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Crunch talks over bridge funding | Crunch talks over bridge funding |
(8 minutes 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 | 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''. |
The Scottish Government has argued the new bridge is a "generational" project, and must be allowed to go ahead without delaying other capital spending proposals. | |
Speaking ahead of the meeting, Mr Murphy said: "We are very keen to engage constructively regarding the building of a new Forth Road Bridge. | 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." | "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." | The Scottish secretary added: "If John Swinney is willing and able to be co-operative, there is a deal to be done." |