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Budget talks ahead of crunch vote Scottish budget rejected by MSPs
(about 17 hours later)
The Scottish Government has been continuing last-minute talks to win enough support to pass its budget. The Scottish Government's budget for the coming year has been rejected by parliament, despite ministers making last-minute concessions.
Labour and the Liberal Democrats intend to vote against the £33bn spending plans for 2009-10, after negotiations with ministers broke down. The SNP's £33bn plans fell on the casting vote of the presiding officer after being tied at 64 votes to 64.
The minority government is hoping to get the budget approved in parliament, with help from the two Green MSPs and the Conservatives. The government won the support of the Tories but the two Green MSPs withdrew their backing shortly before the vote.
Ministers said rejection of the budget could cost Scotland £1.8bn. First Minister Alex Salmond said the Budget bill would be resubmitted and a timetable was being drawn up.
Finance Secretary John Swinney told BBC Radio's Good Morning Scotland programme the budget would boost the Scottish economy. Mr Salmond said: "Given the circumstances we should try again and we are prepared to do that."
He said: "If people vote against the budget at 5 o'clock, they're voting against an increase in public expenditure of £1.8bn. He said: "We have already resubmitted it through the Budget process and recommended a timetable which will bring it to decision in mid-February if MSPs give up the first week of their February holiday, which I think would be a good idea under the circumstances."
"Members of parliament have to think how are they going to explain to their constituents that they've turned their back on investment in the Scottish economy, the creation of 5,000 jobs to support the construction sector. Salmond ready to try Budget again
From a Green perspective, there is a lot of big, bad stuff in this budget Patrick HarvieGreen MSP class="" href="http://www.bbc.co.uk/blogs/thereporters/briantaylor/2009/01/here_and_now.html">Brian Taylor blogs on the budget "The duty for me is to put forward a budget that convinces parliament and that's what I'm working to do." The first minister called on MSPs to think of the consequences of not agreeing a Budget.Labour and the Liberal Democrats voted against the spending plans, saying they were inadequate to see Scotland through the economic downturn.
Scottish Labour, which wanted changes including more money for apprenticeships, said the concessions offered by the government were not enough. The Tories, who won a £60m concession for their town centre regeneration scheme initiative, backed the budget - and blamed Labour for its rejection.
The party's leader, Iain Gray, said: "Despite a series of meetings, we regret the response from Finance Secretary John Swinney so far continues to fall short of what needs to be done. Independent MSP Margo MacDonald voted for the budget.
"Nonetheless our door remains open in the sincere hope that they will now consider their decision and act in the interests of the Scottish people and the economy." The Greens, who had demanded a £100m-a-year free home insulation scheme, could not reach agreement with ministers.
The Liberal Democrats' call for a 2p income tax cut has already been rejected by ministers. BUDGET VOTE - FOR SNP 47Conservatives 16Independent 1
Meanwhile, talks have been on-going between ministers and the Greens, who have demanded a £100m-a-year free home insulation scheme. The government had offered a £22m pilot scheme, but even a last-minute offer to increase the pot by £11m failed to get the party on board.
Mr Swinney has offered a lower-price pilot scheme, but Green MSP Patrick Harvie said he did not think his party's demand was unreasonable. Green MSP Patrick Harvie was furious about the last-minute nature of the negotiations.
He told BBC Scotland: "From a Green perspective, there is a lot of big, bad stuff in this budget. He said: "After such a long period of discussing with the cabinet secretary and his colleagues a very detailed and very well worked-up set of proposals, we were left in a last-minute farce - messages flying about minutes before the budget debate, phone calls this way and that, written statements and so on.
"I know that £100m is a substantial demand, or a substantial request, but there is a substantial amount in this budget we would be asked to overlook if we were to vote for it. BUDGET VOTE - AGAINST Labour 46Lib Dems 16Greens 2Presiding Officer
"I really hope that John Swinney and others right across the spectrum will see the value of what we are proposing, and that we will see a budget pass this evening." "At the final analysis, we took the view that not enough had been offered to make the proposal meaningful. We asked for an increase and there were too many caveats attached."
Emergency measures Following the rejection, Finance Secretary John Swinney told parliament: "In light of the vote that has just taken place and the serious position in which this leaves Scotland, the Scottish Government will not delay in seeking to resolve the Budget issues for next year.
It is thought the Conservatives, whose list of demands includes more action on hospital infections and a town centre regeneration fund, will vote for the budget. "That is why I would like to give notice today that I will reintroduce the 2009-10 Budget Bill to parliament at the earliest possible opportunity and certainly within a matter of days."
Ministers also hope they can secure support from independent MSP Margo Macdonald. Mr Swinney offered Labour assurances over helping apprentices finish their training, but this was dismissed by the party's finance spokesman Andy Kerr, who branded the budget "wholly inadequate".
The Scottish Government said its budget would support thousands of jobs and bring forward £230m worth of transport, health and education projects to get the economy moving again. Patrick Harvie was furious with the nature of the talks class="" href="/1/hi/scotland/7857087.stm">Q&A: Scottish budget rejection
It said that rejecting the spending plans would cost Scotland £1.8bn of spending in 2009-10, under emergency measures allowing ministers to spend at the latest version of the current year's budget. Scottish Tory leader Annabel Goldie said: "Labour's actions are grossly irresponsible and quite frankly pathetic.
"It is political posturing at its very worst and will only increase uncertainty during Labour's recession."
Dismissing the Tory attack, Labour said the budget failed to recognise the "serious nature of the current economic climate".
Mr Kerr said: "I hoped the government would stop playing games and produce a budget which would in fact protect the Scottish economy and its people. They have failed to do so."
The Lib Dems, whose call for a 2p income tax cut was earlier rejected by the Scottish Government, said they were still open to talks.
Tavish Scott, the Scottish Liberal Democrat leader, said: "We warned the SNP that this budget was an inadequate response to the recession.
"We are ready to talk about how we can build a better budget that helps families, individuals and businesses."
If the new financial year begins in April without a budget being passed, the government would be allowed to spend the latest version of the current year's budget.
But ministers said this would hit Scotland with a £1.8bn spending cut.
Presiding Officer Alex Fergusson said it was an established convention for someone in his position to vote for the "status quo".