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City in line for capital funding City in line for capital funding
(about 1 hour later)
Edinburgh looks set for a special funding deal in recognition of its status as Scotland's capital city.Edinburgh looks set for a special funding deal in recognition of its status as Scotland's capital city.
The finance secretary told MSPs that Edinburgh was increasingly a gateway for tourism and business in Scotland - with its benefits spreading far beyond.The finance secretary told MSPs that Edinburgh was increasingly a gateway for tourism and business in Scotland - with its benefits spreading far beyond.
John Swinney said he plans to look at whether to divert extra funding from the Scottish Government to the city.John Swinney said he plans to look at whether to divert extra funding from the Scottish Government to the city.
His comments came as he set out his overall funding package for local authorities.His comments came as he set out his overall funding package for local authorities.
He told MSPs at the Scottish Parliament: "I have received representations from a number of quarters that the funding allocated to the City of Edinburgh Council does not take sufficient account of the impact on Edinburgh of its role as Scotland's capital city.He told MSPs at the Scottish Parliament: "I have received representations from a number of quarters that the funding allocated to the City of Edinburgh Council does not take sufficient account of the impact on Edinburgh of its role as Scotland's capital city.
"While the distribution formula we use within the local government settlement does take account, for example, of visitor numbers, travel to work flows and population change, l believe there is a case to examine the funding implications arising from that wider role."While the distribution formula we use within the local government settlement does take account, for example, of visitor numbers, travel to work flows and population change, l believe there is a case to examine the funding implications arising from that wider role.
"As a first step, I have agreed that a study will be undertaken into this question jointly with the City of Edinburgh Council which will inform this process.""As a first step, I have agreed that a study will be undertaken into this question jointly with the City of Edinburgh Council which will inform this process."
This was a hard won prize - lobbying went on right up to the final minute Jenny DaweEdinburgh City Council leader
He said he hoped the research would be finished in time for his local government settlement for 2009-10.He said he hoped the research would be finished in time for his local government settlement for 2009-10.
Achieving capital funding status for Edinburgh was one of the top pledges in Independent MSP Margo MacDonald's Holyrood election manifesto. The leader of Edinburgh City Council, Jenny Dawe, said: "It is excellent news for Edinburgh and, at last, there is acknowledgement of the responsibilities the capital undertakes on behalf of Scotland.
"This was a hard-won prize.
"Lobbying went on right up to the final minute; we had face to face discussions with Mr Swinney on Wednesday morning to put our case for a final time and it's great for Edinburgh and for Scotland that the Scottish Government is recognising the case in this announcement."
She said the profile and prosperity of Scotland and the capital were intertwined.
"Each benefits from the success of the other, and the advantages of the council and government working together are clear," she said.
"It's on that basis that we will be working with the new Scottish Government, developing the unique potential of Scotland's capital."