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Swinney seeks deal on budget plan Swinney sets out budget proposals
(about 2 hours later)
Finance Secretary John Swinney has said he will pursue deals with other parties in an effort to get his budget endorsed at Holyrood. The Scottish Government has announced details of its £33bn budget plans for the next financial year.
He is about to publish details of the Scottish Government's budget plans for the next financial year. The 2009-10 spending proposals include £230m brought forward for public building projects to tackle the current economic downturn.
These are expected to set out plans to speed up £260m of capital investment in key projects, which it is hoped will create 4,000 jobs. Finance Secretary John Swinney said it would support almost 4,700 jobs and keep the Scottish economy moving.
The support of other parties is needed if the budget is to be approved. The minority Holyrood government will need support from opposition parties to approve the budget.
Mr Swinney told the BBC's Good Morning Scotland programme: "I don't have a deal just now, I am still involved in discussions with other political parties. They have been setting out their own demands in return for their support for the Budget Bill, which has been laid before parliament.
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 Iain GrayScottish Labour leader Labour wants it reshaped to target action on boosting the economy, while the Lib Dems' call for a 2p income tax cut has already been dismissed by ministers.
"There are 47 members of the SNP government parliamentary group and that is not enough to carry the budget within parliament, so I need to bring people together across the parties and I am utterly committed to doing that." 'Vital relief'
The government has £33bn to spend in the coming year. Mr Swinney, who is still in talks with opposition parties, said: "This is a budget to support economic recovery.
Labour want the budget reshaped to target action on boosting the economy, while the Lib Dems have called for a 2p income tax cut. "As we begin to feel the full effects of the downturn, it is the choices we made 14 months ago and are intensifying now that mean tens of thousands of small businesses will pay no business rates at all from April.
The Budget Bill setting out the government's plans was laid before the Scottish Parliament on Thursday and will be formally published on Friday. "It is our foresight that put in place the resources to freeze the hated council tax, providing vital relief for hard-pressed bill payers when tough economic conditions mean they need it the most."
But alongside that current expenditure, ministers will also set out plans to boost capital spending in health and education projects. Part of the accelerated spending is likely to include cash for the SECC Arena in Glasgow, more work on the Fife Energy Park and improvements to the Edinburgh "bio-quarter".
With Treasury agreement, they are accelerating £260m of investment. Road projects include dualling the A75 from Cairntop to Barlae, in the South of Scotland, the Fochabers bypass, in Moray, and on work on the A9 at Moy, Carrbridge and Bankfoot.
Public spending Transport authority SPT will also speed up the delivery of park-and-ride services between Ayrshire, Lanarkshire, East Renfrewshire and Glasgow.
Finance Secretary John Swinney will explain how that will be spent and will forecast that the investment could produce 4,000 much-needed jobs. In health, £50m will be brought forward to deliver vital NHS projects, including new Dental Centres in Cumnock, Ayr, Campbeltown and Inverness and the new Foresterhill Health Centre in Aberdeen.
Mr Swinney said the Lib Dems' tax cut proposal "could not be done". And £10m will be brought forward forward for affordable housing in 2009-10 as well as £5m to tackle fuel poverty, while £13m will be invested in colleges and universities.
He said: "It would undermine the prospects of economic recovery if we reduced public spending by £800m."
However, he said other ways of "strengthening" the budget and gaining the support of other parties would be considered.
Labour leader Iain Gray said: "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."
Lib Dem Finance spokesman Jeremy Purvis said: "Our door remains open to the SNP as the economy needs a radical response from this Budget. So far they have been worryingly arrogant and complacent. They must realise that this puts their budget at risk."