Brown rejects SNP's £500m funding call
Published Date:
02 April 2008
By Gerri Peev
GORDON Brown has slapped down Nationalist calls for Scotland to be given more than £500 million in funding for prisons and council tax benefit amid escalating tensions between Westminster and Holyrood.
A meeting between John Swinney, the finance secretary, and Yvette Cooper, the Treasury minister, ended in deadlock yesterday, with the SNP invoking the devolution dispute process for the first time since taking power.
Asked about the stand-off, the Prime Minister said: "I don't think the SNP administration can come to London and say Scotland has been underfunded."
He added that the Westminster government had tried to be "fair" to all parts of the UK.
Yesterday's meeting ended in Mr Swinney demanding a joint ministerial committee to resolve the row.
The finance secretary had asked to meet Ms Cooper to call for £120 million in funds to go to Scotland after prisons in England and Wales received a £1.2 billion boost to cope with overcrowding. As the money has come from reserves, the Treasury has argued there are no Barnett consequentials, so Scotland will not get the extra share.
Speaking after the talks, Mr Swinney said:
"The Treasury has refused to give us access to resources to which we are entitled. The financial arrangements make it clear we should be given a share of the increase in prisons expenditure south of the Border.
"The Treasury is not acting in an even-handed fashion towards Scotland – on prisons spending or council tax benefit – and the Scottish Government will want to take these issues to the joint ministerial committee to ensure we can get fair treatment for the taxpayers of Scotland."
Despite the invocation of the appeals procedure, sources said yesterday's meeting had been "very friendly".
A Treasury source said Mr Swinney had not suggested Ms Cooper was interfering in business that was not hers, but the Treasury did dispute his claim that the £400 million council tax benefit should be part of the Scottish block grant.
Ms Cooper wanted to be "as helpful as possible" in helping the administration put its policies in action, the source said.
An SNP source agreed the meeting was "cordial", but said tensions were high as this was the first time the "appeals" process was being used to resolve a dispute. The source added: "We are all mature enough to accept there will be differences from time to time."
Fragile relations were tested after Ms Cooper suggested there was a £750 million black hole in the SNP's plans for local income tax. Then, in an e-mail before the meeting, Ms Cooper rejected Mr Swinney's demands for extra cash as a consequence of the prison spending.
Meanwhile, Bill Aitken, the Scottish Tories' justice spokesman said Labour had turned the prisons crisis into a "constitutional drama and had "given the SNP another chance to play the politics of grudge and gripe".
Nicol Stephen, leader of the Scottish Lib Dems, added: "This is hardly a surprise. The UK government has been promising to remove this money from Scotland since before last year's election. The real test will come when the Scottish Parliament votes to get rid of council tax."
A PROCESS OF APPEAL
A JOINT ministerial committee meeting is the official "appeals" process for stand-offs between the devolved administrations.
These committees, bringing together senior ministers from across the UK, were set up in 1999 to smooth the path of devolution.
They have not met since 2002. However, last month Paul Murphy, the Secretary of State for Wales, announced that they were to resume.
An initial meeting is expected in May, followed by a full meeting chaired by Jack Straw, the Lord Chancellor.
The full article contains 613 words and appears in The Scotsman newspaper.
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Last Updated:
01 April 2008 9:37 PM
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Source:
The Scotsman
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Location:
Edinburgh
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Related Topics:
Scottish National Party