Kate Forbes

MSPs also approved the Scottish Rate Resolution, setting all income tax rates and bands.

The budget addresses the challenges of the ongoing pandemic and lays the foundations for recovery. It includes a 12-month extension of 100% rates relief for retail, hospitality, leisure, aviation and newspaper businesses, £1.1 billion for jobs and skills, record spending for health services, an £11.6bn settlement for local government and new funding to tackle climate change.

Finance secretary Kate Forbes said: “I have sought to engage constructively to deliver a budget that meets the needs of the nation. We have listened and we have delivered on key asks.

“Today’s vote sends a signal that this parliament can work together during the national emergency to support our economy and public services, continue the vaccination programme and drive our recovery from the pandemic. I remain committed to further dialogue with all parties in the coming days to build and reflect consensus across parliament and secure the budget’s passage.”

She added: “I also welcome parliament’s approval of our tax policies, which deliver the certainty and stability that is needed from the tax system for individuals and businesses in Scotland.

“No Scottish taxpayer will pay more income tax in 2021-22 than they do now on their current income and, for a fourth consecutive year, more than half of Scottish income taxpayers will pay less tax than if they lived anywhere else in the UK.”