Ministers accused of budget cuts

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Councils are cutting vital services because of the settlement handed to them by ministers, Scottish Labour leader Wendy Alexander has claimed.

She said curry-loving First Minister Alex Salmond had inflicted a "takeaway" budget on local authorities.

However, Mr Salmond said during question time at Holyrood that the councils' funding share had increased.

Scottish Liberal Democrat leader Nicol Stephen claimed Scottish universities were facing a record cash crisis.

And the Conservatives accused the government of being "stuck in a U-bend" over its opposition to mutualising the country's water authority.

Is the government all takeaway but no delivery? Wendy AlexanderScottish Labour leader

Speaking in the parliament chamber, Ms Alexander cited the case of Aberdeen mental illness care organisation, the Richmond Fellowship, which was being "robbed" of £360,000 because of local council cuts.

Local government's share of the total Scottish budget, she claimed, would be smaller under the SNP than the previous administration and would see schools, home care and leisure facilities axed.

Ms Alexander told MSPs: "We learnt this week of the first minister's fondness for using his official car to pick up his curry.

"Is the first minister becoming 'Mr Takeaway' - taking away from the disabled, the homeless, the youngest, the oldest, the poorest. Is his government all takeaway but no delivery?"

Ms Salmond said Aberdeen Council and other local authorities faced funding challenges.

'Funding increase'

He added: "Like every single council across Scotland, their increase over the next three years are well above inflation, well above the Scottish budget increases - and for the first time in a generation the share of local government expenditure is rising as a share of Scottish expenditure."

Mr Stephen expressed his concerns after Dundee University said it had to save more than £3m over the next two years.

"Dundee University has confirmed significant job losses, more than 100 staff will be affected," he told MSPs.

The Lib Dem leader asked: "Is this an efficiency saving or a cut?

"And will the lecturers and students who will suffer as a result be able to tell the difference?"

Ministers decided against mutualisation for Scottish Water

Mr Salmond praised the university for facing up to budgetary constraints and its drive for excellence in further education, while pointing out its review had begun under the previous Scottish administration.

He added: "In the spending review period, over the period of that review, expenditure on universities and higher education will increase in real terms."

Meanwhile, Scottish Conservative leader Annabel Goldie hit out at the government's decision to review the role of Scottish Water, but not to go down the road of mutualisation.

She claimed keeping the utility in the public sector cost the taxpayer more than £180m a year, adding: "There is a choice between a perpetual burden of subsidy on the tax payer or a progressive utility fit for purpose for this century, returning money to its customers."

Mr Salmond said he had "difficulties and doubts" about mutualisation and claimed the savings would not be realised immediately.

He went on: "The second substantial doubt we have about the Tory attitude to mutualisation is that many, many people in Scotland see it as a Trojan horse towards privatisation."