Lib Dems Secure Economic Recovery Plan after budget talks

5.39.06pm GMT Fri 6th Feb 2009

Last week, the Scottish Budget was thrown out by the Scottish Parliament. Following constructive negotiations with the Scottish Government in the run up to the second vote, Liberal Democrats secured an Economic Recovery Plan, which has allowed the party to vote for the Budget.

The agreement includes engagement by the Scottish Government with the Calman Commission to secure borrowing powers for Scotland; a new revenue funding stream to get the school building programme moving again; a new programme of recession-busting savings that could be used to fund future tax cuts; agreement to seek a Finance Sector Jobs Task Force to protect the financial services industry; and for the Council of Economic Advisors to make recommendations on the Budget to help it meet the challenge of the recession.

Commenting, Liberal Democrat Mike Pringle, MSP for Edinburgh South said: "We have secured an economic recovery plan with serious measures for serious times.

"Last week's GDP figures showed the desperate state of the economy. We know from these figures that Scotland is likely now to be in both a deeper and longer recession than the rest of the UK.

"Our economic package locks in long term benefits to Scotland and the economy and they line up the resources for permanent tax cuts for low and middle income earners.

"One of the very substantial concessions we secured from this process was a vital new commitment for revenue funding support from the Government for building schools.

"We have campaigned against the delays in bringing forward school schemes and this is a welcome U-turn from the SNP."

Margaret Smith, MSP for Edinburgh West, said "I am pleased with the budget settlement. We have won a commitment from the Scottish Government to work with other parties to secure borrowing powers for the Scottish Parliament. Borrowing powers would solve the funding crisis over the new Forth crossing, which currently threatens planned transport improvements across the country. Our involvement in this Budget has opened up ways to make that happen."

Fred Mackintosh, Liberal Democrat Westminster Spokesman for Edinburgh South, said:

"The Tories have made much of their Budget negotiations, particularly the town centre regeneration fund. The £60 million to pay for this fund comes from accelerated capital spending from the UK Treasury. This money needs to be paid back next year. The Tories need to explain what they will cut next year to pay for this. People in Edinburgh South need to know what local projects and schemes that depend on Government money are now at risk next year."

Related Link:

Detailed news about the budget in the Scottish Liberal Democrat website.