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Scottish budget deal 'imminent' Deal done to pass Scottish budget
(about 3 hours later)
A deal to pass the Scottish budget on the second attempt is imminent, it has emerged. The Scottish Government has secured enough support to pass its budget for the coming year after striking a deal with the Liberal Democrats.
The minority Holyrood government has been trying to win support for the £33bn spending plans for 2009-10, which parliament rejected last week. In return for the party's backing, ministers have agreed to take forward a strategy for boosting the economy.
It is understood a deal has been reached with the Liberal Democrats. The minority government now hopes its £33bn spending plans can be passed on Wednesday, in the wake of their rejection by MSPs last week.
Their support - combined with the votes of the Conservatives, who supported the bill last week - would give the SNP the majority it needs to pass the budget. Tory backing will give the SNP enough votes to pass the budget.
It is also thought Labour will be offered less than their current demands on boosting apprenticeships.
Labour, the Liberal Democrats and the Greens combined to vote down the budget in parliament last week, saying it would fail to help the Scottish economy through the current tough times.
However, it is now understood that the Lib Dems will back the budget in return for two long-term economic aims.
Ministers have agreed to press the Calman Commission, which is reviewing devolution 10 years on, to agree to borrowing powers for Holyrood.
And there will be a cross-party review of Scottish Government spending.
Ministers are also working on plans to fast-track the Budget Bill through parliament.