Kate Forbes

The deal will see the phased introduction of free school meals for all primary pupils, an enhanced public sector pay deal, new Pandemic Support Payments and additional funding to support environmental, active travel and energy efficiency initiatives.

Talks are continuing ahead of tomorrow’s Stage 3 debate with the Scottish Liberal Democrats, who voted for the budget at Stage 1 in exchange for increased spending on mental health, business support and education recovery.

The new commitments build on the budget’s existing measures to address the challenges of the ongoing pandemic and lay the foundations for recovery. These include meeting the main ask of business by extending 100% rates relief for the retail, hospitality, leisure, aviation and newspaper sectors for a further 12 months – considerably exceeding the relief offered in England - supporting families by allocating money for a council tax freeze and providing record £16 billion to the NHS.

The new initiatives will be funded mainly from the unallocated balance of funding from last week’s UK budget.

They include:

• Pandemic Support Payments of £130 to households receiving Council Tax Reduction and two payments of £100 to families of children qualifying for free school meals
• The phased introduction of free school meals to all primary school children by August 2022
• An £800 pay rise for public sector workers earning up to £25,000, and a 2% increase for those earning over £25,000 up to £40,000.
• Extending free bus travel to under 22s
• £40 million to support the green recovery, including a further £15m for active travel, £10m for energy efficiency, £10m for biodiversity and £5m for agri-environmental measures

Ms Forbes said: “We continue to face unprecedented challenges and I have sought to engage constructively to deliver a budget that meets the needs of the nation.

“I would like to thank all parties for the positive way they have participated in this process. The budget addresses key issues raised by every party and I hope all MSPs feel able to support it. We have reached an agreement with the Scottish Greens and I am hopeful about the outcome of my continuing talks with the Liberal Democrats.

“Today I can announce that we are able to go further in offering a fair and affordable pay settlement to the public sector workers to whom we owe so much through the pandemic, particularly the lowest paid.

“The budget already contains measures to help struggling families, but in this deal we are also announcing details of a £100m programme of one-off Pandemic Support Payments. And we commit to providing free school meals to every primary school pupil by August 2022, with expansion for P4s starting after this year’s summer holidays.”

She added: “A green recovery lies at the heart of the Scottish Government’s policies and today we are delivering significant new investments in energy efficiency and active travel, while providing additional funding to support biodiversity and make our agriculture more environmentally-friendly.

“And, as we rebuild from Covid, we will support our young people by extending our original commitment to concessionary travel for all under 19s to include everyone up to age 22, giving all 18-21-year-olds free bus travel.

“Every penny made available to us to tackle the pandemic has been allocated. These remain difficult times, but this budget puts us on the path to a fairer, greener and more prosperous Scotland.”

Scottish Greens co-leader Patrick Harvie said: “The Scottish Greens have been clear that the Scottish budget needed to do more to tackle rising poverty and ensure a green recovery from the pandemic.

“I’m delighted that once again our constructive approach has delivered real results for the people who need it most. The COVID household relief payment will direct money to those households who have struggled in this crisis, providing funding for essential supplies.

“We’ve also been clear that school meals can be a vital tool in tackling child poverty. Marcus Rashford has brought the campaign for meals during the school holidays to the forefront, and I’m proud that Green MSPs have won that in Scotland, and universal free school meals for all primary kids by next summer.

“Concessionary bus travel for young people is a game changer, opening up opportunities for families and young people, and promoting public transport use for a whole generation.

“And after the insult of a public sector pay freeze from the UK budget, I’m proud that the Greens have secured an uplift for the workers who have been and still are on the front line of our efforts to tackle this public health crisis. We will continue to back further progress, for example in the imminent NHS Scotland pay review.

“We have also won commitments to sow the seeds of a green recovery, with more funding to embed cycling and walking infrastructure and protect Scotland’s nature. We’ve been clear that the efficiency of homes needs to be improved, and that farmers need more support to lower emissions.

“This year’s budget cements the impact the Scottish Greens have had on Scotland’s priorities over the last five years. From fairer taxes to local services, we’ve shown every year that Green MSPs will get things done to build a fairer and greener Scotland.”