SNP's £3.5m city handout is branded a 'slap in the face'

Published on Saturday 10 January 2009 09:52

THE SNP government was today accused of giving Edinburgh a "slap in the face" by allocating only a fraction of the extra cash city leaders said was needed to fulfil its role as Scotland's Capital.

Cllr Ian Murray, Labour's finance spokesman, said the 3.5 million "Capital City Supplement" announced by the Government had to be seen against an estimated 33m of spending by the authority which was linked directly to the Capital's special status.

He said: "We had long discussions on this when we were the administration and we are delighted there is this extra money, but it's another SNP con.

"The council produced a detailed report saying we needed 33m, and that was a conservative estimate. To give us 3.5m is a bit of a slap in the face."

The cash announced as part of the Scottish Government's budget, published yesterday, is the first time Edinburgh's special status has been recognised financially.

The Liberal Democrat/SNP controlled city council told the Scottish Government it had identified annual expenditure of 10.7m and a one-off requirement for 22.2m directly attributable to Edinburgh's role as Scotland's capital city.

Finance convener Lib Dem Gordon Mackenzie said the 3.5m for next year was "very welcome and a good start".

He added: "We believe we have a legitimate case for a far higher level of settlement and we will continue to make that case to the Scottish Government."

Edinburgh West Liberal Democrat MSP Margaret Smith said: "The figure falls well short of the 33m the council asked for and given the tough financial situation the council faces, will not address the range of issues, including the need for more affordable housing, which were highlighted in the council's submission."

Finance Secretary John Swinney promised a Capital City Supplement as part of a deal to win the support of independent Lothians MSP Margo MacDonald for last year's Scottish Government budget.

Ms MacDonald has welcomed the 3.5m allocation, but said: "When he first agreed to my request for the Capital City Supplement, the potential unemployment levels that may result from the current depression were almost unimaginable. That position is dramatically changed, and may demand a change in the all-over package of support."

A Government spokesman said:

"The sum of 3.5m was agreed on the basis of a detailed analysis of the unique status of Edinburgh as Scotland's capital and the extra financial demands placed on it as a consequence."

SNP Lothians MSP Shriley-Anne Somerville said 18 months of SNP government had delivered better deal than eight years of Labour. She said: "After years of Labour refusal to acknowledge the unique position Edinburgh holds as Scotland's capital this 3.5m commitment is a vindication of Edinburgh's support for the SNP."