
Getty Images

Scotland's finance secretary has quit hours before delivering his budget over claims he messaged a 16-year-old boy on social media.

The Scottish Sunreported that Derek Mackay contacted the boyover a six-month period, and told him that he was "cute".

Mr Mackay said he had "behaved foolishly" and took full responsibility for his actions.

And he apologised "unreservedly" to the boy and his family.

First Minister Nicola Sturgeon said she had accepted Mr Mackay's resignation, adding: "Derek has made a significant contribution to government, however he recognises that his behaviour has failed to meet the standards required."

Read more here.