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Scottish budget: Colleges and housing sector given extra £48m Scottish budget: MSPs pass government spending plans
(35 minutes later)
Scotland's finance secretary has promised a cash boost to colleges and the housing sector as he seeks to win approval for his spending plans. The Scottish government's £30bn budget for the year ahead has been passed by parliament, in the face of severe criticism from opposition parties.
During Holyrood's budget debate, John Swinney told MSPs there would be an additional £38m for affordable housing and renovation projects. Finance Secretary John Swinney agreed to boost college and housing funding, following demands from Labour, Tories and the Lib Dems.
He also said college funding would increase by £10m next year. But the opposition claimed budgets were still being reduced.
Opposition parties said Mr Swinney's budget measures for the year ahead were "disappointing". Mr Swinney said his spending plans would promote economic recovery, despite being hit by Westminster cuts.
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Opposition MSPs said the budget failed to encourage growth, although the SNP's overall majority will ensure the spending plans are passed. In a series of last-minute changes, Mr Swinney said there would be:
Labour's finance spokesman, Mr Macintosh, said of the budget: "There is nothing new here, nothing fresh, we are stuck with the same prescription the SNP have offered us for two years running and for two years running they have promised jobs and growth and yet there have been no jobs and no growth."
  • A £61m increase in college funding over the three-year spending review period, putting the college budget at £522m in 2013/14 and £522m in 2014/15.
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  • An additional £38m for housing, bringing total budget for housing supply to £859m.
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  • £2m to bring empty town centre properties into residential use.
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  • An extra £10m for vital trunk road and bridge repairs.
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  • and £1m to double support for entrepreneurship.
The cash to pay for the changes will come from squeezing loans to public utility Scottish Water, and other areas.
Mr Swinney said it was important to strike the "best possible deal we can" for colleges, to deliver for young people in the future.
He told the Scottish Parliament: "The Scottish government has delivered a budget for growth.
"We are building on our original spending plans having listened to the views of parliament and the country and are delivering extra funding for housing, creating jobs and cutting emissions, funding to regenerate our town centres, more support for entrepreneurship, investment in our trunk road network and a decisive further investment into our colleges."
The broader strategy? Self-evidently, to produce a balance budget, as per the law.
Once again, to divert as much as feasible to capital investment.
And, above all, to seek to pacify, once and for all, the political controversy over college funding.
Colleges said they were "delighted" with the deal, but the National Union of Students said earlier government plans for a £35m funding reduction still meant a £24.6m cut in the college budget.
Delivering his verdict on the budget, Labour finance spokesman Ken Macintosh, said: "There is nothing new here, nothing fresh, we are stuck with the same prescription the SNP have offered us for two years running and for two years running they have promised jobs and growth and yet there have been no jobs and no growth."
Gavin Brown, of the Conservatives, said of the Scottish government: "They asked to be judged on what this budget did for the economy.Gavin Brown, of the Conservatives, said of the Scottish government: "They asked to be judged on what this budget did for the economy.
"Mr Swinney said that he would put every single additional pound that he could into the economy, but we see disappointing results in colleges, we see disappointing results when it comes to housing and we see more disappointing results when it come to taxation.""Mr Swinney said that he would put every single additional pound that he could into the economy, but we see disappointing results in colleges, we see disappointing results when it comes to housing and we see more disappointing results when it come to taxation."
Mr Brown also attacked SNP MSPs who applauded Mr Swinney's college announcement, adding: "They will regret watching that back on television, I have to say, as I don't think there will be any spontaneous rounds of applause outside the chamber for a £24m cut to colleges."Mr Brown also attacked SNP MSPs who applauded Mr Swinney's college announcement, adding: "They will regret watching that back on television, I have to say, as I don't think there will be any spontaneous rounds of applause outside the chamber for a £24m cut to colleges."
Spending deficit
On the same theme, Scottish Liberal Democrat leader Willie Rennie told parliament: "I found it astonishing there was celebration on the SNP benches when a cut of £25m was announced - that's nothing to celebrate.On the same theme, Scottish Liberal Democrat leader Willie Rennie told parliament: "I found it astonishing there was celebration on the SNP benches when a cut of £25m was announced - that's nothing to celebrate.
"£10m was nothing compared with the £35m cut that was planned and I find that really, really, disappointing.""£10m was nothing compared with the £35m cut that was planned and I find that really, really, disappointing."
Mr Rennie also expressed regret that ministers did not act on his call to extend childcare to more two-year-olds.Mr Rennie also expressed regret that ministers did not act on his call to extend childcare to more two-year-olds.
Mr Swinney, who has asked MSPs to back the government's href="http://www.scottish.parliament.uk/parliamentarybusiness/Bills/58655.aspx" >Budget Bill, said his 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. The Scottish government said its 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.
Before Mr Swinney announced his concessions, opposition politicians had backed concerns from the National Union of Students that colleges faced a £34.6m funding cut next year, and called for the reduction to be reversed.
In addition to college funding, the Conservatives said previous cuts to the housing budget needed to be reversed, and cash set aside for town centre regeneration.
The Liberal Democrats, who have been holding budget talks with Scottish ministers, want childcare provision for two-year-olds extended in line with a commitment from the UK government.
Party leader Willie Rennie said: "Scottish Liberal Democrats have worked constructively with the Scottish government, as we did last year, to influence the budget.
"In tough economic times we must make choices which deliver a stronger economy in a fairer society."
Labour said the extra cash given to Scottish ministers by the UK government in the autumn statement should be used solely for housing.