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Crunch talks over bridge funding £1bn 'lifeline' on bridge funding
(about 5 hours later)
The UK and Scottish governments are holding talks in London to try to break the deadlock over funding of the new £2bn Forth road bridge. A "£1bn lifeline" has been offered to help ensure the new Forth road bridge is built, the UK Government has said.
Scottish Finance Secretary John Swinney and the Chief Secretary to the Treasury, Yvette Cooper, are aiming to find a way forward. The comments came after the Holyrood and Westminster governments held talks in London to try to break the deadlock over funding the £2bn crossing.
Westminster rejected SNP plans to borrow money from future budgets and pay it back over 20 years. Scottish Secretary Jim Murphy, who hosted the talks, said real progress had been made on the issue.
The talks are being hosted by Scottish Secretary Jim Murphy. The Scottish Government described the talks as "constructive", but has not yet signed up to the proposals.
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 'Country before party'
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 planned to pay for it from the £30bn annual block grant from Westminster, but they also asked the Treasury to advance them 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. Westminster rejected SNP plans to borrow money from future budgets and pay it back over 20 years.
Speaking after the meeting between Scottish Finance Secretary John Swinney and the Chief Secretary to the Treasury, Yvette Cooper, Mr Murphy said up to £1bn had been identified that could be used potentially to help fund the crossing.
Mr Murphy said he hoped the SNP administration would put ''country before party'' and sign up to the proposals.
A spokesman for Mr Swinney said talks over the funding issue would continue, adding: "It was a useful and constructive meeting as part of an on-going dialogue."
The UK Government has 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.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.
"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."