THE Scottish Government has finally secured enough support to pass its Budget for the coming year, after striking a deal with the Liberal Democrats.
The package was thrown into confusion when it was rejected by the parliament last week, but Alex Salmond now has the guaranteed backing he needs, from the Tories, the Lib Dems and the independent MSP Margo MacDonald.
The First Minister would like
the unanimous backing of all parties in the parliament and he will hope to have done enough to get Green and Labour support when the bill comes up for parliamentary approval today.
But both the Greens and the Scottish Labour Party refused to commit last night to supporting the Budget, as they were waiting for assurances from Mr Salmond on the details of the deals they had been offered.
If they receive the assurances – for the Greens, it is full funding for a £33 million home insulation programme, and for Labour, it is the delivery of 8,000 new apprenticeships – both will back the Budget. If not, they will oppose it.
The Greens were due to have further discussions last night but were waiting until today to confirm their final position.
The decision by the Lib Dems to drop their demand for a 2p cut in income tax – which would have taken £800 million away from the Budget –was key.
The party had insisted on that policy right up to last week's vote that threw out the Budget, but, as soon as that debate was over, its MSPs abandoned this principle and made it clear they were willing to support the Budget for much less.
John Swinney, the finance secretary, yesterday revealed he had agreed to table an official submission to the Calman Commission into devolution, calling for borrowing powers for the Scottish Government – something he supports.
The finance secretary also agreed to set up a finance sector jobs task force, to implement a "strategic review" of government spending, and to give a commitment that the first tranche of schools would be built under the Scottish Futures Trust model this year, something else that was expected anyway.
Mr Swinney said: "I'm very pleased to say that today we have reached agreement with the Liberal Democrats which will assure their support for the government's Budget when it is presented to parliament tomorrow. I think it's important to say at the outset that, quite clearly, we do not agree on absolutely everything between the (Scottish] Government and the Liberal Democrats.
"But what we have secured is an agreement that will ensure the government's Budget can be passed."
Mr Swinney added that the deal with the Lib Dems did not have any cost implications for the Budget, describing it as being about "strategic economic and financial engagement".
Tavish Scott, the leader of the Scottish Liberal Democrats, insisted he had been right to drop his earlier demand for a 2p tax cut, which initially closed the door to the party before the Budget vote last week.
"There's lots of maybes in life and we're dealing with the now and present, and that's where we are," he said.
The Shetland MSP said that moves to discuss borrowing powers with the Calman Commission was a victory, and he claimed that the strategic demands – as opposed to specific spending commitments – was the correct approach.
Mr Scott went on: "Now and again, politicians have got to raise their eyes above the day-to-day nature of what's happening in parliament and look at what's happening to jobs, look what's happening to the country outside parliament and recognise it's important to look to the long term."
However, one of the concessions the Lib Dems claim to have won during their negotiations with the SNP government has raised eyebrows among opponents.
The Conservatives claim that the review of spending, which the Lib Dems claim will save millions of pounds, was promised to them last month.
The Budget was initially expected to be approved in three stages – two this week, with the final debate and vote next week – but parliamentary managers agreed yesterday to accelerate the process and it will now be approved today.
