Chancellor Alistair Darling’s Budget has been given a mixed response in Scotland — with political parties unable to agree on what it means for us.
The SNP Scottish Government will get an additional £82 million as a direct consequence of measures announced in the Budget — but the SNP said the overall Scottish budget would fall in real tems, which take account of inflation.
Overall, the Budget will increase spending in Scotland by around £150 million with an extra £65 million in increased payments on child tax credits and winter fuel payments, tax relief announcements for first-time buyers and the computer games sector, and a new green investment bank that will help Scotland’s renewable energy sector.
Last night Scottish secretary Jim Murphy said Scottish ministers have more cash to spend than any other previous Scottish administration.
“Next year the Scottish Government will have the highest-ever budget in its history — more than double what Donald Dewar had,” he said.
“Today it is getting a further £80m increase in its budget.
“I have also written today to the chief secretary saying that I want Scotland to benefit from the decision to relocate civil service jobs out of central London and I will be taking that forward in the coming days.
“The help that has been announced today is possible because the British Government has stopped unemployment rising by as much as we once feared.
“We also have the tax coming in from the bankers’ bonuses.
“We can use this to help those who need it most and that is the right thing to do.”Wasted opportunity claim
But Scottish finance secretary John Swinney called the Budget “an enormous wasted opportunity for Scotland.”
He said, “Our overall budget is falling in real terms in the forthcoming year for the first time since devolution.”
Mr Swinney accused Alistair Darling of failing to deliver a continued fiscal stimulus through accelerated capital spending “at a cost of some 4000 jobs in Scotland.”
“He preferred to save face with the City, rather than save jobs in Scotland.”
Tory shadow Scottish secretary David Mundell said, “Every cut in services, every rise in tax is as a result of Labour’s debt legacy and Labour’s mishandling of the economy. The interest payments alone on our national debt will soon total £60 billion a year.
“That is twice the entire annual Scottish budget — double what we spend on our schools, hospitals, police and transport on debt interest alone.
“There was nothing in this Budget except political positioning. No credible plan to deal with the debt. No serious plan to boost growth.
“All the spending decisions have been put off until after the election, and all the big tax rises concealed in the small print.
“Gordon Brown and Alistair Darling are mortgaging the country’s future in a cynical attempt to save their necks at the ballot box.”
Liberal Democrat Scotland spokesman Alistair Carmichael said, “If this Budget was the launch of the general election campaign, then Labour candidates must be despairing.
“Instead of making taxation fairer for the poorest in our community, Alistair Darling chose to freeze the level of personal income tax allowance, making an already unfair system even more unfair.
“The increase in fuel duty is a further blow to Scotland’s rural areas.”
Tory shadow Scottish secretary David Mundell said, “Every cut in services, every rise in tax is as a result of Labour’s debt legacy and Labour’s mishandling of the economy. The interest payments alone on our national debt will soon total £60 billion a year.
“That is twice the entire annual Scottish budget — double what we spend on our schools, hospitals, police and transport on debt interest alone.
“There was nothing in this Budget except political positioning. No credible plan to deal with the debt. No serious plan to boost growth.
“All the spending decisions have been put off until after the election, and all the big tax rises concealed in the small print.
“Gordon Brown and Alistair Darling are mortgaging the country’s future in a cynical attempt to save their necks at the ballot box.”
Liberal Democrat Scotland spokesman Alistair Carmichael said, “If this Budget was the launch of the general election campaign, then Labour candidates must be despairing.
“Instead of making taxation fairer for the poorest in our community, Alistair Darling chose to freeze the level of personal income tax allowance, making an already unfair system even more unfair.
“The increase in fuel duty is a further blow to Scotland’s rural areas.”