Concessions on police, the environment and cash for capital help win support of Tories, Greens and Margo
Margo MacDonald: Won extra money for Edinburgh council
THE Scottish Government's historic first budget passed its initial parliamentary test last night – thanks to the co-operation of an unlikely alliance of Tories, Greens and Margo MacDonald.
In a knife-edge vote after a four-hour debate, the government won by 64 votes to 62, with the two Green MSPs abstaining.
All 47 SNP MSPs supported the budget, backed by the 16 Tories and Ms MacDonald, the independent who represents the Lothians.
However, in order to secure their support, John Swinney, the finance secretary, had to make a series of concessions.
He promised the Conservatives that he would look again at finding more money for extra police officers and at accelerating the introduction of a promised business-rate cut.
To assuage the Greens, he said the Scottish Government would in future insist on a "carbon" assessment of the next spending review and repeated it would not continue the £6 million fund to set up new airline routes to and from Scotland.
Mr Swinney also pledged to give more money to Edinburgh council to recognise the city's status as the capital, one of Ms MacDonald's key demands.
After a day of tension at Holyrood, the final vote saw Labour and the Lib Dems round on the Conservatives and their leader, Annabel Goldie, for supporting the SNP administration.
Tavish Scott, the Lib Dem finance spokesman, said: "The Tories deserve nothing but derision for having sold their votes to the SNP for a half-baked promise. Annabel Goldie's claim in last year's election campaign to be the only person standing between Scotland and nationalism now looks very hollow."
A clearly relieved Mr Swinney said the budget had crossed a "very, very important hurdle". But last night's vote is only the start of the process, and he will have to go back over the books to see if he can find the extra cash to fund what the Tories want on the police and business rates.
During the debate, Mr Swinney appeared to hint heavily that money for extra officers could be found, but he was more reticent on business rates. He told MSPs he was looking at the options but did "not want to raise expectations".
Derek Brownlee, the Tories' finance spokesman, said: "Our support is not indicative that we will support the budget in the final vote next week, but we will, as we have said for some months now, wait until we see the final make-up of the budget before we reach a decision."
The Federation of Small Businesses Scotland welcomed the budget – and the move on business rates. Andrew Watson, its spokesman, said: "This budget is good for business.
"This is the second time the full parliament has requested the Scottish Government to look again at the implementation of the small business bonus and comes on the back of a similar recommendation from the finance committee which scrutinised the detail of the bill.
"We are encouraged that the Scottish Parliament has – so far – understood the importance of the policy to the tens of thousands of small businesses."
• Tension over the vote heightened when Aileen Campbell, an SNP MSP, had been taken to hospital after an accident involving scalding soup. She was treated for burns, given a tetanus injection and returned to Holyrood to cast her vote.
Blushes, three little words and an uncomfortable position: Margo strikes againWHAT a difference minority government makes to political relations, writes Peter Mac- Mahon. Five years ago, former SNP MSP Margo MacDonald had fallen out acrimoniously with her party and its then leader, John Swinney.
Yesterday, all was sweetness and light as the two indulged in parliamentary flirting over one of Ms MacDonald's pet projects: securing special funding for Edinburgh as the capital city.
During yesterday's debate, Ms MacDonald told Mr Swinney that all he had to say to her was "three little words".
Immediately, several Liberal Democrat MPS suggested they would be "I love you." Blushing slightly, the finance secretary declined to declare his undying affection for his one-time colleague but he did say three other little words: "Capital city supplement."
Ms MacDonald has long argued that because it has a parliament and a palace, Edinburgh deserves a special financial settlement befitting its status.
A canny operator, the woman who defied expectations by winning a seat as an independent in the last two elections used the power her one vote gives her over the minority administration to good use, in the interests of the city she represents.
Though Mr Swinney has yet to put a figure on the extra money, there was a twinkle in Ms MacDonald's eye last night.
Refusing to admit she had the government in an uncomfortable position, she said: "I will use any opportunity to make the case for the capital. I have always been one for a good bargain."
