08 February 2008
The future of the Scottish National Party government led by First Minister Alex Salmond was secured when its first budget was approved by MSPs this week.
Salmond had threatened to resign and throw Scotland into an unwanted election if the £30bn budget was voted down by the Holyrood Parliament, in which his Scottish National Party holds only a minority of seats.
But in the vital vote on February 6, the Labour opposition sprang a surprise by joining Liberal Democrats and Green MSPs in abstaining, giving the government a bloodless victory. Its main proposals, including a council tax freeze, will now go ahead. The vote was 64 in favour and one against, with 60 abstentions.
Salmond and Finance Minister John Swinney had spent the past week negotiating with the Tories and the two Green MSPs, as well as the one independent member, Margo MacDonald, to ensure the budget's passage.
Swinney said the government had worked hard to achieve consensus. 'This budget will create a stronger, more confident and prosperous nation – and that is what the people of Scotland deserve,' he said.
Labour's finance spokesman, Iain Gray, said councils had not been given enough cash to provide vital services, adding that his party would continue to press for the budget to be directed to 'social justice'.
In response to Conservative demands, 1,000 police officers will now be recruited by March 2011, an increase of 500 on previous plans. Swinney also announced that from next April, business rates would be abolished for up to 120,000 small businesses and cut by 25%–30% for a further 30,000.
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