Scottish budget may be cut under a Tory government

In his speech to delegates at the Scottish Tory party conference in Perth he said Scotland will have to take its share of the pain and suggested the Barnett formula may be effectively scrapped.

While Tory leader David Cameron has recently promised to keep the Barnett formula as it is currently based, on population numbers, Mr Osborne made it clear in the future it would be based on need.

"Every need of every part of the UK must be fairly assessed," he said.

This could mean a massive reduction in the Scottish block grant.

He blamed Labour's "age of irresponsibility" and warned that it would mean an "age of austerity" in the years to come.

He promised that cuts would not hit front-line services, adding that quangos would be looked at.

"If someone wants to pay the head of a UK quango more than the prime minister of the day gets paid, then they will have to come and justify it to the chancellor of the day," he said.

"I will not balance the budget on the backs of those who work on the front line of our public services."

He also took a swipe at UK Labour ministers and SNP Scottish ministers for failing to talk to one another. He promised better communication with the Scottish Parliament and pledged he would send a Treasury minister to talk to MSPs when they present their first budget.

"This is so we can engage in a dialogue across a committee room, instead of a shouting match across an entire country," he said.

Labour claimed that the speech proved that Scotland's public services would be in trouble if the Tories win the next election and condemned Mr Osborne for calling investment in public services "a tragedy".

Labour MP Anne McGuire said: "Nurses, doctors, teachers across the UK deliver a first-class service, and for the Tory shadow chancellor to claim that increased spending on hospitals, and schools is a tragedy is very telling.

"To hear Mr Osborne's apparent relish in cutting money from public services was chilling."

Tory delegates also heard that a future Conservative government will replace Trident. Mr Cameron had recently said the 20 billion Trident replacement would have to be reviewed.

However, shadow defence secretary Liam Fox said yesterday that "a submarine based nuclear deterrent will be replaced". However, he avoided using the word Trident.

In the home of the Black Watch regiment he condemned the UK government for sending soldiers ill-prepared and equipped to Afghanistan and Iraq. He also attacked cuts in defence spending but did not commit the Tories to building the two new aircraft carriers. Instead all defence spending will be part of a strategic defence review.

The uncertainty is bad news for ship builders on the Clyde where part of the aircraft carriers will be built.

Both Mr Osborne and Mr Fox, who have not been in the front line of criticism over expenses, apologised for the behaviour of MPs including some of their colleagues.

Mr Osborne said Mr Cameron was the only person who had shown any leadership in trying to clean up politics.

Goldie wants new mums to get weekly home help

MOTHERS should receive a minimum of six hours a week support until their child is five, Scottish Conservative leader Annabel Goldie said yesterday.

She wants home helps to provide support to families to mend the country's "broken society".

Although the party has no mandate in Holyrood, she said it would work to push through such a policy. She did not reveal the potential cost. At the party's conference in Perth Ms Goldie said:

"This broken society is pervasive. We would encourage parental responsibility and we would end the culture of long-term dependency.

"Children deserve a decent start in life, so a guaranteed level of support will be offered to mothers before their baby is born and in the first two weeks of a baby's life we guarantee a minimum of six hours' help in the home. This level of support will last until the child is five." Ms Goldie hopes the policy will go through at the next budget.

Dr Dean Marshall, chairman of the BMA Scottish GP Committee, said: "Health visitors are an integral part of the primary care team working with GPs providing essential care for new mums and children.

"BMA Scotland welcomes the Scottish Conservative announcement on giving children the best start in life."