Scottish politics in disarray over failed budget

Thursday, 29 January 2009 6:01 PM

By Laura Miller

The Scottish government today faced criticism from Labour MSPs over its failure to secure a budget for Scotland next year.

Applause broke out from both sides in Holyrood during exchanges between first minister Alex Salmond and Iain Gray, leader of the Scottish Labour party.

"Labour MSPs should be ashamed" said Mr Salmond, who accused the party of "refusing to face its responsibilities."

He blamed the failure of the budget on Labour's decision to "put its own narrow interests" before those of Scotland.

But Labour leader Mr Gray accused Mr Salmond of "gratuitous scaremongering", and of wasting money.

He sought assurances that the government would enter into "serious discussions" about spending for next year.

Scottish ministers are desperately trying to salvage the 2009-10 budget for Scotland after a vote yesterday rejected it.

The £33 billion budget fell after a 64-64 tie was decided by a vote against by Scottish parliament presiding officer Alex Fergusson, who followed convention to keep the status quo.

First minister Alex Salmond has resubmitted the budget bill, but has made clear that he has not ruled out an election if the government's budget was rejected again.

Without support for the government's budget, "at some stage... it can't be a government," he said.

The Conservatives and independent MSP Margo MacDonald voted for the spending plans, but last-minute concessions failed to break the deadlock between the SNP and the opposing Labour, Lib Dems and Green parties.

The minority SNP government is now engaged in political wrangling with rival parties in an attempt to reach an agreement over spending for next year.

Lib Dem party leader Tavish Scott has suggested today that he might be prepared to drop his party's demand for a 2p cut in income tax.

"The government have got to get a budget through in short order, but we can certainly make progress if we get round the table and have a real discussion about finding a way to make this budget respond to the challenges this country faces," said Mr Scott.

MSPs are expected to vote on a new financial plan on 19 February, although that could be brought forward if other parties gave their backing.

Nick Weinberg, spokesman for Ladbrokes, was confident there would be a quick resolution to the budget problem.

"There appears to be an appetite for getting things sorted amongst the main Holyrood parties," he said.

Its odds-on (1/3) that the Scottish parliament will approve the SNP's proposed budget at the second time of asking, according to the bookmakers.

The firm are also taking bets for Lord Mandelson to be prime minister at the end of the year. The business secretary is now 66/1, from 100/1, to land the top job.

Tags:
• economy and finance
,
• regions
,
• scotland