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Swinney demands more UK funding | Swinney demands more UK funding |
(about 3 hours later) | |
Finance Secretary John Swinney has called for an end to what he says are attempts by the UK Treasury to "bully" the Scottish Government. | Finance Secretary John Swinney has called for an end to what he says are attempts by the UK Treasury to "bully" the Scottish Government. |
Mr Swinney met his UK counterpart, Yvette Cooper, in London and demanded £120m extra cash as well as the safeguarding of existing rebates. | |
He will take the issue to a rarely used committee which is designed to resolve devolution disputes. | |
The Treasury described the talks as "constructive". | The Treasury described the talks as "constructive". |
Mr Swinney told Mrs Cooper that the Treasury's stance over funding was "unacceptable" and that Scotland was being short-changed. | Mr Swinney told Mrs Cooper that the Treasury's stance over funding was "unacceptable" and that Scotland was being short-changed. |
The meeting between the two finance secretaries had been planned for some time. | The meeting between the two finance secretaries had been planned for some time. |
However, it was given extra urgency as tensions increased between London and Edinburgh over the level of funding to which Scotland is entitled. | However, it was given extra urgency as tensions increased between London and Edinburgh over the level of funding to which Scotland is entitled. |
'Financial black hole' | |
Mr Swinney believes the Barnett Formula, which is the process which determines Scotland's share of public spending, has been bypassed when it comes to issues such as funding for prisons. | |
However, Mrs Cooper refused to promise Scotland a proportion of the extra funding which has been given for prisons in England. | |
She said the money was allocated after a review identified "a significant gap between provision of and demand for prison places in England and Wales", which she said was not comparable to the situation in Scotland. | |
Mrs Cooper also reiterated the argument that the SNP's plans to scrap the council tax and replace it with a local income tax could result in a huge financial black hole in the Scottish Government's plans. | |
She had claimed in a letter to Mr Swinney that the 3p local income tax envisaged by the Scottish Government would raise £750m less than the amount currently raised by the council tax. | She had claimed in a letter to Mr Swinney that the 3p local income tax envisaged by the Scottish Government would raise £750m less than the amount currently raised by the council tax. |
Mrs Cooper ruled out any extra funding for prisons in Scotland | |
But Mr Swinney is adamant £400m of council tax benefit should continue to come to Scotland, even if the specific tax is abolished, because it is part of the existing Scottish block grant. | But Mr Swinney is adamant £400m of council tax benefit should continue to come to Scotland, even if the specific tax is abolished, because it is part of the existing Scottish block grant. |
He said: "The Scottish Government has been put in a position that the Treasury has refused to give us access to resources to which we are entitled. | |
"The financial arrangements make it clear that we should be given a share of the increase in prisons expenditure that has been put forward south of the border. | |
"The Treasury is not acting in an even-handed fashion towards Scotland - on prisons spending or council tax benefit - and the Scottish Government will want to take these issues to the joint ministerial committee to ensure that we can get fair and proper treatment for the taxpayers of Scotland." | |
However, the Scottish Conservatives claimed "grudge and gripe" politics have become the hallmark of relationships between ministers in Holyrood and Westminster. | |
David Mundell, shadow secretary of state for Scotland, said: "The SNP in Edinburgh and Labour at Westminster are embroiled in endless confrontation. | |
"Instead of this war of attrition and "can't do" posturing, Scotland needs constructive dialogue and a "can do" attitude." |