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Scottish budget: Swinney outlines spending plans Scottish budget: Swinney outlines spending plans
(35 minutes later)
Scotland's finance secretary has set out his spending plans for the next two years, insisting they would boost the economy.Scotland's finance secretary has set out his spending plans for the next two years, insisting they would boost the economy.
John Swinney said there would be more cash for housing, despite having his overall budget cut by UK ministers.John Swinney said there would be more cash for housing, despite having his overall budget cut by UK ministers.
He also said the SNP government would help mitigate against Westminster welfare reforms.He also said the SNP government would help mitigate against Westminster welfare reforms.
But the opposition accused him of putting Scotland "on pause" until next autumn's independence referendum.But the opposition accused him of putting Scotland "on pause" until next autumn's independence referendum.
Speaking in the Scottish Parliament, Mr Swinney said his draft budget, funded by a Treasury block grant, would also pay for a national performance centre for sport.Speaking in the Scottish Parliament, Mr Swinney said his draft budget, funded by a Treasury block grant, would also pay for a national performance centre for sport.
And he said the council tax freeze would continue, along with universal benefits like free prescriptions.And he said the council tax freeze would continue, along with universal benefits like free prescriptions.
Mr Swinney told MSPs the Scottish government's conventional capital budget was being reduced by 26.6%, as UK ministers seek to reduce the nation's spending deficit.Mr Swinney told MSPs the Scottish government's conventional capital budget was being reduced by 26.6%, as UK ministers seek to reduce the nation's spending deficit.
Speaking ahead of the independence referendum, on 18 September 2014, he said: "We have a highly skilled workforce, a long-standing reputation for innovation, a respected and recognisable brand, world-class universities and sectors and companies competing at the highest level across international markets.Speaking ahead of the independence referendum, on 18 September 2014, he said: "We have a highly skilled workforce, a long-standing reputation for innovation, a respected and recognisable brand, world-class universities and sectors and companies competing at the highest level across international markets.
"With the full decision-making powers of independence, I should, today, be able to present a budget that puts all of that economic strength to use in building a more prosperous and a more just Scotland."With the full decision-making powers of independence, I should, today, be able to present a budget that puts all of that economic strength to use in building a more prosperous and a more just Scotland.
"instead, as a result of Westminster's decisions, I must today present a budget constrained by significant cuts.""instead, as a result of Westminster's decisions, I must today present a budget constrained by significant cuts."
Mr Swinney said the budget would: Mr Swinney said the draft 2014-15 budget would
The finance secretary also said UK government welfare cuts would take an estimated £4.5bn out of the Scottish economy.The finance secretary also said UK government welfare cuts would take an estimated £4.5bn out of the Scottish economy.
He announced that £20m would be spent this year to support those struggling with UK-wide housing benefit changes, dubbed the "bedroom tax" by critics.He announced that £20m would be spent this year to support those struggling with UK-wide housing benefit changes, dubbed the "bedroom tax" by critics.
But Labour finance spokesman Iain Gray said the amount of money needed to offset the impact of the "bedroom tax" in Scotland was £50m.
Mr Gray also said a slogan used advance of the announcement - "budget for independence" - had been subsequently dropped by Scottish government spin doctors, adding: "It is a budget for independence - a don't-rock-the-referendum boat budget for a Scotland at a standstill on pause.
"It is the wrong priority."
He asked the finance secretary: "Will he take this budget for independence away and bring back a real budget for jobs and a budget which banishes the bedroom tax from Scotland this year, next year and the year after as well."
Conservative finance spokesman Gavin Brown said the budget would "penalise" businesses to the tune of almost £450m, under plans to increase the income from business rates from £2.4bn this year to more than £2.8bn in 2015-15.
He said: "Today's budget should have been about the economy - but as far as the economy is concerned, this is a budget that has both under-promised and under-delivered."
Scottish Liberal Democrat leader Willie Rennie said Mr Swinney's budget - which still needs the approval of parliament - was an inadequate response to Scotland's economic needs.