The Scottish Government has passed its budget, despite Labour voting against it.
The final vote saw the Conservatives, Greens and Margo MacDonald voting with the government, while the Liberal Democrats abstained.
During the Stage 3 debate in Parliament this afternoon Finance Secretary John Swinney announced more funding for training and educational places, as well as support for measures to tackle climate change and fuel poverty.
He also announced that the government will publish details online of all items of expenditure above £25,000 on a monthly basis, and pledged to establish an Independent Budget Review to consider the implications of forecasts of reductions in public spending in Scotland.
Swinney said:
"I am presenting to Parliament a budget that meets the needs of the people of
"A budget that prioritises the areas of expenditure that matter most, in the face of cuts this year, and prepares us for the challenges that lie ahead.
"It is also a Budget that is responsive - both to pressures that have crystallised since we published our draft proposals in September, and to the suggestions put to me by other parties, particularly on economic recovery.
"I have used every flexibility available to me within the tight overall financial envelope in an effort to build parliamentary support for this Budget.
"With additional funding for training and educational places, support for measures to tackle climate change and fuel poverty, this Government has listened to the views of Parliament. We have faced the tough decisions and have set out proposals to help Scotland through the difficult times within the fixed Budget we have.
"This is a Budget that will support economic recovery and protect frontline services - a Budget for all of
However, Labour’s amendment to reinstate GARL was voted down by 66 votes to 59.
Labour MSP Margaret Curran accused the SNP and Conservatives of “stabbing Glasgow in the back” by not supporting the amendment.
“The Deputy First Minister Nicola Sturgeon is first among the guilty men and women. It is clear that she is the SNP Government’s representative in Glasgow and not Glasgow’s representative in the SNP Government,” she said.
“This administration has an additional £58.5 million to spend this year because of a rise in Scotland’s share of UK spending and more than double the budget that was available to Donald Dewar.
“It is absolutely clear that their decision to cancel the rail link, which will cost the West of Scotland 1,300 jobs, was unnecessary and unjustified. Every single MSP who voted for this budget should hang their heads in shame."
Her colleague Andy Kerr MSP also pledged that a commitment to reinstate GARL will be included in Labour’s manifesto for the 2011 Scottish election.
Shadow Finance Secretary Andy Kerr said:
"The facts are that the Scottish Government’s budget for 2010-2011 is rising by almost £1 billion, but the SNP have done a tawdry deal with the Tories to sell Scotland down the river.
“…It is frankly appalling that Alex Salmond and John Swinney can find money for a referendum but not for valuable infrastructure projects. They have put their own political obsession ahead of Scotland’s economic recovery.”
Reaction
Scottish Conservative leader Annabel Goldie said her party’s proposals for a “transparency revolution” in public spending could save the public purse millions of pounds.
She also welcomed plans to extend small business bonus scheme thresholds.
“Conservatives have long argued that a uniform business rate is essential to keep Scottish business competitive within the UK. I am delighted that this budget protects that position because the private sector is the engine of economic recovery,” she said.
“In previous budgets the Conservatives have cut or abolished business rates for tens of thousands of small local businesses. The FSB estimates that this has saved 1 in 8 of them from going bust. So I am delighted that in this budget we have maintained and substantially enhanced that support.”
Commenting on the uplift of rate relief thresholds Andy Willox, the Federation of Small Businesses’ Scottish Policy Convenor said: “Business rate relief thresholds need to be understood in the context of average rateable values – due to be released over the next week or so.
“However, if, as I suspect, this rise reflects any broad rise in rateable values, it is absolutely the right move. The Small Business Bonus scheme has already made a dramatic difference for many firms during the last 18 months and today’s announcement, dependent on the new rates thresholds, keeps up the move towards a more equitable business rates regime – which is good for jobs, local economies and communities.
CBI Scotland director Iain McMillan also welcomed the announcement.
“It is crucial that government keeps a tight lid on those costs under its control which affect business. Uplifting the thresholds for small firms rates relief in the context of the looming commercial property revaluation is welcome recognition of this and something we urged Ministers to act on.”
However, he criticised the government decision not to reinstate GARL.
“Given the extent of the fiscal stringency required over the next few years and the pressing need to sustain investment in and support for economic growth, we remain convinced that the spending plans for the coming year are inadequate. A far bolder approach was required to making savings and to protect, rather than cut, important GDP-enhancing investments in infrastructure. As such the decision not to reinstate the key GARL transport project, and all the economic and environmental benefits that would bring, is particularly disappointing and short-sighted.”
GARL has never been a “top priority” for the Greens, says Green co-convener Patrick Harvie MSP, adding that Crossrail would have had “far wider benefits for rail commuters without the risk of fuelling aviation growth.” However, he said that if Labour is serious about finding the funding for it an obvious solution would be scrapping or postponing the new Forth Road Bridge.
Harvie also welcomed government concessions on a boiler scrappage scheme and a new home insulation programme.
"Householders across Scotland have faced another cold winter and rising energy costs. Too many people live in draughty and expensive accommodation, and too many rely on inefficient and out-dated central heating schemes. Last year we argued Ministers needed to strip out the bureaucracy and make loft and cavity insulation free for everyone. This year we urged them to go beyond that and adopt a boiler scrappage scheme: the same approach as the car scrappage scheme, but designed to help people to bring down their energy bills and reduce their emissions,” said Patrick Harvie MSP.
"We're very pleased to have persuaded the Scottish Government to do the right thing on all these issues, even if the pace of work will still be too slow. Alongside the £10m investment in wave and tidal power we secured two weeks ago, we are satisfied that this Budget is now worth supporting, despite our remaining reservations over transport and energy issues. Ministers have serious questions to answer on economic and environmental issues, and as future Budgets get tighter these decisions will not get any easier. The priority will be to find imaginative ways to build a successful low carbon economy, identifying measures that promote jobs while also cutting bills and reducing emissions. Today we have made a small but significant step in that direction."
The increased investment will mean Scotland’s homes will be “warmer and healthier”, WWF Scotland added. However, it said the figures put forward fall short of what is required to help Scotland meet its target of a 42 per cent cut in greenhouse gas emissions by 2020 and eradicating fuel poverty by 2016.
Elizabeth Leighton, Senior Policy Officer said:
"Today's budget is a big step in the right direction, . The additional money towards a free insulation scheme is to be welcomed as this approach has been shown to be cost-effective in addressing both carbon emissions and fuel poverty.
"However we believe around £270 million is required to help the government meet two of its key targets - reducing carbon emissions by 42 per cent by 2020 and to eradicate fuel poverty by 2016. More cash for the Home Insulation Scheme and the Energy Assistance Package would help meet these goals as well as generate a market for green jobs - but what is on the table falls well short of this."
Meanwhile the Scottish Trades Union Congress accused the government of “ducking the difficult decisions”.
General Secretary Grahame Smith said: “The Scottish Government promised to protect frontline services, yet the Scottish Budget will be agreed today as councils throughout Scotland are planning to close facilities, reduce services and cut much needed public sector jobs.
“Despite their claims to the contrary, Government at all levels are ducking the difficult decisions. We need the UK Government to commit to additional fiscal stimulus and to progressive taxation in the longer term, for the Scottish Government to abandon its Council Tax Freeze and the Small Business Bonus Scheme and for Scotland’s council leaders to stand up for jobs and services.”
Similarly, UNISON, Scotland’s largest public service union, said the budget fails to meet the needs of the Scottish people and was likely to threaten economic recovery.
Matt Smith, UNISON’s Scottish Secretary said:
“The budget will not cover the increased demand that Scottish people now make on their services, nor will it cover the increased costs. That means cuts in services, cuts in jobs and cuts in the amount that public authorities pump into the economy. It looks like a triple whammy for the people of Scotland.”
“This crisis was not caused by the public sector and we know that public services work, yet some politicians and media commentators seem to think it axiomatic that our services and those who deliver them should pay for the irresponsibility of our private sector banks. As part of our Public Works campaign, UNISON has produced an alternative budget that shows how the cost of bailing out the country’s financial sector can be met without cutting the vital services people depend on”
While Shelter Scotland Director Graeme Brown called it a missed opportunity for homes and jobs.
“The smoke and mirrors will not blind us to the fact that there is nothing new in the Scottish Budget for homes, and nothing new for construction jobs,” he said.”
“The £31 million announced yesterday by the Scottish Government is not new money. It is part of money already allocated to the housing programme and flows from UK Government Barnett Consequentials announced last June.
“Housing was well placed to help Scotland’s economy accelerate out of a very fragile recovery, help create jobs, move people out of expensive temporary accommodation and slash massive waiting lists.
“Today Alex Salmond and John Swinney missed that opportunity and failed those in housing need and in job queues.”
