Budget Bill Debate - £1.3 Billion Cut

27th January 2011

Ahead of the Budget Bill debate in the Scottish Parliament today, Finance Secretary John Swinney said:"I look forward to Stage 1 of the Budget Bill and debating a budget that will protect jobs and frontline services, promote economic recovery and support the move to a low carbon economy. Scotland's budget next year has been slashed by £1.3 billion as a result of Westminster cuts, planned by the previous UK Government and extended by the current UK coalition. Our Budget seeks to address that financial challenge and faces up to the tough choices.

"We will protect households from rising VAT and inflation and ask the very largest retailers - those who can most afford it - to pay more in business rates. The large retail business supplement will raise 30 million pounds and affects only 225 out of 215,000 business properties in Scotland, less than 0.1 per cent of all businesses in Scotland. It is supported by the largest business organisation in Scotland, the Federation of Small Business.

"I am engaged in discussions with other parties regarding their budget priorities. We are willing to consider alternative proposals, but where other parties propose to increase spending they must they also identify where the money will come from. Removing the large retail business supplement would simply constrain my flexibility to meet other parties' aspirations and present a balanced budget to Parliament."