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Scottish budget expected to pass Labour to support Scottish budget
(about 2 hours later)
The Scottish Government's budget for the coming year is expected to be passed by parliament, only a week after MSPs rejected the spending plans. Scotland's Labour leader has confirmed his party will vote in favour of the SNP's £33bn budget for the coming year when they come before parliament later.
The SNP minority administration at Holyrood now has enough support, from the Tories and Liberal Democrats, to pass the £33bn proposals. Iain Gray made the announcement before Wednesday's 1700 GMT vote that Labour MSPs would support the budget.
But ministers are still hoping to win backing from Labour and the Greens. The move means all three major opposition parties will support Finance Secretary John Swinney's plans.
MSPs are expected to vote for emergency fast-track measures allowing the Budget Bill to be decided in one day. The SNP minority government clinched a vital deal with the Lib Dems to ensure the latest plans would go through.
Labour, the Liberal Democrats and the Greens combined to vote down the budget last week, saying it had not done enough to see Scotland through the economic crisis. The move came after Labour, the Liberal Democrats and the Greens combined their votes to reject the budget last Wednesday at Holyrood.
But the Lib Dems will now vote for the plans after ministers agreed to take forward a strategy on boosting the economy. They said it had not done enough to see Scotland through the economic crisis.
What we are prepared to do to Calman, to the Treasury and to other bodies is to set out the unanswerable case that the Scottish Parliament needs to have the full range of financial and borrowing powers John SwinneyFinance Secretary Finance Secretary John Swinney told BBC Radio Scotland's Good Morning Scotland programme: "After last Wednesday we engaged in fresh discussions with the political parties and the Lib Dems have come to us with a proposal about some strategic economic and financial co-operation with the government in a whole number of areas. What we are prepared to do to Calman, to the Treasury and to other bodies is to set out the unanswerable case that the Scottish Parliament needs to have the full range of financial and borrowing powers John SwinneyFinance Secretary Mr Gray said his party was prepared to come on board after claiming the SNP administration had pledged to introduce nearly 8,000 extra apprenticeships next year.
He added that they had also won an undertaking to explore the possibility of repeating that boost in 2010-11 in a special summit with employers.
MSPs are now expected to vote for emergency fast-track measures allowing the Budget Bill to be decided in one day.
Following discussions with Mr Swinney, the Lib Dems were the first party to announce they would vote for the plans after it was agreed to take forward a strategy on boosting the economy.
Mr Swinney told BBC Radio Scotland's Good Morning Scotland programme: "After last Wednesday we engaged in fresh discussions with the political parties and the Lib Dems have come to us with a proposal about some strategic economic and financial co-operation with the government in a whole number of areas.
"The government has had a discussion and come to an agreement with the Lib Dems and we welcome that.""The government has had a discussion and come to an agreement with the Lib Dems and we welcome that."
Under the deal, SNP ministers will make a submission to the Calman Commission - which is reviewing devolution - on borrowing powers for the Scottish Parliament.Under the deal, SNP ministers will make a submission to the Calman Commission - which is reviewing devolution - on borrowing powers for the Scottish Parliament.
Mr Swinney insisted it was not an embarrassing concession to co-operate with Calman - a forum the SNP had previously refused to work with. Mr Swinney insisted it was not an embarrassing concession to co-operate with Calman - a forum the SNP has criticised because it ruled out discussing independence.
He explained: "What we are prepared to do to Calman, to the Treasury and to other bodies is to set out the unanswerable case, which I think has now become ever more obvious to people with issues such as the Forth replacement crossing, that the Scottish Parliament needs to have the full range of financial and borrowing powers which will allow us to manage our finances in a more effective and efficient way than we do."He explained: "What we are prepared to do to Calman, to the Treasury and to other bodies is to set out the unanswerable case, which I think has now become ever more obvious to people with issues such as the Forth replacement crossing, that the Scottish Parliament needs to have the full range of financial and borrowing powers which will allow us to manage our finances in a more effective and efficient way than we do."
Mr Swinney said the issue of borrowing powers was a critical one and he hoped progress could be made by putting the case to the Calman Commission.Mr Swinney said the issue of borrowing powers was a critical one and he hoped progress could be made by putting the case to the Calman Commission.
The SNP/Lib Dem deal will also involve the creation of a finance sector jobs task force and a review of Scottish public spending.The SNP/Lib Dem deal will also involve the creation of a finance sector jobs task force and a review of Scottish public spending.
Despite already having enough votes, ministers said they were looking for the broadest possible support - and have made offers to Labour, which demanded 15,600 new apprenticeships over two years, and the Greens, who have asked for a £100m-a-year scheme for free home insulation.
The government has not disclosed details of what has been put on the table, but warned any spending commitments were restricted by a backdrop of "scarce resources".
The emergency parliamentary measures will allow MSPs to take all three scrutiny stages of the Budget Bill in a day, culminating in the final, crunch vote at 1700 GMT.The emergency parliamentary measures will allow MSPs to take all three scrutiny stages of the Budget Bill in a day, culminating in the final, crunch vote at 1700 GMT.