Kate Forbes: 'Very difficult choices' in Scottish budget

Finance Secretary Kate Forbes says she faces "very difficult choices" in drawing up Holyrood's budget, with Covid-19 still posing "acute" problems.

Ms Forbes will set out her spending and tax plans for next year on Thursday.

She said tackling child poverty, helping businesses recover from Covid and the transition to "net zero" carbon emissions would be key priorities.

Holyrood's budget is bigger now than at any point pre-pandemic, with £35bn in block grant funding to be allocated.

But Ms Forbes argues that it is lower than in the previous two years, with extra funding for Covid-19 measures having come to an end despite the pandemic still having an impact.

With the Scottish Greens having joined the SNP in government, the proposals set out by the finance secretary on Thursday could pass through parliament without being amended.

It is unlikely that Ms Forbes will announce any changes to income tax, with the SNP having pledged to freeze rates and bands in May's election.

However, there are competing demands on the cash available, with Ms Forbes saying it would be a "tough" budget for some departments.

She said: "Covid is still with us - we all know that Covid is having an impact on our NHS, our transport system and our justice system. We also know that inflation and the cost of living crisis is affecting families and businesses.

"So the needs are acute, and the budget position right now means it makes for very challenging choices.

"We have chosen to prioritise three very important things - tackling child poverty, the transition to net zero and helping businesses to recover."

There will be a "significant" increase to the NHS budget, with the government having pledged to top up health funding by 20% across the parliamentary term.

Ms Forbes also said she would seek to "protect" the settlement for local councils, but said that "inevitably there is never enough money for everybody to be happy".

Despite questions over the future of road-building projects, Ms Forbes also said she would not "deprioritise" funding for the dualling of the A9 and A96.

And she said ferries under construction at the nationalised Ferguson shipyard "have got to be finished, no ifs no buts".

She said: "It's a question of accountability. We've invested substantial sums of money in this, so on a weekly basis the conversation I have with the turnaround director is 'we've invested, we expect, so deliver'."

The SNP's deal with the Greens means Ms Forbes will not need to give ground to opposition parties to get her plans through parliament - although some talks may still be held.

The Scottish Conservatives have called for £62m to be invested in the justice system, with extra cash for the police to spend on new equipment, cars and stations.

Finance spokeswoman Liz Smith said extra funding was "desperately needed to keep the public safe".

Meanwhile, Scottish Labour has called for an "ambitious fiscal stimulus package" to aid economic recovery, including rates relief for retailers, hospitality and leisure firms.

Finance spokesman Daniel Johnson said: "High streets across Scotland are fighting for survival. This budget is a chance to correct the course and make sure our recovery saves businesses, protects jobs, and helps communities thrive."