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Budget plans to 'damage Scotland' Budget plans to 'damage Scotland'
(about 1 hour later)
The Scottish government has reacted angrily to the Chancellor's pre-Budget report, after it contained no move to accelerate cash for key projects. The Scottish government has attacked the Chancellor's pre-Budget report as "enormously damaging" to Scotland's recovery from recession.
SNP ministers had pressed Alistair Darling for a repeat of the scheme to bring forward about £350m for projects to boost the economy and create jobs. SNP ministers hit out at Alistair Darling's plans after they contained no move to accelerate cash for projects to boost jobs and the economy.
But Scottish Secretary Jim Murphy said the Holyrood budget had never been higher, and would now increase by £23m.
He also suggested SNP ministers should spend money "more wisely".
The Scottish government had pressed for a repeat of the scheme to bring forward about £350m for capital projects, a call backed by Scottish Labour leader Iain Gray.
The Scottish government's budget is at a record high Jim MurphySecretary of state for Scotland
The UK Government suggested they could be funded through PFI schemes, of which the SNP is highly critical.The UK Government suggested they could be funded through PFI schemes, of which the SNP is highly critical.
Holyrood ministers said Mr Darling's move was "enormously damaging". Holyrood ministers said Mr Darling's move was "enormously damaging" and would "jeopardise the process of recovery".
And they said it would "jeopardise the process of recovery".
But a spokesman for Scottish Labour leader Iain Gray - who also backed further capital acceleration - insisted there was still scope for such a move next year, adding: "Today wasn't D-day for this issue."
Labour also said The Scottish government budget was higher than ever and had increased again by £23m.
In his final pre-Budget report before a general election, Mr Darling said National Insurance would go up by a further 0.5p from 2011, while announcing a public sector pay freeze, bank bonus tax and a home boiler scrappage scheme.In his final pre-Budget report before a general election, Mr Darling said National Insurance would go up by a further 0.5p from 2011, while announcing a public sector pay freeze, bank bonus tax and a home boiler scrappage scheme.
Mr Murphy told the BBC's Politics Scotland programme the report was about setting out the road to economic recovery, while balancing the books.
"The Scottish government's budget is at a record high and because of the decisions taken today, it's going up again next year by a further £23m," he said.
The Scottish secretary said there was still an opportunity to address the acceleration of capital spending during next year's comprehensive spending review.
He went on: "This is about much more than the Scottish government budget.
"The budget's doubled and it continues to increase. It's never been bigger and the Scottish government currently has more money than it's ever had - it should probably spend it more wisely."