Lib Dems' disappointment over tax cut rejection

Published on Wednesday 7 January 2009 16:35

Liberal Democrats said today they were "extremely disappointed" Holyrood ministers had ruled out personal tax cuts as part of the Scottish budget.

The Liberal Democrats – who are calling for a two pence cut in income tax – held talks with finance secretary John Swinney today.

As a minority government, the SNP administration needs the support of other parties to get its budget proposals through Holyrood.

And Liberal Democrat chief whip Mike Rumbles claimed: "As it stands, the budget is an inadequate response to the economic storm facing Scotland."

However a spokesman for Mr Swinney said: "We all want to have reasonable discussions about the budget, but the Lib Dems have got to get real."

SNP ministers argue that the tax cuts the Liberal Democrats want would lead to cuts in other areas.

And the spokesman said: "As we address the UK economic downturn, it is the height of irresponsibility to demand an 800 million cut to Scotland's budget, which would slash services, without a word of explanation as to where the cuts would fall."

He added: "The Scottish Government are bringing forward a budget for 2009-10 to begin this April, and we have delivered a six-point recovery plan to help business and families right now."

The spokesman also claimed the time needed to implement cuts in income tax in Scotland meant any reduction could not be brought in before 2010-11.

"As well as being the wrong policy, the earliest the tax powers could be implemented would be 2010-11," he said.

"Rather than offering constructive ideas to address the present downturn, the Lib Dems are clearly bringing forward the wrong policy for Scotland at the wrong time."

However Mr Rumbles stated: "The SNP has to remember that it is a minority government and needs support from other parties."

The Liberal Democrat MSP added: "Our door will remain open to the SNP right up to the budget vote. But we cannot proceed to the negotiating table until the Scottish Government signals that it will consider the principle of personal tax cuts.

"Hard pressed families and individuals need money back in their pockets right now.

"The ball is in their court."

The talks between the government and the Lib Dems took place ahead of the publication of the Budget Bill tomorrow.

And Labour leader Iain Gray urged the Nationalists to focus on jobs and the economy.

He said: "2009 is a year when Scots desperately need serious action from the SNP government not more bluster, spin and excuses. The budget is their first key test.

"Labour and the Parliament has made clear that John Swinney must change his budget in the face of the economic situation. This means more money for skills and retraining, and protection for vital public services."

Mr Gray added: "I am ready and willing to offer Scottish Labour's support for any serious proposal that will boost the economy, but if the SNP's budget puts jobs and services at risk we will not support it."