UK NEWS
PRICE OF ONE STAMP COULD END ROW OVER £33BN BUDGET
By Paul Gilbride
Alex Salmond was last night poised to save his £33billion Budget for the price of a “second-class stamp”.
The First Minister and his team yesterday began fraught talks with opposition leaders after Labour, the Liberal Democrats and the Greens combined to defeat his minority administration.
But last night, after reaching cross-party agreement to fast-track a new budget in the hope of avoiding a snap election, there were signs of breakthrough with the LibDems.
Leader Tavish Scott wants Mr Salmond to demand extra cash-raising powers from the Unionist-backed Calman Commission, set up to examine the future of devolution.
Earlier, Mr Scott opened the door to a fresh round of horsetrading after signalling he was willing to drop his party’s demand for a 2p income tax cut. His £800million-a-year call was rejected by Finance Secretary John Swinney three weeks before the shock defeat on the grounds it was too costly. But following talks yesterday it appears Mr Scott is willing to guarantee his 16 MSPs’ support on the strength of a simple letter.
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I am glad that Labour and the Lib Dems seem to have come to their senses. “They have realised that they made a mistake, and that they should not play politics with the economy, especially during Labour’s recession
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Scottish Tory leader Annabel Goldie
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The SNP has so far ruled out any involvement with the Calman Commission because it will not examine independence. And Mr Scott believes securing Mr Salmond’s input aking for the new borrowing powers will be a major political coup.
Last night, a senior aide to Mr Salmond, asked if he could agree to the Lib Dem “demand”, confirmed it had been discussed and added: “Yes, we would consider that.” But Tory finance spokesman Derek Brownlee poured scorn on the LibDem position, pointing out the Nationalists are in favour of securing any additional powers.
He said: “Everbody knows the SNP’s position on borrowing powers. They do not need a letter to prove it. They asked for almost a billion pounds and now they will settle for a second-class stamp.”
Mr Salmond has threatened to resign if the budget fails a second time, which would lead to a snap election if the Parliament could not establish a new administration.
Earlier, the First Minister angrily clashed with Labour leader Iain Gray over the debacle during First Minister’s Questions. Mr Gray accused Alex Salmond of “reckless brinkmanship and arrogance” over the budget rejection.
As ministers began a fresh round of talks with rivals to reach a compromise, the main parties agreed to re-run the budget by February 11. In an apparent sign Mr Salmond has lost patience with the two Green MSPs, who voted down the budget in a row over a free home insulation scheme, aides met with their LibDem counterparts.
Failure to pass the budget means public spending is pegged at the previous year’s level. Councils and health boards were due to find out next week how money had been allocated and the crisis has put at risk a promised council tax freeze.
Last night, Labour also made concessions, dropping its demands for a three year programme to boost apprenticeships by 7,800 a year. Instead Mr Gray appears willing to settle for a two-year scheme which would cost £45million to £90million.
Nationalist aides have stressed this and other issues brought forward by opposition parties would be “considered”.
However its thought unlikely that any peace will break out between the two parties. Mr Salmond’s official spokesman was last night upbeat after talks with the Lib Dems said: “There has been a change in atmosphere. “We are extremely confident we will get our Budget passed when it comes before Parliament again for a final vote in two weeks time.”
The LibDems were last night unwilling to speculate on the issuses that came up during discussions. But Mr Scott said: “I made a number of proposals today to the First Minister on an economic recovery plan. He agreed to look at these proposals seriously and discussions will continue.”
Scottish Tory leader Annabel Goldie said: “I am glad that Labour and the Lib Dems seem to have come to their senses. “They have realised that they made a mistake, and that they should not play politics with the economy, especially during Labour’s recession.”
Mr Salmond will today meet Patrick Harvie, co-leader of the Scottish Greens, whose two MSPs voted against the budget Bill. Mr Harvie, whose party had wanted a £100million-a-year insulation programme over 10 years, said that he would seek a better offer.
