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John Swinney urged to re-think 2013-14 spending plans Scottish government budget plan approved in principle
(about 9 hours later)
Holyrood's opposition parties have called on the Scottish government to change its budget priorities. The Scottish government's budget plans for the year ahead have been approved in principle by parliament, in the face of calls to reverse college cuts.
The plea has come ahead of a debate on the SNP's 2013-14 spending plans. The £28.6bn proposals will aid economic recovery despite the global economic downturn and Westminster funding cuts, Finance Secretary John Swinney said.
Labour wants the £35m college cut dropped; the Tories want Scottish Water taken out of public control and the Lib Dems want nursery provision extended. Opposition politicians said colleges were being "hammered", despite their key role in training people for work.
Scotland's Finance Secretary John Swinney said he would work with all parties to deliver href="http://www.scotland.gov.uk/Resource/0040/00402310.pdf" >a budget bill for "jobs and growth". The SNP government's href="http://www.scottish.parliament.uk/parliamentarybusiness/Bills/58655.aspx" >Budget Bill still requires final approval by MSPs.
However, he said any alternative proposals must be funded by savings elsewhere. Speaking at the Scottish Parliament, Mr Swinney said his government's budget, funded by the Treasury, was being cut by about 8% in real terms between 2010-11 and 2014-15, as Westminster ministers seek to cut the spending deficit.
Mr Swinney added: "As in previous years we will continue to work collaboratively with all parties to build agreement on the Bill's contents and to secure a budget that meets the needs of Scotland's people and its economy. The finance secretary said his plans would create jobs and support business, as well as keep up spending on infrastructure projects and public sector reform.
"But I have had to make difficult choices in order to deliver a sound budget and I would call on those who wish to make changes to face the same discipline. Mr Swinney also said help for young people included the offer of education or training to unemployed 16 to 19-year-olds and maintaining college student numbers.
"To those who argue that I should make changes, or increase funding for particular areas, my answer is this: Scotland lacks the full powers of an independent nation and must operate within fixed resources. "I believe this budget provides a bold and ambitious programme of investment in our people and infrastructure, in the context of the most challenging financial environment Scotland has faced since devolution," he said.
"If you want to see changes and increases to sections of the budget, you must also demonstrate how you will pay for it." "The government has taken decisions to prioritise employability and economic recovery, to build for the future and to ensure that our public services are supported in the years to come."
He said the total budget, which amounted to about £28.6bn from the Treasury, would "accelerate economic recovery" in the face of Westminster constraints. Labour's Ken Macintosh said there were some areas of agreement between his party and the Scottish government, but added: "We are divided on the SNP's claim that this is a budget for jobs and growth, when all the evidence points to the contrary."
Labour wants the government to reverse a £35m college cut, invest extra UK cash in housing and reinstate the "full scope" of rail improvements between Edinburgh and Glasgow. Mr Macintosh said an extra £35m could be found for colleges from efficiency savings and cutting "profligate government vanity projects".
The party's finance spokesman Ken Macintosh said: "John Swinney needs to match his words with his actions. He added: "Last year, the cabinet secretary was forced into an 11th-hour U-turn on cuts to college funding, but despite that, the college budget was still slashed by £52m, with the result that there are 70,000 fewer people at college this year than there were three years ago.
"These are three budget decisions which are fair, affordable and which would make a genuine difference to employment prospects and economic confidence here in Scotland. "This year, the SNP's choice is to hammer colleges yet again - and let's be in no doubt, this choice has not been forced on him by Westminster, this is a decision made in Scotland."
"The SNP cannot blame Westminster if they fail to use the powers and funding they have at their disposal." Tory MSP Gavin Brown said "almost nobody" had accepted the government's argument that the budget supported jobs, when the plans were first launched in September.
Conservative finance spokesman Gavin Brown repeated his call to take Scottish Water out of public hands - which he estimates will save "around £250m" over two years - and restore the housing budget to previous levels. He said: "We've all seen the very depressing youth unemployment figures in Scotland, and indeed across the United Kingdom, but still we see a drastic reduction to the colleges budget next year.
He added: "Taking Scottish Water out of public hands would allow the Scottish government to put £70m back into the housing budget while leaving millions more for capital projects. "It's £546m, according to the government, in the current year and it will be £511.7m, according to the Scottish government, next year."
"It has been our view for some time that this new business model would create around £250m over two years. Scottish Liberal Democrat leader Willie Rennie said his party would support the budget if more cash was put back into colleges, adding: "Colleges do play an important role in making sure that we have the workforce ready for boosting the economy."
"That would help turn around an industry which is absolutely central to the overall economy in terms of jobs and building homes for the next generation." Mr Rennie also said 40% of the poorest two-year-olds should get 15 hours of nursery education each week.
'Triple boost' Mr Swinney has offered to work with opposition parties on the final budget, but said alternative proposals must be funded by savings elsewhere.
Liberal Democrat leader Willie Rennie has called on the government to extend free nursery provision to more two-year-olds and reverse planned cuts to the college budget. MSPs backed the general principles of the Budget Bill by 66 votes to 41, with 12 abstentions.
He explained: "Extending free childcare to more two-year-olds could give a triple boost to Scotland's economy. The legislation still faces two further stages of scrutiny at Holyrood before being finally passed.
"It will deliver opportunities for our children, it will allow more parents to return to work and the government's budget will provide more jobs to a sector dominated by women.
"These are fair decisions which will deliver opportunities for hard-working people across Scotland."
Mr Swinney set out his initial spending priorities for the budget in a statement to MSPs in September last year.
He identified £40m for "affordable housing", a new energy skills academy and an employer recruitment scheme designed to help create up to 10,000 jobs for young people.