Budget update message from Mike Pringle MSP

8.10.00pm GMT Wed 4th Feb 2009

Last week, the Scottish Budget was thrown out by the Scottish Parliament.

However following constructive negotiations with the Scottish Government in the run up to the second budget vote an Economic Recovery Plan has been secured which has allowed me to support their new proposals.

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.

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.

This new economic package locks in long term benefits to Scotland and the economy and lines up the resources for permanent tax cuts for low and middle income earners.

One of the very substantial concessions secured in the new budget proposals was a vital new commitment from the Government for revenue funding support to build schools.

I have campaigned against the delays in bringing forward school building schemes and this is a welcome U-turn from the Government.

Furthermore the Government has made a commitment 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.

I am delighted that the Scottish Government has made the concessions necessary in their new budget proposals to foster cross party support and allow Scotland to progress.