KATE Forbes has kicked off the Scottish budget debate in Holyrood by confirming more funding for families in an effort to tackle the cost-of-living crisis. 

The Scottish Finance Minister has allocated an extra £290 million in her budget which will be spent on a three-pronged approach from the Government.  

  • The first is to offer £152 to every household in receipt of council tax reduction in all bands
  • Secondly, Forbes will allocate funding to local authorities to pass on £150 to other occupied households in council tax bands A-D. These two measures will reach 1.55m people aross Scotland, which accounts for 73% of all households.
  • Lastly, £10m will be given to continue the Government’s fuel insecurity fund to help households most at risk of self-disconnection or self-rationing of their energy use due to unaffordable fuel costs. 

She also announced further measures to give local councils more powers.

This will include that any existing underspent discretionary housing payment funding being redistributed between councils. This measure will be carried into next year to provide targetted discretionary support.

Furthermore, any any existing underspend of the Scottish Welfare Fund being carried over by local authorities for the same purpose.  

This comes after Forbes announced yesterday that the Scottish Government will not receive extra money from the council tax rebate plan announced last week by Rishi Sunak, which was designed to help alleviate the skyrocketing costs of living. 

However, the UK Government refutes, this claiming that the Barnett consequentials from the plan will bring £565m to be shared between the devolved governments. 

READ MORE: Finance Secretary Kate Forbes announces pregnancy and maternity leave

Commenting on the situation, SNP MP Kenneth Gibson said: "The SNP Scottish Government has had to step up to the mark where the Tories have created a cost of living black hole.
 
“Chancellor Rishi Sunak has over-promised and under-delivered for millions who are struggling to pay their bills – warm words don’t make warm homes."

Commenting on Forbes' proposals, Peter Kelly, Director of the Poverty Alliance, said: "People across Scotland are feeling the grip of poverty tighten on their lives, as the cost-of-living crisis continues to bite. So it was deeply disappointing that Kate Forbes' announcement today mirrored the UK Government's misguided approach to the cost-of-living crisis.

"While any additional cash into people's pockets is welcome, the measures fail to properly target support at people on the lowest incomes.

"This was a missed opportunity to protect people living in poverty from the waves of hardship that threaten to overwhelm them, and a missed opportunity to right the wrong approach taken by the UK Government."

READ MORE: How they voted: Scottish Budget passes amid effort to tackle cost of living crisis

Elsewhere in the Scottish Budget, Forbes announced in her statement that the business sector would recieve additional support after being ravaged by the pandemic. This will include £16m for culture and major events and £3m for small and medium sized enterprises.

The childcare sector will also recieve a further £6.5m.