Tories asked: Where should cuts be?

Mar 21 2013

Tories have been challenged to say where the Scottish Government should pass on cash cuts made by Chancellor George Osborne in his Budget.

First Minister Alex Salmond rejected the UK Government position that Scotland will have increased spending power and warned there will be an impact on key services.

"Far from there being an increase, there was a £50 million cut in this coming financial year where budgets have already been set for the health services, across the agencies, for police, for fire, for local government; a £50 million cut in this financial year as a result of what the Treasury was doing by sleight of hand," he said.

After the Budget was announced at Westminster, the UK Government's Scotland Office announced "additional spending power of £176 million over the next two years" for the Scottish Government. It led to calls for Finance Secretary John Swinney to start spending cash on long-awaited projects such as the Aberdeen city bypass.

But he complained that the Chancellor took £107 million of resources planned for running services over two years and offered £266 million in loan and equity facilities over which he has no discretion. The loans are essentially to help people buy houses and cannot be used to fulfil other aspirations such as infrastructure improvements, he warned. Taking into account additional payments, it amounts to a £90.7 million "hard-cash" cut, said Mr Swinney.

Mr Salmond, speaking at First Minister's Questions, said: "Will the Conservative party join with us in saying it's not a good idea to cut £50 million this coming year, £90 million over the next two years, of hard cash in terms of the Scottish budget which has already been allocated to spending departments around the country?

"Or will Ruth Davidson come forward with suggestions that her party are going to make for where these cuts are going to be found?"

Ms Davidson, the Scottish Conservative leader, said the additional UK allocations, made by combining £279 million in capital spending with a £103 reduction in day-to-day resource spending, equals more money.

Challenging Mr Salmond, she asked: "However much the First Minister complains now, however much John Swinney complained yesterday, if you add revenue and capital together, there was £176 million that came to Scotland yesterday as a result of that Budget."

The Scottish Government already has money for loans and equity, which ministers have praised as "good news", she said.