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Opposition 'must back' funds call Salmond in opposition budget plea
(1 day later)
The Scottish Government has urged opposition parties to back its demand for more Westminster funds amid claims its budget could hit economic growth. Scotland's first minister has issued a plea to opposition parties to back his demand for more Westminster funds, to help ease the effects of the recession.
Finance Secretary John Swinney, who outlined his £35bn budget last week, wants the UK Government to allow extra spending to be brought forward. The Scottish government, which last week unveiled its budget plans for the coming year, has urged the Treasury to speed up capital spending allocation.
Mr Swinney has invited early talks with opposition parties to negotiate getting his budget through parliament. The SNP said Westminster could release the funds in the Chancellor's UK pre-Budget report this autumn.
But Labour has warned the plans displayed economic "incompetence". But Labour accused Scottish ministers of economic incompetence.
The finance secretary may be setting the ground rules for the coming talks, which are essential if the minority SNP administration wants to get its budget through the Scottish Parliament. The Scottish government has said its spending plans for the year ahead have been cut by £500m due to Westminster efficiency savings - but Labour insisted funding levels would actually increase.
A significant first step would be for other parties to endorse our call for a further acceleration of capital expenditure John SwinneyFinance Secretary 'Rash promises'
He said any proposal for changing the budget must be matched by a spending reduction elsewhere. Mr Salmond told BBC Scotland's Politics Show he was hopeful UK ministers would agree to his request.
"There is no room for manoeuvre," he said. "This is a budget fixed by Westminster in terms of total spending, and a budget that has been cut in real terms for the first time since devolution." "In an atmosphere where your budget's going down, where you have to have a balanced budget, quite clearly you can't get the increases you would like to see in different times - that's just reality," he said.
The Scottish Government will not countenance any proposals that would hit frontline services or risk economic recovery, said Mr Swinney. "Sooner, rather than later, that reality is going to dawn on the other political parties in the Scots parliament and hopefully, sooner rather than later, they'll get behind the government's campaign to accelerate capital spending to keep up the momentum of bringing the economy out of recession."
"A significant first step would be for other parties to endorse our call for a further acceleration of capital expenditure," he said. Scottish Labour leader Iain Gray said the SNP government's top priority of economic growth was now backfiring.
Mr Swinney claimed Westminster could release the funds in the Chancellor's UK pre-Budget report this autumn. "The SNP have no idea how to run a modern economy," he said, adding: "Their incompetence affects us all and is holding Scotland back."
'Going backwards' And, as budget talks with opposition parties likely to get underway soon, Scottish Conservative leader Annabel Goldie accused Mr Salmond of wanting to fulfil rash promises, rather than wise spending.
Labour leader Iain Gray said economic growth was supposed to be the Scottish government's number one priority, but it had gone backwards. Tavish Scott, the Scottish Liberal Democrat leader, warned against an agenda of "creeping centralisation" in the budget, saying governments should not be trying to control people's lives.
He said: "The SNP have no idea how to run a modern economy. Their incompetence affects us all and is holding Scotland back."
Labour also argued that the budget for community justice services was being cut, threatening SNP plans for scrapping six-month sentences, an accusation the government said was "completely untrue".
Meanwhile, Tory leader Annabel Goldie indicated tax was a key issue for them, also signalling friction with Labour and the Liberal Democrats.
"We want another council tax freeze. Labour and the Lib Dems want local taxes to rise," she said.
But Ms Goldie went on to attack First Minister Alex Salmond, saying he would rather continue with rash promises, than wise spending.
The Liberal Democrats warned against an agenda of "creeping centralisation" in the budget.
Leader Tavish Scott said: "We will show in everything we do that our country will be stronger when governments stop trying to centralise and control every part of people's lives."