Scottish Government Budget Proposals

7th February 2012

Ahead of this week's stage three debate on the Scottish budget Finance Secretary John Swinney confirmed that he met with all opposition parties and would continue to listen to the views put forward by others to secure the best budget for Scotland.

With the debate due on Wednesday and at the end of a week in which the Finance Secretary set out the constraints on Scotland's economy as a result of UK economic policy and the alternatives that would be available with the powers of independence Finance Secretary John Swinney said:"We have put forward a budget that promotes economic recovery, protects household budgets and supports jobs and training opportunities for our young people.

"Our budget is focussed on investment in infrastructure to create and protect jobs through construction projects like the Glasgow Southern Hospitals Projects and the Forth Crossing. We are funding 25,000 apprenticeships this year for Scotland's young people. We have fulfilled our commitment to protect our NHS by passing on in full the Barnett consequentials from UK health spending and we are supporting families with a council tax freeze that will put money into our economy.

"At the start of this process I said if opposition parties came forward with ideas that match our priorities of supporting employment and economic growth that I would consider them. Last week I met with all the opposition parties to hear their ideas and I will continue to listen to sensible, costed proposals from opposition parties or the wider Scottish community to ensure we can deliver the best budget for Scotland.

"This week I was able to put additional funding for this year toward housing investment and employment in recognition of the challenges faced across Scotland and to make the most of our opportunities.

"I am aware that around housing, further education and transport there are particular demands for the next year and I will continue to discuss the potential opportunities in these areas with colleagues in coming days. However in the face of cuts of £1.3 billion to Scotland's budget and economically damaging cuts of 32 per cent to our capital investment we face some significant budgetary challenges.

"The Scottish Government is using every lever currently available to us to secure new investment and create and safeguard jobs against the backdrop of the UK Government's dangerous austerity package which is cutting spending too far and too fast.

The Scottish Budget will:
Deliver 25,000 modern apprenticeships and fund the 'Opportunities for All' programme to guarantee a training or learning opportunity for every 16-19 year-old

Pass on in full to the NHS in Scotland the Barnett consequentials from increases in UK health spending

Prioritise key infrastructure projects such as the new Forth Crossing and the New Glasgow Southern Hospitals Project and create jobs by using a range of measures to maximise investment, such as the £2.5 billion non profit distributing (NDP) pipeline of revenue-financed infrastructure projects and switching revenue spending to support capital investment

Give local authorities resources to continue to freeze the council tax and maintain police and teacher numbers

Invest in the low carbon economy to cut emissions and create new jobs
Implement a shift to preventative spending, encouraging joint working across the public sector to improve outcomes

Ensure workers whose pay is controlled by the Scottish Government receive the Scottish Living Wage of £7.20 an hour