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Swinney details council tax deal Swinney details council tax deal
(20 minutes later)
Scotland's Finance Secretary John Swinney has given details of a working agreement with local government body Cosla over a council tax freeze. Scotland's Finance Secretary John Swinney has given details of a working deal with local government body Cosla over a council tax freeze.
He said the "historic agreement" would enable the Scottish Government to "deliver on key pledges". He said the "historic agreement" would mean that councils could freeze the levy for the next three years.
In his address to the Holyrood parliament he admitted he was unable to deliver all those pledges. In his address to the Holyrood parliament, Mr Swinney admitted he was unable to deliver all SNP pledges.
He said the government would have to live within the "worst" budget settlement from the Treasury. Labour's Scottish leader Wendy Alexander said the budget was filled with "broken promises".
Mr Swinney told MSPs on Wednesday: "Unlike previous budgets in Scotland, this budget will match our spending with our overarching purpose of government. It is a major step forward in aligning the whole of the public sector in support of our key objectives. She added: "Today is day one, let the government tell us what they are doing, today is a day of broken priomsies.
"There is no commitment to skills, there is not enough on infrastructure and we will be the highest taxed part of the UK given the SNP plans for a local income tax."
Mr Swinney told MSPs on Wednesday: "Unlike previous budgets in Scotland, this budget will match our spending with our overarching purpose of government.
"It is a major step forward in aligning the whole of the public sector in support of our key objectives.
READ IN FULL Scottish Budget - Spending Review 2007 [833KB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader hereREAD IN FULL Scottish Budget - Spending Review 2007 [833KB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here
"We will invest explicitly in making Scotland wealthier and fairer; smarter; healthier; safer and stronger and greener with the overall purpose of increasing sustainable economic growth."We will invest explicitly in making Scotland wealthier and fairer; smarter; healthier; safer and stronger and greener with the overall purpose of increasing sustainable economic growth.
"As part of this transformation we are freeing local government to succeed, removing ring-fencing and enabling councils to allocate resources according to local priorities and in line with a new performance framework.""As part of this transformation we are freeing local government to succeed, removing ring-fencing and enabling councils to allocate resources according to local priorities and in line with a new performance framework."
The minority Nationalist administration needs the support of rival parties to get the budget plans through Holyrood. He also told MSPs that from April next year, 150,00 small firms would see their business rates reduced - "and, in due course, for many removed".
Prioritise spending
But his statement on the 150-page budget document disclosed that at least one key pledge - scrapping student debts - was being shelved.
Mr Swinney told MSPs: "I know there is insufficient parliamentary support for student debt servicing or for loans to grants, and we must therefore prioritise funding on policies that we can deliver and which will be supported by parliament."
He also disclosed that a target of 1.5% annual efficiency savings for thepublic sector is to be increased to 2%, in order to free up £1.6bn.
BUDGET PROCESS 14 November - Finance Secretary John Swinney's statement to HolyroodNovember/December - Holyrood subject committees scrutinise relevant portfolio areas19 December - Subject committees report back to finance committee16 January - Finance committee makes recommendations20 January at latest - Scottish Government lays budget bill before parliamentLate January - MSPs asked to endorse bill general principlesLate January/early February - Bill returns to finance committee for further scrutiny.Early February - Parliament decides, in a final vote, whether to pass the budget.BUDGET PROCESS 14 November - Finance Secretary John Swinney's statement to HolyroodNovember/December - Holyrood subject committees scrutinise relevant portfolio areas19 December - Subject committees report back to finance committee16 January - Finance committee makes recommendations20 January at latest - Scottish Government lays budget bill before parliamentLate January - MSPs asked to endorse bill general principlesLate January/early February - Bill returns to finance committee for further scrutiny.Early February - Parliament decides, in a final vote, whether to pass the budget.
"The achievement of this target will be a significant challenge and I make itclear that everyone in the public sector must play their part in delivering theclearer and simpler government that will make these savings," said Mr Swinney.
The minority Nationalist administration needs the support of rival parties to get the budget plans through Holyrood.
Labour, the Lib Dems and the Tories have already accused the SNP of breaking a manifesto pledge over delivering new police officers.Labour, the Lib Dems and the Tories have already accused the SNP of breaking a manifesto pledge over delivering new police officers.
Labour claimed the SNP had so far put off at least 60 decisions - and said it was now time to deliver.Labour claimed the SNP had so far put off at least 60 decisions - and said it was now time to deliver.
The Treasury announced in October that Scottish Government spending would go up by an average annual rate of 1.8% over the next three years, an increase of between £1.2bn to £3.7bn each year.The Treasury announced in October that Scottish Government spending would go up by an average annual rate of 1.8% over the next three years, an increase of between £1.2bn to £3.7bn each year.
However, while Scottish Secretary Des Browne said the outcome of the budget and spending review was "very good for Scotland".However, while Scottish Secretary Des Browne said the outcome of the budget and spending review was "very good for Scotland".