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Retail bosses weigh in as Budget impasse raises fears of Holyrood election

Holyrood's stage one vote on the Budget is due to take place on Thursday.
Holyrood's stage one vote on the Budget is due to take place on Thursday.

Retailers have intervened over the Budget deadlock by warning any delay to Holyrood passing the £33 billion package could damage the high street.

Opposition parties have said they cannot support Finance Secretary Derek Mackay’s draft tax and spending plans as they stand ahead of its first vote on Thursday.

It has forced the SNP convener of the Scottish Parliament’s finance committee to plead with rival parties to change tack or face an “unwanted” election.

David Lonsdale, from the Scottish Retail Consortium, said: “In the current volatile economic and political climate, businesses need as much certainty as possible.

“That’s why it’s crucial MSPs take a collegiate approach to ensure a Budget which supports economic growth is passed without delay.

“Robust debate and scrutiny over the coming days is both right and necessary, however any failure to pass a Budget in good time would add a thick layer of uncertainty at an already challenging time for many businesses.”

As a minority administration, the SNP needs one other party to back the Budget or abstain from the vote.

Governments fall if they cannot get their annual financial plan through parliament.

Last year, the Greens revealed they could support the Budget in the run-up to stage one, the first of three chamber votes on the bill that expresses Holyrood’s view on its general principles.

But the Scottish Greens’ co-convener Patrick Harvie said they cannot back it this year because of “hugely damaging” cuts it imposes on local services.

Scottish Conservative shadow finance secretary Murdo Fraser said they will only support the Budget if independence is shelved and the Scottish Government closes the tax gap between Scotland and the rest of the UK.

From April, taxpayers in England will pay income tax at the 40p rate if they earn more than £50,000 a year – while in Scotland it is proposed people will pay the higher rate of 41p on earnings above £43,430.

More than half (55%) of all working Scots will pay less in tax than those on equivalent wages down south.

Scottish Liberal Democrat leader Willie Rennie said they could reach a deal if the SNP “park the issue of independence for the rest of this parliament”.

“As it stands, we will not be voting for the budget at stage one,” the North East Fife MSP added.

Bruce Crawford, the convener of Holyrood’s finance committee, took to Twitter to urge political rivals to support the 2019-20 Budget.

He said: “Opposing it would mean voting down additional spending on our NHS, education, welfare and local services; causing serious disruption & risking unwanted Scottish Parliament election.”