SNP hints at cash help for the city during economic gloom

Published on Thursday 15 January 2009 09:19

FINANCE Secretary John Swinney has held out the prospect of further cash help for Edinburgh if the Capital has to bear the brunt of the economic downturn.

During the debate on the Scottish Government's budget for 2009-10, he said he would "look carefully" at the city's needs in the context of the recession.

The budget already includes a 3.5m Capital City Supplement for Edinburgh, secured in return for Margo MacDonald's vote in last year's budget. But the independent Lothians MSP said in a UK-wide study Edinburgh was the only Scottish local authority listed as vulnerable to the credit crunch.

And she said the Capital was 14th out of 50 in a table of vulnerability to job losses.

Winding up the budget debate, Mr Swinney promised Ms MacDonald: "I will look carefully at the impact of the wider economic climate on the city of Edinburgh."

The Government won a comfortable majority in last night's vote on the crucial first stage of the budget process, though opposition parties warned they could still vote down the 33bn package when it comes back for final approval on January 28.

MSPs voted by 107 to 16 in favour of the general principles of the Budget Bill with only Ms MacDonald abstaining. Labour, Conservative and Green MSPs voted with the Government and only the Liberal Democrats voted against.

Ms Ms MacDonald said she wanted to persuade the Government that because of the likely impact of the recession, Edinburgh should retain at least some of the 90m a year collected in business rates in the city which is currently redistributed to the rest of the country.

She said: "I abstained because this is unfinished business. But I have high hopes because John Swinney has been pretty open-minded."

Meanwhile, SNP Lothians MSP Shirley-Anne Somerville criticised the Liberal Democrats in the parliament for voting against a budget which included the 3.5m Capital City Supplement. And she claimed the city's two Lib Dem MSPs had some explaining to do.

Ms Somerville said: "At one end of the Royal Mile, Lib Dem councillors have joined the SNP in calling for a Capital City Supplement. At the other, Lib Dem MSPs are voting against this vital boost to Edinburgh's budget.

"It is no surprise the Lib Dems don't know what they stand for, but to actively vote against their council colleagues takes their confusion to a whole new level.

"Margaret Smith and Mike Pringle have some serious questions to answer to their constituents and to their council colleagues."