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Forth bridge payment plan blocked | Forth bridge payment plan blocked |
(about 1 hour later) | |
The new Forth bridge will not be paid for with a cash advance from the UK Treasury. | The new Forth bridge will not be paid for with a cash advance from the UK Treasury. |
The Chancellor's department has rejected a request from the Scottish government to spread the cost of the £2bn bridge over 20 years. | |
Finance Secretary John Swinney had asked for special permission from the UK government to pay for the new bridge with cash from future capital budgets. | |
But the chief secretary to the treasury said this was not a "credible option". | But the chief secretary to the treasury said this was not a "credible option". |
Yvette Cooper has suggested alternatives such as building up a big underspend or using a public private partnership (PPP). | Yvette Cooper has suggested alternatives such as building up a big underspend or using a public private partnership (PPP). |
The Scottish government said her suggestions were "ridiculous". | |
The chancellor explained the reasoning for the refusal to BBC Radio Scotland's The Business programme. I am sorry that for ideological reasons they have ruled out using public private partnerships Alastair Darling | |
He said: "Firstly there is no doubt that we need a second Forth crossing. | |
"We are happy to work with the Scottish government. | |
"If you are contemplating large projects like this you do need to make choices. | |
"The Scottish government's no different from any other large organisations. | |
"I am sorry that for ideological reasons they have ruled out using public private partnerships. | |
"We will work with the Scottish government, but their particular scheme where they were asking to borrow money from budgets which are yet to be allocated over an extremely long period - that's something that we simply don't do. | |
"I think they ought to have been aware of it and they could have found out if they had asked earlier." | |
The Scottish government now plans to pay for the bridge from existing capital budgets, which means other major public works will have to wait in a queue for funding. |