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Lib Dems' disappointment over tax cut rejection

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Published Date: 07 January 2009
Liberal Democrats said today they were "extremely disappointed" Holyrood ministers had ruled out personal tax cuts as part of the Scottish budget.
The Liberal Democrats – who are calling for a two pence cut in income tax – held talks with finance secretary John Swinney today.

As a minority government, the SNP administration needs the support of other parties to get its budget proposals throu
gh Holyrood.

And Liberal Democrat chief whip Mike Rumbles claimed: "As it stands, the budget is an inadequate response to the economic storm facing Scotland."

However a spokesman for Mr Swinney said: "We all want to have reasonable discussions about the budget, but the Lib Dems have got to get real."

SNP ministers argue that the tax cuts the Liberal Democrats want would lead to cuts in other areas.

And the spokesman said: "As we address the UK economic downturn, it is the height of irresponsibility to demand an £800 million cut to Scotland's budget, which would slash services, without a word of explanation as to where the cuts would fall."

He added: "The Scottish Government are bringing forward a budget for 2009-10 to begin this April, and we have delivered a six-point recovery plan to help business and families right now."

The spokesman also claimed the time needed to implement cuts in income tax in Scotland meant any reduction could not be brought in before 2010-11.

"As well as being the wrong policy, the earliest the tax powers could be implemented would be 2010-11," he said.

"Rather than offering constructive ideas to address the present downturn, the Lib Dems are clearly bringing forward the wrong policy for Scotland at the wrong time."

However Mr Rumbles stated: "The SNP has to remember that it is a minority government and needs support from other parties."

The Liberal Democrat MSP added: "Our door will remain open to the SNP right up to the budget vote. But we cannot proceed to the negotiating table until the Scottish Government signals that it will consider the principle of personal tax cuts.

"Hard pressed families and individuals need money back in their pockets right now.

"The ball is in their court."

The talks between the government and the Lib Dems took place ahead of the publication of the Budget Bill tomorrow.

And Labour leader Iain Gray urged the Nationalists to focus on jobs and the economy.

He said: "2009 is a year when Scots desperately need serious action from the SNP government not more bluster, spin and excuses. The budget is their first key test.

"Labour and the Parliament has made clear that John Swinney must change his budget in the face of the economic situation. This means more money for skills and retraining, and protection for vital public services."
Mr Gray added: "I am ready and willing to offer Scottish Labour's support for any serious proposal that will boost the economy, but if the SNP's budget puts jobs and services at risk we will not support it."




The full article contains 505 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 07 January 2009 4:41 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Liberal Democrats
 
1

Nevsky,,

Moscow 07/01/2009 17:03:44
Lib/Dems in cloud cuckoo land and Gray with nothing to contribute, no change then!
2

Lumpy Dan,

Partick 07/01/2009 17:09:22
Perhaps if they made a sensible suggestion they would not be so dissapointed at being rubbered eared.Cutting the public purse through tax cuts will only put more capital expediture and jobs at risk..even the normally anti SNP Brian Taylor agreed on BBC Newsdrive tonight..as my wife will testify as I swerved the car in disbelief !

Mike Rumbles silly veiled threat just sums this joke of a party up...moving on .
3

zeitgeist,

07/01/2009 18:24:24
This is the same fiscal nonsense being peddled by the westmonster govt. vis-a-vis the VAT cut designed we are told to stimulate spending. The fault in this policy is of course that it does not protect jobs in Scotland and it prevents govt. from spending these resources on much needed capital projects that would greatly help in creating jobs. All political parties in Scotland should be backing our government's call for the resourcing by westmonster of capital projects such as the new Forth bridge. What they are currently suggesting is that the Scottish Government should find this funding from within its current fixed budget handed down from London. Had the same principle been applied to Broon's govt. then there would have been no bank bailouts, no VAT cuts or any of the other additional expenditure being planned by Broon (whether rational or not). Clearly this would be unacceptable, yet this is what the Scottish Govt. is being told to do. This is unacceptable, and unless something is done (fiscal autonomy or full independance), Scotland faces a very bleak future indeed.
4

Jimmy Le Pie,

07/01/2009 18:27:27
Iain Gray said "Labour and the Parliament has made clear that John Swinney must change his budget in the face of the economic situation. This means more money for skills and retraining, and protection for vital public services."
Mr Gray added: "I am ready and willing to offer Scottish Labour's support for any serious proposal that will boost the economy, but if the SNP's budget puts jobs and services at risk we will not support it."

What about building a bridge???
5

Jock Tamson,

Scotland, Caledonia, Alba 07/01/2009 19:16:55
I am quite convinced that any implementation of the tartan tax would somehow manifest itself as a reduction in Scotland's pocket money - the pocket money we get from Westminster.
6

The Tin Man,

07/01/2009 20:25:16
I think the SNP drones would argue against cutting council tax by the rate of inflation (4% ?), if the Lib Dems were arguing in favor of it. Ho hum.
7

Jock Tamson,

Scotland, Caledonia, Alba 07/01/2009 21:09:17
Smee@8. No need to disguise your infatuation with me.

8

,

07/01/2009 21:36:16
Comment Removed By Administrator
Reason:
9

Elethiomel,

Edinburgh 07/01/2009 23:06:56
#12 They have nearly double the MPs the nationalists have in Scotland though, and Vince Cable, the only man making sense in London. They are also the most internally democratic paarty in the UK by a distance.

I would take the Libs on financial issues, London run or otherwise, over the SNP any day of the week.
10

Andrew Allan,

07/01/2009 23:22:53
Do not follow this link!

www.1227.com

11

,

07/01/2009 23:56:20
Comment Removed By Administrator
Reason:
12

KampungHighlander,

Jakarta 08/01/2009 04:20:15
Liberal Democrats said today they were "extremely disappointed"

They should be used to that, disappointment is the natural state of LibDems.

This is simply more evidence of why the LibDems will never govern.

They only think like an opposition party, wanting to cut taxes without proposing what areas of budget they want cut is totally irresponsible.

If the Scottish Government had the power to run a deficit, then tax cuts with no spending cuts would make some sense for the economy.

But with the current situation of tax cuts automatically leading to an equal cut in Government spending, then this will do nothing to stimulate the economy.

 

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