Holyrood rivals to strike a deal and approve budget

MSPs were today expected to approve the SNP's budget for next year, ending the threat of an early election.

Talks were continuing between the Scottish Government and the main opposition parties ahead of the crucial vote on the 33 billion package.

A Scottish Government spokesman insisted no deal had yet been reached, but he said Labour, the Liberal Democrats and the Tories were engaged in "constructive" discussions.

The signs were that an offer of extra cash for college bursaries would be enough to stop the Lib Dems voting against the package.

If, as expected, the SNP wins the support of the Conservatives and Independent Lothians MSP Margo MacDonald, the abstention of the Lib Dems would be enough to secure approval of the budget.

Finance Secretary John Swinney wrote to all three main opposition parties, formally offering concessions in return for their support. It is understood these included the increased bursary cash to woo the Lib Dems, some kind of stimulus for private enterprise to satisfy the Tories and an offer on apprenticeships for Labour.

Lib Dem finance spokesperson Jeremy Purvis MSP said: "Liberal Democrats were clear that the budget needed to be stronger for young people in colleges so that they could gain skills, which will support economic recovery. It looks as if the government has accepted our case."

If Labour, the Lib Dems and Greens were to combine they could exactly match the SNP, Tories and Ms MacDonald in a 64-64 tie, obliging the Presiding Officer to use his vote to reject the budget.

There had been speculation that defeat could have led to the resignation of the government and an early election, but that now seems unlikely.

The government spokesman said: "We produced an extremely strong budget package, but we have also been open to other parties' points."

He said the SNP's proposals already protected health spending, allowed another year's council tax freeze, continued the bonus for small businesses and maintained police numbers.

Ms MacDonald said she was "hopeful" that she had secured a review of private finance projects and extra money for Edinburgh's roads and the ski centre at Hillend.

She said: "I'm looking for extra funding for these projects and a commitment to look at PFI/PPP projects with a view to making them a little fairer."

The Greens, the only party to vote against the budget when it passed its first vote in the parliament two weeks ago, set out a package of alternative revenue and spending proposals, which included saving 200m by delaying the new Forth road bridge for a year.