16 January 2009
By David Scott in Edinburgh
Scottish Finance Minister John Swinney has defended his controversial budget proposals in the face of opposition attacks.
Swinney told the Scottish Parliament on January 14 that in addition to supporting economic recovery, the budget would provide a rising share of public expenditure to support local authorities, NHS Scotland and others in providing 'vital public services and growth'.
He also announced initiatives aimed at securing the support of other parties in the Parliament, which will be vital if the Budget Bill 2009/10 is to receive parliamentary approval.
These include assurances that the government would provide 1,000 extra police officers – a commitment made to the Scottish Tories last year; a £1.7m investment in universities and colleges; a £3.5m financial supplement for the capital city Edinburgh; and energy-efficient measures.
Under Swinney's proposals business rates will be cut and council tax frozen for a second year. The Budget Bill 2009/10 paves the way for spending £33bn. It allows £230m to be brought forward to support a six-point 'recovery programme' to tackle the economic crisis.
Swinney said the budget would help the country 'weather the economic storm, protect jobs and boost prospects for a strong recovery'.
But Labour disagreed. Finance spokesman Andy Kerr said: 'Finance minister John Swinney may claim it will boost investment and support jobs but the SNP are not following the lead shown by Labour at Westminster by providing more money for skills and retraining.'
CBI Scotland said it very much welcomed a further cut in business rates for small firms and efforts to keep council tax bills down.
Iain McMillan, director, said it was crucial MSPs 'behaved collectively' in view of the economic problems and that Parliament passed a budget that provided businesses with the certainty and stability it needed.
Swinney said the Bill meant that tens of thousands of small businesses in Scotland would pay no business rates at all from April, while the government had also put in place the resources to allow the council tax to be frozen for a second year.
The minister said the projects brought forward were a 'strong economic stimulus' that would boost investment and support a total of 4,700 jobs. The budget plans include £30m to allow Scottish Enterprise to speed up investment of strategic infrastructure projects; new investment in road projects; £50m brought forward for the NHS to allow 'vital' capital projects to go ahead; £10m brought forward for affordable housing; and £5m to tackle fuel poverty.
Ministers are also involved in talks aimed at allowing councils to accelerate their capital programmes.
PFjan2009
