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Crunch talks over bridge funding Crunch talks over bridge funding
(about 3 hours later)
The UK and Scottish governments are holding talks in London to try and break the deadlock over funding of the new £2bn Forth road bridge.The UK and Scottish governments are holding talks in London to try and break the deadlock over funding of the new £2bn Forth road bridge.
Scottish Finance Secretary John Swinney and the Chief Secretary to the Treasury, Yvette Cooper, are aiming to find a way forward.Scottish Finance Secretary John Swinney and the Chief Secretary to the Treasury, Yvette Cooper, are aiming to find a way forward.
Westminster rejected SNP plans to borrow money from future budgets and pay it back over 20 years.Westminster rejected SNP plans to borrow money from future budgets and pay it back over 20 years.
The talks are being hosted by Scottish Secretary Jim Murphy.The talks are being hosted by Scottish Secretary Jim Murphy.
Plans for the new bridge were announced by the Scottish Government last year.Plans for the new bridge were announced by the Scottish Government last year.
If John Swinney is willing and able to be co-operative, there is a deal to be done Jim MurphyScottish secretary
Holyrood ministers said they would pay for it from the £30bn annual block grant from Westminster, but it also asked the Treasury to advance it cash to spread the cost of the bridge.Holyrood ministers said they would pay for it from the £30bn annual block grant from Westminster, but it also asked the Treasury to advance it cash to spread the cost of the bridge.
The UK Government said it was impossible to advance cash from a budget which did not yet exist, but has offered a potential compromise, allowing Scots ministers to keep savings made over the next three years to build up a cash reserve to help pay for the bridge.The UK Government said it was impossible to advance cash from a budget which did not yet exist, but has offered a potential compromise, allowing Scots ministers to keep savings made over the next three years to build up a cash reserve to help pay for the bridge.
But sources close to Mr Swinney said this was ''unrealistic''.But sources close to Mr Swinney said this was ''unrealistic''.
Speaking ahead of the meeting, Mr Murphy said: "We are very keen to engage constructively regarding the building of a new Forth Road Bridge.
"At this afternoon's meeting the UK Government will offer some real and new financial flexibility to the Scottish Government."
The Scottish secretary added: "If John Swinney is willing and able to be co-operative, there is a deal to be done."