Budget 'must offer youth jobs'

LABOUR will oppose SNP spending plans for the next financial year unless ministers find more cash to spend on job schemes for out-of-work youngsters.

• Scottish Labour leader Iain Gray with Ed Miliband in Dalkeith this past week Photograph: TSPL

With bargaining between the Scottish parties over the 2011-12 budget set to get under way in earnest this week, Labour leader Iain Gray has warned that his party's price will be commitments on a new Jobs Fund, under which the state creates work for 18 to 24-year-olds and guarantees that all school leavers can get an apprenticeship.

In addition, Labour are demanding that finance secretary John Swinney come up with a reworked plan for a "supermarket tax" and to divert more funds into regeneration projects linked to Glasgow's 2014 Commonwealth Games.

Labour sources last night said it was for SNP ministers to work out how to pay for their wish list, which has emerged as Swinney prepares to go to Holyrood this week to ask MSPs to back his spending proposals.

The Scottish Government has put forward its plans to freeze the council tax, impose a pay freeze on public sector workers, and increase rates for big retailers. But with SNP ministers insisting that opponents can only expect co-operation if their plans are fully costed, the path looks set for Labour to reject the budget plans.

With the parliament's two Green MSPs also voicing their opposition over public sector cuts, the SNP looks set to require support from the Conservatives and the Lib Dems to ensure the bill's safe passage.

Labour's finance spokesman Andy Kerr said last night he rejected the SNP's budget plans as they stood. "What we have seen over the past three years, and in this budget too, is a cumulative failure to support the economy and create jobs. Our task will be to ensure that we achieve a future jobs fund for young Scots, a guaranteed apprenticeship for those who are qualified and want one, and to address the massive cuts made by the SNP in regeneration."

However, Swinney said last night that his opponents had to show how they would afford their plans. The Scottish budget allocation made by the UK government is the first real-terms cut since devolution.

Swinney said: "The most pressing challenge that Scotland and our parliament faces is delivering the best possible budget for next year in the face of swingeing cuts of some 1.3 billion from Westminster.

"The Scottish Government will always consider ideas that match the priorities of supporting economic growth and protecting frontline services. But any proposals must also explain where else in the budget the money would come from to fund them."

Last night, the Lib Dems said they had already made it clear they wanted Swinney to cut back on high public sector pay. The party is running a campaign to cut the pay of people who earn more than 100,000 in public sector jobs.

Finance spokesman Jeremy Purvis said: "In my meetings with John Swinney I've made it clear that I expect this government to get a grip on top pay. We expect to hear from John Swinney ahead of the vote on Wednesday how he proposes to take forward our priorities."

Last week, Conservative leader Annabel Goldie urged the SNP to drop plans for a 30m "supermarket tax" - a move which could prove decisive in their support for the budget.