The Steamie

Monday, 26 January 2009

Hamish Macdonell - budget goes down to the wire

THE brinkmanship which has characterised the SNP's budget process for the last two years has got even more tense than usual.
The Steamie understands that John Swinney, the Finance Secretary, rang Andy Kerr, Labour's finance spokesman, twice over the weekend to discuss Labour's budget demands.
Mr Swinney is also due to meet Labour leader Iain Gray tonight to see if the two sides can compromise on the budget.
Labour wants major new investment in skills and apprenticeships in return for its support and the party has made clear to ministers that they will have to be given what they want or they will vote against the budget - they are very unlikely to abstain this year as they did last, to universal derision.
With the Greens also playing hard-ball and refusing to soften their demands for a major investment in house insulation, Mr Swinney needs something to give if he is to get his budget through.
He has apparently promised the Greens £10 million for home insulation when the Greens want £100 million. He will never go as high as £100 million but the Greens want him to raise the £10 million to a more respectable figure before they will consider supporting the budget.
Like Labour, the Greens do not intend to abstain, they say they will vote for or against, but they will not sit on the fence.
It is likely to go down to the last few minutes of Mr Swinney's wind-up speech on Friday. He will try to promise extra in that speech to get one of these two parties in board. If he fails to do enough, the budget may fall.
Then we will be in for recriminations.
ends

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