Chamber
Meeting of the Parliament 25 January 2012
25 Jan 2012 · S4 · Meeting of the Parliament
Item of business
Budget (Scotland) Bill: Stage 1
We will get more borrowing powers if the SNP supports the Scotland Bill. It will be interesting to see whether that happens.
As I understand it, the First Minister said yesterday that the Bank of England would be the lender of last resort to the new independent country. In other words, the Bank of England of the UK would set the borrowing limits of an independent Scotland. We are talking about key decisions: the bank would set the interest rates that govern the amount that everyone in this country pays on their mortgage. Is that acceptable to the SNP? Those are fundamental questions.
The SNP cannot claim that everything would be all right if we had the levers of power but then not say what it would do on taxation. Would it accept a 50p rate of taxation or take control of currency and interest rates? The SNP is abdicating responsibility. The argument in the SNP seems to be that it would not take those chances because that would be too risky as the markets might prey on a Scottish currency. That is actually an argument for being part of a union—perhaps it could be the United Kingdom.
These are difficult times. Young people and their families are incredibly worried, particularly because the Scottish Government seems to be closing the door to their getting the qualifications and training that they need by cutting college funding by 10 per cent last year and by a further 20 per cent this year. At a time when families are worried, there are cuts to social services and local authorities, with 13,000 jobs having gone in the past year.
The budget does not reflect the right priorities for Scotland. However, we will work with the SNP. Rather than make damaging cuts, the SNP must invest in housing and colleges to tackle youth unemployment, and it must invest in maintaining jobs and services. The SNP has £155 million in Barnett consequentials right now and £600 million—more than £0.5 billion pounds—of consequentials at its disposal. The way in which we choose to use our Government’s budget has a huge effect on our lives. We must step up to the challenge and use the budget to create jobs.
14:56
As I understand it, the First Minister said yesterday that the Bank of England would be the lender of last resort to the new independent country. In other words, the Bank of England of the UK would set the borrowing limits of an independent Scotland. We are talking about key decisions: the bank would set the interest rates that govern the amount that everyone in this country pays on their mortgage. Is that acceptable to the SNP? Those are fundamental questions.
The SNP cannot claim that everything would be all right if we had the levers of power but then not say what it would do on taxation. Would it accept a 50p rate of taxation or take control of currency and interest rates? The SNP is abdicating responsibility. The argument in the SNP seems to be that it would not take those chances because that would be too risky as the markets might prey on a Scottish currency. That is actually an argument for being part of a union—perhaps it could be the United Kingdom.
These are difficult times. Young people and their families are incredibly worried, particularly because the Scottish Government seems to be closing the door to their getting the qualifications and training that they need by cutting college funding by 10 per cent last year and by a further 20 per cent this year. At a time when families are worried, there are cuts to social services and local authorities, with 13,000 jobs having gone in the past year.
The budget does not reflect the right priorities for Scotland. However, we will work with the SNP. Rather than make damaging cuts, the SNP must invest in housing and colleges to tackle youth unemployment, and it must invest in maintaining jobs and services. The SNP has £155 million in Barnett consequentials right now and £600 million—more than £0.5 billion pounds—of consequentials at its disposal. The way in which we choose to use our Government’s budget has a huge effect on our lives. We must step up to the challenge and use the budget to create jobs.
14:56
In the same item of business
The Presiding Officer (Tricia Marwick)
NPA
The next item of business is a debate on motion S4M-01773, in the name of John Swinney, on stage 1 of the Budget (Scotland) Bill. Will members who wish to ta...
The Cabinet Secretary for Finance, Employment and Sustainable Growth (John Swinney)
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Gavin Brown (Lothian) (Con)
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John Swinney
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Ken Macintosh (Eastwood) (Lab)
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John Swinney
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Ken Macintosh
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John Swinney
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Gavin Brown
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John Swinney
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Mary Scanlon (Highlands and Islands) (Con)
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Ken Macintosh
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John Swinney
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Ken Macintosh
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The Deputy Presiding Officer (John Scott)
Con
I remind members to speak through the chair, please.
John Swinney
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Ken Macintosh
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Ken Macintosh
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John Mason (Glasgow Shettleston) (SNP)
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Ken Macintosh
Lab
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Gavin Brown (Lothian) (Con)
Con
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Kenneth Gibson (Cunninghame North) (SNP)
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Gavin Brown
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Maureen Watt (Aberdeen South and North Kincardine) (SNP)
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Gavin Brown
Con
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John Swinney
SNP
Will the member give way?
The Deputy Presiding Officer
Con
The member is in his last minute.