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Scottish budget announcement due Ministers scrap airport rail plan
(about 23 hours later)
The Scottish Government is to unveil its budget plans for the coming year, amid concerns over spending cuts. The Scottish Government has scrapped the £120m Glasgow Airport Rail Link, amid public spending cut concerns.
Finance Secretary John Swinney wants to protect public services and boost the economy, while extending the council tax freeze into a third year. Finance Secretary John Swinney also announced funding reductions in housing and education, as he unveiled his £35bn budget plans for the year ahead.
But Scottish ministers said their spending would be cut by £500m, due to the UK government's efficiency drive. Holyrood ministers said they had £500m less to spend because of Westminster efficiency cuts, but insisted vital public services would be protected.
Rival parties said the SNP must protect jobs, rather than spending money on the independence referendum. Labour said the level of cash in the pot would actually go up by £600m.
Mr Swinney will announce details of his £35bn budget, which needs opposition backing to be passed, in parliament. Mr Swinney told the Scottish Parliament the rail link had to go to cope with a £129m cut in the NHS budget, as a result of UK government reductions in heath department capital spending.
Scottish Labour will judge the SNP's budget on the number of jobs it supports Andy KerrLabour finance spokesman This is a budget that does not address key needs Jeremy PurvisLiberal Democrat finance spokesman
It will come days after Gordon Brown admitted for the first time that spending cuts were on the cards. He insisted vital public services would be protected and economic growth boosted, but warned MSPs: "In light of the difficult financial climate that we face, as a responsible government we have therefore had to face difficult choices about where to reduce planned spending next year."
The Scottish finance secretary has warned of difficult times ahead, but has committed to safeguarding "frontline" services, which include areas such as education and the health service. The Scottish Government's published document outlined plans for a £253m cut in housing and regeneration, with reductions of £2.7m in schools funding and £76m in enterprise.
Labour finance spokesman Andy Kerr insisted the level of cash in the pot due to be allocated to Scotland by the Treasury would actually rise by about £600m. There will also be an overall £14m reduction in Scottish Government administration costs. Health spending will rise by £263m and higher education by £22m, while police funding will see a £6m increase.
In the wake of a further rise in Scottish unemployment, Mr Kerr called for a "budget on jobs", adding: "Scottish Labour will judge the SNP's budget on the number of jobs it supports or creates, how it allows us to come through the recession in a stronger position and how it protects front line services." And council tax is also set to be frozen for a third year.
'Crystal clear' 'Economic impact'
The Conservatives' Derek Brownlee said the SNP had to spend taxpayers' cash wisely. Mr Swinney said: "The UK government's cuts have also put pressure on our resource budgets.
"We will do whatever we can to protect key public services, like the NHS, from the worst effects of Labour's cuts," he said, adding: "Irresponsible SNP policies like free prescriptions for those who can afford them have made this all the more difficult." "In dealing with this, I have been determined to act in a way that protects jobs, supports families and communities and keeps our investment in skills, innovation and our industries of the future."
Liberal Democrat MSP Jeremy Purvis said ministers needed to reverse growth in civil service jobs and cut big bonuses to quango bosses, while saying millions of pounds could be saved by squeezing more efficiencies from utility Scottish Water. Labour finance spokesman Andy Kerr said the only cuts had come from Mr Swinney himself, with the minister's "prints on the knife".
He said: "This budget needs to be crystal clear that it will switch money from the SNP's extra civil servants and quango bosses towards new chances for young people to build a long-term recovery from recession." Mr Kerr went on: "Like the latter-day Sweeney Todd, the demon barber of Fleet Street, he's been caught in the act standing over the body.
MSPs will be asked to give final approval to the budget in the spring, following several stages of parliamentary scrutiny. "What is that body? It's the Glasgow Airport Rail Link and the jobs and the economic impact that we would've had."
READ THE BUDGET DOCUMENT Draft Scottish Budget - 2010-11 [28KB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here Who's up and who's down in the budget proposals
The Conservatives' Derek Brownlee said the rail link decision was a casualty of "Labour's cuts", adding: "It won't be the last, given the state the public finances are in."
But Liberal Democrat finance spokesman Jeremy Purvis directed his criticism at the Scottish Government, telling MSPs: "This is unfortunately a budget that does not address the key needs, nor does it make some of the changes that we will have to see in the coming year."
The Glasgow Airport Rail Link, which was due to open in time for the 2014 Commonwealth Games, was overwhelmingly backed by MSPs as a "nationally significant project".
Mr Swinney said he was also concerned at the project's rising costs - but promised other measures to improve public transport in the west of Scotland.
Glasgow City Council leader Steven Purcell said ministers had a "clear anti-Glasgow agenda".
He also said there was a "compelling case" for Chancellor Alistair Darling to continue allowing future spending to be brought forward.
Parliament will be asked to approve the spending plans next spring.