Labour spells out budget demands

Published on Saturday 21 November 2009 20:00

LABOUR'S Scottish leader Iain Gray has laid out the conditions under which his party will support the SNP government's forthcoming spending budget.

Writing in Scotland on Sunday today, Gray suggests the government would have to, at the least, reinstate the Glasgow Airport Rail Link (Garl) project it cancelled earlier this year as well as reverse cuts in the housing budget.

Finance Secretary John Swinney slashed Garl from his 30 billion draft budget for 2010-11 in September in an attempt to save 100 million. He also announced that 173m would be cut from the housing programme.

Gray says that despite cutting money for vital infrastructure projects, Swinney has managed to find 12m to pay for preparatory work for the SNP's planned referendum on independence.

The SNP government is keen to avoid the controversy surrounding the last two years' budget negotiations, during which First Minister Alex Salmond threatened to resign unless the budget was passed by the Scottish Parliament.

Gray says he expects "the ritualistic threat" from Salmond "any day now" unless opposition parties fall into line and vote next year's budget through.

He writes: "John Swinney's problem is that he is not really finance minister for a Scottish Government, but rather treasurer of a campaign for separation. Why else would he stand ready to find 12m for a referendum but not the funds for vital infrastructure?

"That referendum bill is going the same way as local income tax – nowhere. Unless John Swinney starts reshaping his budget to support jobs and the economy then it is going nowhere too. Reinstating Garl and the housing budget cuts would be a start, though only a start.

No doubt any day now we will hear the First Minister's ritualistic resignation threats if he does not get his budget. We have heard it all before. If the budget is not right for Scotland then we will vote it down."

The cancellation of Garl is regarded as being one of the major factors in Labour holding on to the Glasgow North-East seat vacated by former House of Commons Speaker Michael Martin.

Labour candidate Willie Bain won by a comfortable majority of more than 8,000 votes, leaving the SNP trailing well behind in second place.

Gray says getting Garl back on track will be one of his priorities during budget negotiations. The parliamentary vote on the government's spending plans is expected early next year.

"As we approached this year's budget John Swinney made the astonishing decision to scrap the Glasgow Airport Rail Link," Gray says. "This was not a financial decision but a political one. He did it without consulting anyone.

"Labour will fight to reinstate Garl in next year's budget."