Friday, 18 September 2009

Draft Budget - Scottish Parliament



Plenty commentary in the dead tree press this morning about yesterday's draft budget which was delivered in a strong and confident manner by John Swinney, the Finance Secretary.

All the reports recognise that he had to apply the brakes to public spending and this draft budget was a one-year standstill package which offered a taste of spending hardships to come as the full financial impact of the recession and the UK's massive deficit become clear.

The most controversial project where the axe fell was the Glasgow airport rail link which will save £170m although social housing took a hit with £170m coming off the building programme. Scottish Enterprise is to lose £77m; the £20m set aside for the introduction of LIT is to be scrapped; there will be a £14m (3%) cut in the government's core administration budget; a ££10m cut in the teacher training budget and the government's advertising budget will be halved - saving £5m.

However key areas of public spending will be protected and Mr Swinney told the Parliament councils will continue to be funded to enable them to continue the freeze on council tax for a third successive year.

Scottish health boards will get a 2.7% increase in cash to maintain frontline services and prescription charges are still on track for abolition in 2011.

More resources have been allocated to continue preparing for a new Forth bridge and the government's flagship £1.25bn school building programme is unaffected.

Mr Swinney had a budget of £29.72bn to distribute - £500m less than he had expected to receive from the UK government.

Explaining his reasons fro scrapping the Glasgow airport rail link he said:

“This is a project that will include capital costs for several years, and the government has been concerned at the rise in costs associated with the project due to significantly higher estimates of the cost of the need to relocate existing infrastructure compared with the figures shared with parliament at the time of the legislation.”

Glasgow City Council leader Steven Purcell described the decision as a "dagger in the heart" of the city.

The Scottish Government has asked the UK Government to once again bring forward future capital spending to help weather the recession.

A difficult balancing act for the SNP government but this is only the beginning as now the draft begins its progress through Parliament, coming before MSPs in January with a final vote likely in February.

8 comments:

Faux Cu said...

"A dagger in the heart of Glasgow."

When all is lost try some bastardised Shakespeare to try to convey a soundbite completely ludicrous in its interpretation of the reality.

A dagger in the heart of Scotland would be a better analogy of Gordon Brown's performance as Chancellor and PM.

Anyone know what medications Gorgon is on today; uppers, downers, flying Nokias or tied restraints?

subrosa said...

Aye all rather dramatic Faux Cu, rather like Gray at FMQs yesterday, although his performance made me roar with laughter for some reason.

I think it's Ritalin today FC, just to see if he can think about the cuts for 5 minutes.

RantinRab said...

I don't understand all the fuss about the rail link. After all, there is a perfectly good airport with it's own railway station 40 minutes down the road at Prestwick.

subrosa said...

Yes Rab and I don't understand it either. The road is good to Prestwick and the parking is better than Glasgow.

Glasgow airport is a depressing place but Prestwick has been cheered up a bit.

CrazyDaisy said...

Purcell,

Has some neck, he's found plenty of money for giving his Glesga Cooncil staff a minimum wage of around £7 an hr; he's guilty of closing schools that Labour have failed to maintain for decades and blame the Eth.N.P.

I take the bus to most airports around the UK and when I'm abroad, what's the beef? Oh I know! Jobs fur ra boyz that Purcell has promised nae doot!

Him and Murphy need watchin.

Crazy D

subrosa said...

They need watching right enough CD but Purcell has his own agenda in politics I think.

He was on the radio Scotland panel with Brian Taylor today. He tries to be on both sides of the fence which is worrying.

Mind you ... ;)

Anonymous said...

Glasgow is like a building site. They really can't expect to have all the money.

Purcell is of course, only standing up for his area, as you would expect him to. In the process he is irritating the hell out of some of his own side.

subrosa said...

Purcell's got his own agenda I think tris and he's made a really comfy pad for himself in Glasgow Council.

We'll hear a lot more of him in the future I'm sure.

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