Scottish Budget 2019-20

22 Feb 2019 12:57 PM

MSPs back £42.5 billion budget.

The Scottish Parliament has approved the 2019-20 Scottish Budget which provides £42.5 billion of investment in Scotland’s public services and economy.

Finance Secretary Derek Mackay said the budget provides essential funding for health and care services, education, local government and economic investment, while ensuring that 55% of income taxpayers in Scotland pay less tax than those earning the same income in the rest of the UK.

The passage of the Budget comes on the same day as the Scottish Government’s Chief Economist published a report showing that a ‘No Deal’ Brexit would lead to a major dislocation to the Scottish economy, with the potential for national Gross Domestic Product (GDP) to fall by up to 7% and up to 100,000 jobs put at risk.

Mr Mackay yesterday said:

“The passage of the budget provides £42.5 billion of investment in our public services and economy delivering for the people of Scotland today, whilst building for our future. This is a budget that ensures stability, sustainability and economic stimulus.

“Scotland’s economy continues to grow and unemployment is at the lowest on record but our prosperity is being put at risk by the increasing Brexit uncertainty, and in particular the ‘No Deal’ scenario.

“Today’s Chief Economist report shows that a ‘No Deal’ Brexit would be expected to push the Scottish economy into recession during 2019, with the potential for the economy to contract by between 2.5% and 7% by the end of 2019.

“Such an economic slowdown would risk a rise in unemployment from its current record low, with up to 100,000 more people in Scotland made unemployed.

“This would be an economic shock on the scale of the 2008 financial crisis, and this cannot be allowed to happen.

“We will continue to call on the UK Government to immediately rule out the possibility of a ‘No Deal’ Brexit and extend the Article 50 process. As a responsible government we are also continuing - and indeed intensifying - our work to prepare for all outcomes as best we can. However, while we will do everything we can to prepare, we will not be able to mitigate all of the impacts of the UK Government’s Brexit approach.

“This budget safeguards Scotland as best we can, using all the powers and resources at our disposal with a clear focus on our priorities as a nation.”

Background

You can read the ‘No Deal’ Brexit – Economic Implications for Scotland’ paper here.

The 2019-20 Scottish Budget: