SNP Budget backed by MSPs at second attempt

THE Scottish Government's £33 billion budget was passed at the second time of asking in a vote at Holyrood today.

MSPs voted overwhelmingly in favour of the spending plan, exactly a week after it was rejected amid angry scenes in the Scottish Parliament.

The minority SNP administration struck deals with Labour and the Liberal Democrats to secure their support for the Bill today, after both parties voted against it last week.

The Tories again supported the plans.

In the crucial vote MSPs voted by 123-to-two in favour of the budget, with only the Greens opposing the budget.

SNP finance secretary John Swinney hailed the result as a "significant step forward", but stressed ministers now had to deliver.

He said: "This is a budget for economic recovery. Securing parliamentary approval is a significant step forward, but it is only the start of our task.

"Now we must drive forward the plans and ensure they deliver for the whole of Scotland."

Labour voted with the Scottish Government after ministers agreed to an extra 7,800 apprenticeships next year, along with a summit for all those involved in providing apprenticeships.

That falls well short of Labour's original demands for 7,800 apprenticeships to be created every year for the next three years.

However party leaders stressed other factors, such as a town centre regeneration fund and money for retraining unemployed people, were key reasons why they now backed the budget.

The Liberal Democrats had originally demanded a 2p cut in income tax, but voted with the Government after it made a number of concessions to them.

These will see the SNP administration make a submission to the Calman Commission – the Westminster-backed body examining devolution – making the case for Holyrood to have borrowing powers.

This is unlikely to give First Minister Alex Salmond sleepless nights, but may be portrayed by the Liberal Democrats as them persuading the SNP to engage more closely with the Commission.

Other concessions to the Lib Dems include a jobs task force for Scotland's struggling financial sector, the creation of a cross-party body to study public spending, and a commitment to commission school projects this year along with the promise of future funds to support them.

The Greens voted against the budget for the second time, claiming the Government had produced an "inadequate response" to their calls for a home insulation package.

But Mr Swinney said: "The budget will support our economic recovery plan and includes vital measures such as the removal of business rates for tens of thousands of small businesses, the resources to enable councils to freeze council tax and a massive infrastructure investment programme which we will deliver working with our local government partners.

"We have also been able to take steps to invest crucial money in our town centres and in the skills of our workforce through increased modern apprenticeships.

"In the longer term we have agreed to take forward a Finance Sector Jobs Task Force within the context of the Financial Services Advisory Board, press the case for borrowing powers for Scotland for investment, and conduct a joint strategic review of public spending in Scotland – all important measures for the long term health of our economy."

Andy Kerr, Labour's Holyrood finance spokesman said Mr Swinney had made "important and substantial changes" to the budget.

He said: "As a result of Labour discussion and Labour negotiation there will be those extra 7,800 Scots who have the opportunity to take up an apprenticeship."

But he said: "Whilst we have recognised and welcomed the steps the Government has taken today, we can not kid ourselves into believing that as a result of our actions today our troubles are over.

"So we will continue to chase the Government and monitor the Government's action in response to the challenges we face."

Scottish Liberal Democrat leader Tavish Scott said his party had worked to secure a recovery plan at a time when the economy is in a "desperate state" .

He said: "We know from these figures that Scotland is likely now to be in both a deeper and longer recession than the rest of the UK.

"That is why Liberal Democrats worked constructively to secure an economic recovery plan with long term benefits."

Meanwhile Scottish Tory leader Annabel Goldie said: "For the second year running, the Scottish Conservatives have led the way and made the budget better.

"Our total gains of nearly a quarter of a billion pounds have made this a budget for the high street which will help Scotland to weather the worst of Labour's recession and address some of the key issues in Scotland today.

"That is why we voted for the budget last week, and this week. Not for us the petty posturing of Labour and the Lib Dems."

HOW THEY VOTED

MSPs tonight backed, by 123 votes to 2, the third and final stage of the Budget (Scotland) Bill.


• For all the very latest gossip and analysis from Holyrood, visit The Steamie, our political blog