an fiscal irresponsibility to an end. we had to make sure our country now lives within its means and we had to get public services back on their feet while meeting our tough new rules that end borrowing for day—to—day spending. we rules that end borrowing for day-to-day spending. we will head now _ day-to-day spending. we will head now from _ day-to-day spending. we will head now from westminster, | day-to-day spending. we will i head now from westminster, up to edinburgh, the scottish budget is coming up in a few minute, we can speak to our scotland correspondent, set the scene for us lorna. yes, this is a big moment in the scottish political calendar, rememberthe the scottish political calendar, remember the scottish government has a budget, last year of round £60 billion, that goesin year of round £60 billion, that goes in areas that are devolved to scotland like health, like education, rememberthere to scotland like health, like education, remember there are also, they also have tax raising powers, the income tax bands here in scotland are different from elsewhere, anyone earning over round £29,000 for instance pays more tax here in scotland, than elsewhere, anyone earning under

that pays a little less, but what, the best way to describe todayisit what, the best way to describe today is it is the start of a negotiation, she is laying out her stall if you like, for the other parties to look at, to decide what they like, what they would like to negotiation over what they would like to see change, because remember, the snp are in a minority here at holyrood. that is not unusual, there is only ever been one majority government in the time of devolution, back if 2007, the system is not designed for majorities, by necessity then, that means you have to compromise and makes deals so i think it will be interesting looking at the budget where there are olive branches to the other parties, areas where they can seek agreement, remembershe areas where they can seek agreement, remember she doesn't have much room for manoeuvre, while the budget sounds large, most of that money is already committed, they also got another a5 billion from the treasury this year, in what is

called barnet consequentials, but most of that money has already been taken up with rises in public sector pay, because remember, the public sector here has, well there are more people employed there and they earn more than elsewhere in the uk, so most of that money is already committed so not much room for manoeuvre, tough and competing demands, and of course, negotiations ahead we the other parties in order to get the deal through parliament.— order to get the deal through parliament. lorna, thank you for that, _ parliament. lorna, thank you for that, let _ parliament. lorna, thank you for that, let us _ parliament. lorna, thank you for that, let us speak- parliament. lorna, thank you for that, let us speak to - for that, let us speak to british and irish lions taylor political commentator an columnist. talk us through what you will look out for in the few minutes ahead? it’s you will look out for in the few minutes ahead? it's the stresses and _ few minutes ahead? it's the stresses and strains - few minutes ahead? it's the stresses and strains on - few minutes ahead? it's the stresses and strains on the | stresses and strains on the scottish government, on the first ministerjohn swinney on the one hand you have tremendous demands, tremendous pressures from the health service, and mr swinney is talking about improvement in the health service, an intriguing word, it is not

spending or investment, it is improvement. he will be looking forfurther spending but for further spending but reforms in forfurther spending but reforms in the health service in return, so you have that pressure, on the, on demands upon the public purse, demands to improve services but you have business in scotland saying about improvement in the health service, an intriguing word, it is not spending or investment, it is improvement. he will be looking for further spending but reforms in the health service in return, so you have that pressure, on the, on demands upon the public purse, demands to improve services but you have business in scotland saying their resilience is at "breaking point" because they are concerned about the level of taxation and the burdens placed upon them, so businesses looking for a drive to enhance the economy, and by that of course they mean reducing the burdens on themselves, whereas consumers, those who need to use the services like hospitals are looking for an improved service, shorter waiting lists, shorting waiting time, you have pressure on both sides and you have the government ministers right in the middle. interesting. lorna, iwant right in the middle. interesting. lorna, i want to come back to you, because the details of what is coming up we are not aware of, but there are some broad principles, broad brush approaches, child poverty is one. talks through that.

yes, the devil will be in the detail, and of course, you know, the custom dictated the announcement is put to msps first rather than leaked to the media, we know the broad themes already, eradicating child poverty is a priority for the snp government here, as is tackling climate change, that is a nod to their former partners the scottish greens, important to them, but important to them, but important to them, but important to keep them onboard as well. growing the economy, as well. growing the economy, as brian says, there is disquiet among certain sectors of business, like business rates they would like to see the reductions in rates matched here in scotland and then of course improving public service, that is the other broad theme. not least the nhs, which sucks up about a0% of the scottish government budget, and a report earlier this week from audit scotland said the current system is not sustainable,

there is a worsening financial position in the nhs and performance issues so it will be besting to see what he is said about that. i be besting to see what he is said about that.— be besting to see what he is said about that. i want to take a cuick said about that. i want to take a quick look. _ said about that. i want to take a quick look, if— said about that. i want to take a quick look, if we _ said about that. i want to take a quick look, if we can, - said about that. i want to take a quick look, if we can, inside | a quick look, if we can, inside the chamber, there is a brief pause before things get under way so we will keep an eye on that, but... ithink way so we will keep an eye on that, but... i think though, they are starting, just literally a few seconds so let us listen and see where they are. i us listen and see where they are. u, us listen and see where they are. a, ., ., , are. i call on the cabinet secretary _ are. i call on the cabinet secretary up _ are. i call on the cabinet secretary up tow - are. i call on the cabinet secretary up tow 30 - are. i call on the cabinet - secretary up tow 30 minutes please. — please. thank you presiding please. — thank you presiding officer, i am very proud to present a budget that delivers on the priorities of the people of scotland. 0ver recent years our nation has faced an unprecedented range of challenges, covid, inflation, austerity and brexit, today we can show that we understand the pressures that people are facing. we can choose to come together, to bring hope to

people, to renew our public services and deliver a wealth of new opportunities in our economy. this budget invests in public services, lifts children out of poverty, acts in the face of the climate emergency, and supportsjobs and face of the climate emergency, and supports jobs and economic growth. it is a budget filled with hope, for scotland's future. presiding officer, the uk budget resulted in an increase in funding there the barnett formula. that is welcome, but let us be clear, after inflation it represents growth in resource spending, thatis growth in resource spending, that is day—to—day spending to pay for services of only around i% pay for services of only around 1% year on year, substantial financial pressures therefore persist. in the face of a tory cost of living crisis i am proud of the pay deals that give scotland's nurses, teachers and public sector workers higher salaries than in the rest of the uk. and i am proud of the increased social

security spending that keeps people out of poverty. in one way, the uk government has added to the pressures that scotland faces with the increase in employers national insurance contributions, this hike will add £700 million to the cost of delivering public services. despite this, the uk government seems to be saying they will only reimburse less than half of that cost. they have accepted they should pay but they plan to short change our public services by hundreds of millions of pounds. even now, though, the chancellor has a opportunity to do the right thing, services in scotland should not have to suffer the chancellor should pay the full price for her own decisions. thank you. presiding officer this government has had to take difficult decisions to manage financial pressures. as set out in my statement in september this includes using some or all

of the scotland revenue, no—one wanted to do this. this money was meant to be used for long time investment to help transform our economy, so i was very clear they didn't want us to use that cash, to fund day—to—day spending. and we haven't. members will be pleased to hear that scotland has not been used up in this financial year, instead, has not been used up in this financialyear, instead, iam able to deploy over £3700 million of scotland revenues, in 2025, 26, for exactly the kind of long—term investment that it should be spent on. this 300 million will deliver substantial investment in jobs and measures to meet the climate challenge. presiding officer all of it an investment in the long—term success of our nation. progress for scotland, thatis nation. progress for scotland, that is our promise. but we can only deliver progress for the people of scotland, if there is

a willingness to work together across this parliament. 0ver across this parliament. over 100 proposals have come from members across this chamber and i would like to thank the opposition for their constructive engagement. 0thers constructive engagement. others have emerged from the conversations i and other ministers have had with people, businesses and organisations in communities the length and breadth of the land and we have listened, have heard people and we are acting, this is a budget for scotland, by scotland, and thatis for scotland, by scotland, and that is why i would encourage all members to give it their support. presiding officer. eradicating child poverty is our top priority. policies such as the game changing scottish child 15