SNP's extra cash pledge for Capital welcomed by leaders

Published on Thursday 24 January 2008 09:53

CITY leaders today hailed the SNP government's promise of more cash for the Capital as a victory for the campaign to secure recognition of how much Edinburgh does for the whole of Scotland.

Finance Secretary John Swinney pledged a new "capital city supplement" for Edinburgh in the Scottish Government's next budget, raising the hope the city will receive millions extra in special funding.

It follows his announcement in December that a joint study between the Government and the city council would look at the extra burden borne by Edinburgh because of its role as capital.

He said: "I look forward to receiving the results of the study later this year, in good time to inform next year's budget when I will make provision for a capital city supplement for the city of Edinburgh."

The move came after independent Lothians MSP Margo MacDonald said such a line was the price of her support in last night's crucial vote on the SNP's first budget, which the Government won by 64 votes to 62.

Ms MacDonald said: "This is a victory for fairness and common sense. It would have been 100 per cent if we had got some money on account, but getting a budget line agreed for 2009-10 is about 95 per cent. I'm very pleased."

Council leader Jenny Dawe said the Government had accepted that Edinburgh has a special status.

She said: "We now have to come up with figures to show how much of a burden is borne by Edinburgh and the council taxpayers here for activities, festivals and events that are really for the whole of Scotland."

She said the calculations had not been completed, but it would "certainly be millions".

And city finance convener Gordon Mackenzie said the new fund would "right a wrong".

He said: "I'm delighted the Government has listened to the case being put forward by the council and Margo. For many years there has been a significant pressure on the city's finances from carrying out its role as capital."

He said that as well as the extra policing costs, areas which stood out were the Edinburgh Festival and Fringe. "These are world-leading festivals which bring enormous numbers of people to Scotland," he added.

Edinburgh North & Leith Labour MSP Malcolm Chisholm said Mr Swinney's announcement was to be welcomed.

He said: "A lot of discussion has still got to go on about how much will be allocated to it. We have to press for a significant sum rather than a token one."

Lothians SNP MSP Shirley-Anne Somerville also welcomed the commitment.

She said: "Under Labour, calls for Edinburgh to receive additional capital city funding continually fell on deaf ears. By contrast, the SNP government have listened to the arguments and engaged with the city council."