Row over the impact of UK Budget on Scotland

A row has broken out of the UK budget's Budget on Scotland.

Chancellor Philip Hammond 's latest set of tax and spending plans for a freeze on oil and gas taxes, and an extra £ 950m for the Scottish Government over three years.

However, his Scottish counterpart Derek Mackay said the UK government had made a change to austerity, and had "short-changed Scotland".

The Scottish Government's draft budget plans will be set in December.

Mr Hammond used his budget – the last before the UK leaves the EU in March 2019 – to claim that "the era of austerity is finally coming to an end".

The Scottish government will get an extra £ 959.7m to get the most out of the money.

Ministers at Holyrood get health care Jeane Freeman has already indicated that Barnett consequentials stemming from extra NHS funding in the rest of the UK.

Other measures which have a significant impact in Scotland include:

• £ 150m for the Tay City Deal and negotiations for a Moray growth deal
• whiskey duty frozen
• headline tax rates on the oil and gas industry
• £ 12m for fisheries technology

Mr Hammond claimed the freeze on whiskey duty to "concerted lobbying" by the Scottish Conservatives, saying that "we can afford to raise a show to Ruth Davidson on the arrival of baby Finn".

And Scottish Secretary David Mundell said the budget was an "extensive investment in Scotland's economy", which "clearly provides the UK government is delivering for people in Scotland".

The Chancellor also announced that the tax-free allowance for income tax – which applies to the UK – will increase to £ 12,500 from April 2019.

He also stated in the threshold of the higher rate of income tax, of 40p, to earnings above £ 50,000. In Scotland, the higher rate is 41p, and kicks in at £ 43,431 – meaning the difference between the tax rates and the rate of increase. Mr Mackay does not take similar action in his draft budget.

'Short-changed Scotland'

In response, the Scottish Finance Secretary said that "austerity has not ended, and that is a choice by the UK government".

Mr Mackay said: "They could have done much more to stimulate the economy and invest in our services, and they have chosen not to.

"I asked the Tories to 'show me the money' when they declared they were rather short-changed Scotland, and particularly the NHS.

"The Scottish government has already set up our plans to support the NHS in the years to come and the funding we have received in the United Kingdom. at least 50m short of what was promised only four months ago.

"The reality of today's budget is that Scotland continues to be hit by UK austerity and the decision to leave the EU."

What has the reaction been?

The Scottish Chambers of Commerce said the budget had been "largely positive for business communities across the country".

Chief Executive Officer Liz Cameron said that "business will be ready to make the UK deliver a clear plan".

The Chartered Institute of Taxation said the raising of the balance of income tax for the income tax system.

Moira Kelly, Chairwoman of the Scottish Technical Committee, said the budget "highlights the practical difficulties of having control over some, but not all, aspects of the income tax regime".

She said it was "unlikely" that Mr Mackay would say that this might drive self-employed business owners to reorganize their tax arrangements to reduce their liabilities.

And Citizens Advice Scotland meanwhile said the Chancellor had conceded that there were "major problems" with Universal Credit, as he announced.

Chief Executive Officer Derek Mitchell said: "Any additional funding is of course welcome, but it is not enough that we will be satisfied with the reality of hardship."

What are the other parties saying?

Scottish Labor said people would "see through" the government's claims about austerity coming to an end.

Leader Richard Leonard said: "Theresa May promised the people that austerity would end up, but this budget has not been delivered. with a social security system that imposes a two-child cap on tax credits. "

Scottish Green co-convene Patrick Harvie said Mr Hammond had failed to heed warnings about "the urgency of tackling climate change".

He said: "We are being chancellor obsessed with keeping taxes low on the oil and gas industry, aviation and on petrol sales.

Scottish Lib Dem leader Willie Rennie said the Chancellor had "neither ended austerity nor addressed the fundamental problems in the economy".

He said: "We needed a budget that gives people more money and better public services, and a final say on the Brexit deal.